Partnerships, Sales, Affordability, and New Incentives

Toronto, ON – April 19, 2026

We are writing to share key updates and insights on Canada’s housing market, government partnerships, and evolving policies that directly impact our sector. Recent developments present both opportunities and challenges for builders, developers, and allied professionals across the province.

Ontario-Canada Partnership: Billions in Investment and Sales Surge

The Ontario and federal governments have signed a landmark partnership, committing $8.8 billion to public projects, including transit expansions and housing supply initiatives.

A harmonized HST rebate on new homes (up to $1 million) is now in effect, offering eligible buyers up to $130,000 in rebates. This has led to a surge in new home sales, with major builders reporting record activity since the rebate’s launch.

The partnership also includes up to 50% reductions in municipal development charges for three years, targeting municipalities covering 80% of Ontario’s population.

Affordable Homes: Persistent Challenge

Despite increased sales, affordability remains a pressing issue. Even with rebates and charge reductions, entry-level homes are still out of reach for many families. Builders note that the market needs deeper reforms to address affordability for the middle class and first-time buyers.

The resale market continues to compete with new builds, ensuring that tax savings are passed to buyers, but prices remain high relative to incomes.

Ottawa’s Leadership: Waiving Development Charges

The City of Ottawa is waiving up to $250 million in development charges, fees, and property taxes to support the construction of 3,000 affordable and mixed-income homes, in partnership with Build Canada Homes.

Over half of these units will be below market rates, with property tax relief for affordable units extended for 75 years. This model is expected to be adopted by other municipalities.

Building Permits: Recent Decline

February 2026 saw an 8.4% drop in building permit values nationwide, with Ontario leading declines in non-residential permits. Residential permits rose slightly, driven by multi-unit dwellings, but single-family permits fell.

The slowdown in permits signals ongoing challenges in financing and market confidence, despite government stimulus.

Seniors Reshaping the Market

Canada’s aging population is driving a gradual shift in housing demand. Many seniors are considering downsizing, but limited options are slowing this transition. Improving access to suitable homes for seniors could unlock inventory for younger buyers and reshape market dynamics.

Bill C-20: Build Canada Homes Act

Bill C-20 establishes Build Canada Homes, a federal agency dedicated to scaling affordable housing using public land and innovative construction methods.
Industry experts urge greater transparency, clear targets, and accountability in BCH’s implementation, especially regarding unit sizes for larger families.

The Act is expected to drive innovation and support housing that the market would not otherwise deliver.

CMHC Study: Productivity Down

A recent CMHC-supported study finds that labour productivity in residential construction has declined by 2.1% per year over two decades, with Ontario accounting for over half the national drop.

The decline is linked to industry fragmentation, regulatory complexity, and slow adoption of new technologies. Addressing these issues is critical for meeting housing targets and improving affordability.

New Home Construction Incentives

Energy efficiency incentives are available for new builds, with rebates up to $16,000 for homes meeting high efficiency standards. Builders and homeowners are encouraged to leverage these programs for cost savings and market differentiation.

In Summary: Construction industry is at a pivotal moment, with government partnerships, new incentives, and policy reforms offering pathways to increased sales and affordability. However, persistent challenges—affordability, productivity, permit declines, and demographic shifts—require ongoing attention and adaptation. We encourage all industry stakeholders to stay informed, engage with new programs, and advocate for reforms that support sustainable growth and affordability.

Please feel free to reach out reach out to us at info@gtastrategies.com or by phone at (888) 241 9948 ext 1.