Now that fall is firmly underway, the state of the housing market in Canada’s major urban areas is a top priority. The latest new home sales data is unequivocal. Without decisive and immediate action, the repercussions will not only deepen the housing crisis, but also undermine economic stability and employment, at a time when our country is confronting recessionary threats.

Concerning trend

According to Altus Group, there were just 359 new home sales in the GTA in July 2025, a 48-per-cent decline from July 2024 and 82 per cent below the 10-year average. Sales in Vancouver and Ottawa are also sharply down, at 70 and 50 per cent below historic levels, respectively. In August, there were only 300 new home sales in the GTA, a 42-per-cent decline from August 2024 and 81 per cent below the 10-year average. September sales figures are pending, but will likely not yield a significant change in trajectory.

These results are not an anomaly, but part of an alarming and worsening trend. Year-to-date sales in 2025 (up to August) stand at 3,002 units, compared to 4,434 during the same period in 1990, one of the most difficult years on record and a time when our population was significantly smaller and housing needs were far less acute..

We have been here before: The 1990s downturn left a lasting mark on our economy, with lost jobs in the construction and skilled trades sector, widespread financial strain on Canadians and a prolonged recovery.

As governments return to capitals across the country, the need for speed and purpose could not be greater. That means three things.

Comprehensive HST exemption

First, the federal and affected provincial governments must immediately implement a comprehensive HST exemption. As Ontario Premier Doug Ford has indicated, this is not the time for half measures. A full HST exemption on the first $1 million of a new home or substantially renovated home is the only fair and equitable policy approach – and one that reflects the original intent of the GST policy on new homes.

Second, the provincial government must accelerate the full implementation of Bill 17. While it is working to deliver long-overdue changes to development charges, much of the heavy lifting is being done by regulation still under development. Specifically, in collaboration with the federal government, work must be accelerated to redefine how major infrastructure and transit investments are funded and stop placing the burden on new homebuyers. By implementing these solutions, costs can be lowered in a substantial and equitable manner and help advance stalled new housing in the region.

Third, municipalities in the GTA must consider what they can do to create an economic and regulatory environment that supports new housing construction rather than hinder it. Some, such as Mississauga, Peel and Vaughan, have acted on development charges. Others, such as Toronto, have adopted a new approach for approvals. Councils across the GTA should be ensuring their policies and procedures are encouraging the addition of new housing rather than being a barrier by adding costs and delays.

Economic engine

Housing is more than just shelter – it is an economic engine. The residential construction industry supports hundreds of thousands of jobs in the GTA, from skilled trades to suppliers, professional services to manufacturers. When new home sales decline, jobs disappear. Altus Group has estimated that approximately 40 per cent of the direct jobs in the new housing sector are at risk. Not to mention the billions in investment, taxes and other spin-off impacts of the region.

The time for decisive action and leadership is now. Without it, we risk repeating the painful lessons of the past. With it, we can ensure Canadians seeking to buy a new house to call home can do so and that workers who have invested their careers in our sector can continue to build.