As Canada deals with economic uncertainty, with international tariff threats putting pressure on key sectors, one industry remains a vital source of stability and employment: New housing and residential construction.

Residential construction is more than just building homes – it’s a powerful job creator that supports a broad ecosystem of local workers, from skilled trades and small contractors to suppliers, engineers, architects and municipal staff. According to data from the Canadian Home Builders’ Association, the residential construction sector directly and indirectly supports more than 1.5 million jobs across the country.

Cornerstone of local economies

In Ontario alone, homebuilding has become a cornerstone of local economies. With manufacturing facing international headwinds and retail slowing, housing is a critical sector in driving investment and employment at the local level. Every time a shovel hits the ground for a new home, it puts people to work. It’s not just carpenters and electricians – it’s also the many businesses supplying drywall, laying foundations, doing inspections and the entire local supply chains.

The resilience of the construction sector is particularly important now, as Canada faces new tariff threats from major trading partners. These could impact a range of industries, but the largely domestic nature of residential construction helps insulate local jobs from global shocks. However, the new housing sector is slowing down under the weight of crippling municipal red tape and long approvals processes as well as excessive taxation through development charges.

With the economy slowing, it is critical that the newly elected federal and provincial governments work together to reduce the tax burden on new housing and streamline approvals processes. We need swift action from the federal government on promises to address the GST on new housing and for the provincial government to quickly match that with the provincial share of the HST. Joint federal and provincial action would significantly reduce the tax burden on new housing.

Reductions in development charges

Equally important is for local municipal governments to come to the table with reductions in development charges. These charges, while essential for infrastructure, have increased dramatically over the past decade – far exceeding inflation. Reforming this system could save new homebuyers tens of thousands without jeopardizing municipal budgets.

Lastly, there is an urgent need to fix the delays in the approvals process. In some Ontario cities, developers face multi-year waits for planning and infrastructure approvals, adding cost and uncertainty. In contrast, out west, cities such as Calgary are approving projects in five months or less. The freshly elected Ontario government should address the crisis head on and reform our entire planning process to get shovels in the ground quickly.