Canada’s housing conversation often centres on supply. We need more homes, and we need them faster. While that remains true, another challenge has emerged within the housing system that deserves equal attention: Confidence.

Across Canada, many approved housing projects are not moving forward. Builders face higher construction costs and tighter financing conditions, while many buyers remain cautious as they consider interest rates, economic uncertainty and the long-term commitment of homeownership. As a result, housing delivery has slowed at exactly the moment when more homes are needed.

Why this matters to homebuyers

The homes not being built today will be the homes missing from the market several years from now, and that affects everyone. Families hoping to move into larger homes may face fewer choices, while seniors looking to right-size may struggle to find suitable options in their communities. Younger households trying to enter the ownership market may also encounter fewer attainable opportunities.

Recognizing this challenge, the Toronto Regional Real Estate Board (TRREB) recently formed a coalition of realtors, builders, rental housing providers, business groups, labour organizations, trade associations, innovators and not-for-profit housing groups to call on both the federal and Ontario governments to take immediate targeted action to restore confidence and unlock housing construction. The coalition represents a broad cross section of the housing sector united by a common goal: Ensuring approved housing projects move forward so more homes reach the market.

Restoring momentum through federal action

Several federal policy changes could help restore momentum in the housing market. One proposal calls for expanding the GST rebate on newly built homes to all buyers. The rebate currently applies only to first-time buyers, but broadening eligibility would reduce the cost of purchasing a new home and help stimulate demand for new housing.

The coalition is calling for the modernization of federal financing tools to better support rental housing and missing middle housing, such as townhouses and small multi-unit buildings. Many projects cannot proceed because financing programs no longer reflect current construction costs or market conditions. Mortgage qualification rules also require review to ensure policies remain practical and reflect today’s economic environment while maintaining financial stability.

Federal policymakers should also consider adjustments to restrictions on foreign homebuyers so that foreign investment can support the construction of new housing supply.

The role of the Ontario government

Provincial leadership is also essential to improving housing delivery. Development charges have increased significantly across many Ontario municipalities over the past decade and now represent a substantial portion of the cost of building a new home. Reforming these charges and improving cost transparency would help restore project feasibility and give buyers a clearer understanding of how government fees influence housing prices.

The coalition is urging the Ontario government to expand the provincial HST rebate on new homes to all buyers. Extending this rebate would help lower the purchase price of newly built homes and support construction activity at a time when housing starts are declining.

Zoning reform remains another important part of the solution. Allowing missing middle housing such as duplexes, triplexes, fourplexes and small apartment buildings in existing neighbourhoods can expand attainable housing options while making better use of existing infrastructure. Removing municipal barriers that delay or complicate housing approvals will also help ensure housing policies translate into homes that are actually built.

Turning policy into homes

Ontario’s housing shortage developed over many years, and solving it will require sustained effort from all levels of government. Restoring confidence across the housing ecosystem is an essential step toward getting projects moving again. When builders can build and buyers can buy, communities benefit from a healthier and more balanced housing market.

The housing sector stands ready to work with governments to translate these policy recommendations into more homes for Canadians.

To learn more about TRREB’s ongoing work to support housing supply, affordability and other advocacy initiatives, visit trreb.ca/advocacy.