Vaughan, Ont., Jan. 26, 2025 (GLOBE NEWSWIRE) -- The Residential Construction Council of Ontario (RESCON) supports the decision by Premier Doug Ford to seek a new mandate from voters Feb. 27 as the province must have the strongest and most effective leader in place to deal with a new aggressive U.S. administration, tariffs and persistent housing supply crisis.
"The proposal announced by President Donald Trump to impose a 25-per-cent tariff on Canadian exports to the U.S. and the dire state of housing supply in our province are both serious issues that threaten to undermine the economic health of Ontario and they need strong leadership in place to address them,” says RESCON president Richard Lyall.
"At such a crucial moment in the history of Ontario and Canada, our provincial leader must have the support and authority from the people to stand up and fight the tariff threat as well as address municipal and federal barriers to new housing getting approved and built.”
Premier Ford spoke about both issues last week at RESCON's annual general meeting. He noted the U.S. relies on Canadian energy and oil, minerals and potash, and that - instead of tariffs which would result in the loss of hundreds of thousands of jobs - it would be better for the two countries to work together. However, he has said he will not hesitate to reciprocate with our own tariffs and that he will stand "shoulder to shoulder” with the rest of Team Canada and use every tool in the toolbox if Trump proceeds with his threats.
On housing, Premier Ford told the meeting that steps have been taken to advance more housing construction, such as removing the HST on purpose-built rentals, building density next to transit hubs, investing in housing-enabling infrastructure and updating the building code. However, he said there is still work to be done, such as cutting red tape and regulations, along with reducing the tax burden on new housing. He pledged to help homebuilders to make homes more affordable for consumers.
A report completed for RESCON revealed that 36 per cent of the cost of a new home is due to taxes, fees and levies. That's up substantially from 31 per cent just three years ago. With the average price of a home at $1,070,000, consumers are now paying nearly $381,000 in taxes and fees. Escalation of development charges was deemed a main factor. The cities of Burlington and Vaughan have lowered their development charges and RESCON is calling on other municipalities in Ontario to follow suit. But if they don't, provincial action will be required.
A coalition of industry stakeholders and associations which includes RESCON is calling for a 75-per-cent decrease in development charges, which would reduce them to the more reasonable level they were at in 2015. New home buyers and renters have watched the taxes they pay - such as development charges on new housing - increase more than 1,000 per cent in just over a decade. And moribund approvals and time wasted continue to block projects from proceeding. In Toronto, where projects are supposed to be cleared in 90 days, approvals processes are taking at least 600 days to advance. First-time buyers and renters now unfairly foot massive bills from unnecessary bureaucratic delays that their parents never faced a generation ago.
At the federal level, the Conservatives have promised to cut the sales tax on new housing under $1 million if they form the next government, which will reduce the cost of an $800,000 home by $40,000. However, none of the other federal political parties have weighed in on plans to address the issue. In fact, their answer has been to raise capital gains taxes and create a housing accelerator fund which hasn't worked.
"In light of the impending threats that we face from both tariffs and runaway taxation that is killing new residential construction, we need a dedicated leader that will fight for Canada and Ontario,” adds Lyall. "The leader of our province must have a strong mandate to deal with these issues. Premier Doug Ford is a proven leader with a solid team and the right stuff in these unprecedented times.”
RESCON is the province's leading association of residential builders committed to providing leadership and fostering innovation in the industry.
CONTACT: Grant Cameron
RESCON
905-638-1706
