Residential Construction Council of Ontario<\/a> is pleased that Budget 2025 solidifies pledges and programs that the federal government announced earlier to spur new housing construction, especially the commitment to cut sales taxes.<\/p>\n\u201cEliminating the GST on new homes at or under $1 million and reducing it on those up to $1.5 million for first-time buyers is a step in the right direction because exorbitant taxes, fees and levies are crippling the residential construction industry,\u201d says RESCON president Richard Lyall. \u201cFirst-time buyers represent a substantial segment of the market, and we are already seeing increased traffic at sales centres as a result of the move. It is a step in the right direction.\u201d<\/p>\n
The province has promised to follow suit. Together, the cuts will shave 13 percent off the cost of a new home for first-time buyers. On a $1-million new home, the savings amount to $130,000.<\/p>\n
\u201cThe tax burden on new housing is one of the critical factors that are stymieing new construction and driving up costs,\u201d says Lyall. \u201cPresently, the tax burden accounts for 36 per cent of the cost of a new home. The best way to improve housing affordability is to prioritize lowering costs via reducing the tax burden. Cutting the sales tax should help move the needle.\u201d<\/p>\n
RESCON also looks forward to working with the federal government on the Build Canada Homes initiative. Collaboration with the private sector is key here in order to make the program successful, as our members know how to build homes quickly, sustainably and affordably.<\/p>\n
The commitment by the feds to pump billions of dollars into infrastructure and create new pathways for careers in construction are also key to getting more new homes built.<\/p>\n
\u201cIt is critical that we get this right as the housing situation in Ontario is grim just now,\u201d adds Lyall. \u201cWe are in the worst housing crisis in a generation, and bold action is necessary.\u201d<\/p>\n<\/div>\n
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