As housing supply and affordability continue to dwindle, the Residential Construction Council of Ontario (RESCON) is renewing its call for coordinated efforts from all levels of government to address the pressing housing crisis. Highlighting the urgency of the situation, RESCON President Richard Lyall outlines three key steps to tackle the issue.
Reduce Taxes and Streamline Approvals
RESCON advocates for a reduction in taxes, fees, levies, and development charges on new housing. Taxes and fees currently constitute 31% of the cost of a new home, making housing unaffordable for many. Lyall emphasizes the need to streamline and simplify the development approvals system, citing unnecessary red tape and bureaucratic delays that hinder construction.
Incentivize Offsite Construction
The council proposes embracing and investing in offsite construction as a means of accelerating the construction process. Lyall envisions a modernized and digitized development approvals process to expedite projects. Offsite construction, similar to mass-producing cars in a factory, could significantly boost housing supply and affordability.
Financial Support and Tax Breaks
RESCON suggests providing financial assistance and tax breaks to encourage companies to establish modular housing manufacturing plants in Canada. Research and development funding is also recommended to keep the industry abreast of new technology and building techniques.
Lyall underscores the need for swift action, stating, “At the rate we are going, we’re not even close to fixing the crisis.” The excessive costs associated with housing construction, coupled with bureaucratic hurdles, are pushing home ownership out of reach. RESCON urges governments to halt additional costs, prioritize systemic improvements, and facilitate the construction of new homes to restore affordability to the market.
While some progress has been made in areas like purpose-built rental housing, the overall trend in new housing supply remains inadequate relative to population growth. RESCON emphasizes the importance of addressing systemic issues and speeding up construction processes to effectively address the ongoing housing crisis.
