Ford Government Unveils Urgent Housing Plans to Revive Market

UPDATE: The Ford government has just announced a series of urgent interventions aimed at revitalizing the struggling housing market in Ontario. With home construction at a near “standstill” for months, officials are pushing for a significant turnaround by spring 2026.

Ontario’s housing minister revealed that construction starts have sharply declined in 2025, as potential buyers remain hesitant amid soaring prices. This slump has placed the provincial goal of building 1.5 million homes further out of reach. Finance Minister Peter Bethlenfalvy recently admitted that this target is no longer a “hard target,” prompting immediate action.

To address this crisis, the government has introduced key legislative measures. Among them is Bill 17, which allows developers to defer municipal development charges until the property is sold, significantly easing upfront costs. This change, only enforced as of November 2025, aims to enhance cash flow for builders and expedite construction.

“If you have to pay these costly DCs up front, that takes away from getting shovels in the ground,” said Housing Minister Flack. “We’re in a housing crisis, so the more cash flow we can free up, the sooner we get more houses built and the cost will come down.”

In addition to Bill 17, the government has introduced Bill 60, which streamlines approval processes for new developments. This legislation is expected to create consistent standards for parking and landscaping, ultimately lowering construction costs.

The recent Fall Economic Statement also unveiled a significant incentive for first-time homebuyers: the provincial portion of the HST will be waived for new homes priced under $1 million. This move mirrors a federal initiative and aims to save buyers up to $130,000 on new home purchases.

Minister Flack emphasized that these strategies, combined with a potential drop in interest rates, are designed to rejuvenate the home construction sector. “We’re setting it up for next year,” he stated, expressing hopes for increased housing starts and projects.

However, skepticism remains within the building industry. Scott Andison of the Ontario Home Builders Association voiced concerns, stating, “2025 has been a very bleak year for builders in Ontario.” He added that while the government is addressing systemic issues, the current measures may not significantly impact the market.

“The first-time homebuyer exemption will have very little effect, less than five percent,” Andison warned. “We need an Ontario-led approach to remove the provincial sales tax on all new home purchases.”

Despite Premier Doug Ford’s interest in extending tax discounts for new homebuyers, finance officials have dismissed the proposal citing financial constraints. Meanwhile, Flack confirmed that the $1.2 billion Building Faster Fund is undergoing a review to better align with municipal capabilities for housing development.

Flack reassured that adjustments to the program metrics are being considered to better support municipalities and builders. “It’s about shovels in the ground, it’s the results, and that’s what we’re trying to create,” he stated.

As the Ontario government shifts its focus, the urgency of the housing crisis continues to escalate. With these new interventions, all eyes are on whether they can effectively stimulate market activity in the coming months. The hope is that with improved conditions, the housing market will rebound, providing much-needed relief for homebuyers and builders alike.