Recommendations include tax rebate, incentives for homebuilders
The Residential Construction Council of Ontario (RESCON) has put forward a series of recommendations to the federal government, urging for the implementation of measures aimed at assisting first-time homebuyers and stimulating the construction sector.
RESCON president Richard Lyall said these recommendations are specifically aimed at helping first-time homebuyers access affordable housing and boosting supply through additional support for homebuilders.
“First-time buyers are leaving our cities in droves because they’ve been priced out of the market,” Lyall said in a statement. “The measures we are suggesting would boost supply and help homebuilders construct housing that is financially viable and affordable.”
The council had sent its recommendations to Finance Minister Chrystia Freeland for the 2024 federal budget, offering insight into measures that “will contribute significantly to ensuring housing supply and affordability issues are addressed.”
The proposals include a full rebate of the harmonized sales tax (HST) for first-time homebuyers and the revival of incentives for builders to spur new home construction, such as limited dividend programs and tax deferral policies from past decades.
Lyall pointed out the disproportionate impact of the current housing crisis on first-time homebuyers, citing high interest rates, escalating costs for materials and labour, and substantial taxes and fees as barriers to market entry.
“Major policy changes are needed in the budget to help first-time buyers,” he said.
RESCON’s submission also called for the utilization of surplus crown and crown agency lands for residential development and the enhancement of municipal capacities for supporting housing construction infrastructure.
Additionally, the council highlighted the looming issue of a workforce gap due to retirements in the construction sector, suggesting reforms to the immigration system to attract skilled workers.
“These are desperate times as sales of new homes have literally ground to a halt, yet our population continues to increase,” Lyall said. “The practical measures we are suggesting would help boost housing supply and contribute to ensuring affordability issues are addressed.”
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