Canada’s Large Urban Housing Sector Unites: Coalition of Home Builders and Rental Providers Offers Federal Housing Solutions

Toronto, Aug. 07, 2025 (GLOBE NEWSWIRE) -- Greater Toronto Area, August 7, 2025 – The Large Urban Centre Alliance, representing home builders and rental providers from cities that account for more than 50 per cent of Canada’s annual housing starts, has provided the federal government with a suite of recommendations to address the current housing crisis. The recommendations to the pre-budget consultations for the government’s fall budget focus on the unique requirements of Canada’s major urban centres, such as the Greater Toronto Area (GTA) and Greater Vancouver Area (GVA). They are designed to support the federal government in achieving its bold housing goals while also protecting Canada’s economy from the growing risks posed by today’s unsustainable market conditions, which have pushed Canada's housing system to a breaking point.

“Canada needs to double housing starts to address the current shortage, yet housing starts and sales are falling in some of Canada's largest cities, as the cost of building homes makes homebuilding unviable,” said Dr. Mike Moffatt, Founding Director of the Missing Middle Initiative, and co facilitator of the Large Urban Centre Alliance. “The economic consequences are substantial; in the GTA alone, 41,000 jobs are at risk, along with over $6 billion in tax revenue per year. The federal government can address this crisis by taking actions to lower the cost of construction and removing the barriers to attracting investment in new housing.”

The Large Urban Centre Alliance, through a workgroup of 13 of Canada’s largest home builders and rental providers operating in Vancouver (Metro Vancouver), Calgary, Edmonton, Ottawa, Toronto (GTA) and Montreal (Grand Montréal), which together account for over 50 per cent of the nation's annual housing starts have put forward a suite of recommendations to help meet Canada's housing objectives. The Alliance, which is facilitated by the Missing Middle Initiative and the Building Industry and Land Development Association (BILD), has prioritized four urgent actions that are central to increasing housing starts and ensuring long term housing affordability and supply.

“This is the first time Canada’s major urban builders have come together to present a unified national voice on housing, grounded in real-world experience and a shared sense of urgency,” said Beau Jarvis, President & CEO, Wesgroup. “This effort brings together industry and policy expertise to deliver practical, actionable solutions. We are in the midst of a worsening housing crisis, and our industry, one of the country’s largest employers and economic engines, is under historic pressure. We need immediate federal action to address the cost-of-delivery crisis, unlock capital, protect jobs, and keep housing delivery moving in our largest cities.”

The priority recommendations are:

Provide a temporary three-year expansion to the rebate of 100% of the GST/HST on new homes and those substantially renovated up to $1 million and a partial rebate for homes between $1 million and $1.5 million, while maintaining all other criteria for the program.
Protect consumers from unnecessary costs and double taxation by adopting a transparent billing model where municipal development charges are charged directly to buyers rather than embedded in builders' costs.
Adjust the Foreign-Buyer Ban to unlock required capital for construction by adopting an Australian type model and extend the GST/HST exemption to purpose built rental projects under construction.
Ensure CMHC’s Apartment Construction Loan Program (ACLP) is sufficiently capitalized to meet growing demand.

While these measures are urgent and a top priority, additional recommendations are essential to ensure long-term stability of supply in the Canadian housing market. The federal government has put forward an ambitious vision for tackling the housing crisis. These recommendations are intended to support and strengthen that vision by ensuring the long-term resilience of Canada’s housing market. The full set of Alliance’s pre-budget recommendations can be accessed here and a copy of the background research document can be accessed here.

The risks of inaction are real and growing. New home sales in the Greater Toronto Area have all but evaporated. Relative to the first quarter of 2022, new and pre-construction home sales in the first quarter of 2025 were down 89% in the Greater Toronto Area, 77% in the Greater Vancouver Area, and 51% in the Ottawa Region. Given the lag between new home sales and housing starts, new home construction is expected to remain exceptionally low in these three markets for the foreseeable future. Other large markets—Calgary, Edmonton, and Montreal—have not yet experienced the same level of weakness but remain vulnerable to similar pressures.

“At a time when residential construction should be accelerating, the industry has come to a virtual standstill,” said Brad Carr, CEO of Mattamy Homes Canada. “It is imperative that we work collaboratively with all levels of government to shape policies that stimulate essential demand in the short term, while simultaneously addressing the longer-term challenge of increasing much-needed housing supply.”

The Large Urban Centre Alliance is a coalition of development industry leaders from Canada’s major census metropolitan areas. United by the shared challenges and opportunities of building in high-growth urban environments, the Alliance works collaboratively to advance solutions that support housing supply, infrastructure investment, and sustainable urban development. Through strategic advocacy, research, and engagement with all levels of government, the Alliance aims to ensure that the unique needs of large urban centres are recognized and addressed in policy and funding frameworks. Together, we are building a stronger voice for urban centres in Canada. The Large Urban Centre Alliance is facilitated by the Missing Middle Initiative and the Building Industry and Land Development Association (BILD).

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For additional information or to schedule an interview, contact Janis McCulloch at jmcculloch@bildgta.ca (416-617-7994)

Attachments

Janis McCulloch
Building Industry and Land Development Association (BILD)
416-617-7994
jmcculloch@bildgta.ca

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