Builders optimistic about housing bill to accelerate home building
Toronto, Ontario, May 12, 2025 (GLOBE NEWSWIRE) -- The Ontario Home Builders' Association (OHBA) is optimistic about the provincial government's proposed legislation, Protecting Ontario by Building Faster and Smarter Act, 2025, announced this morning by the Hon. Rob Flack, Minister of Municipal Affairs and Housing. OHBA CEO, Scott Andison, represented the residential construction industry at the announcement, welcoming the government's crisis-led approach to tackling Ontario's housing shortage.
The proposed legislation targets two of the most significant drivers of high housing costs: development charges and permitting and approval delays. Builders across Ontario have long advocated for action on these barriers, which in many cases add hundreds of thousands of dollars to the cost of a new home. The bill comes after months of consultation with OHBA representatives and other industry experts who shared data-driven evidence on the impact of development charges and delays.
'I'm very pleased by the level of engagement and representation from industry that was part of this process,' said Andison. 'We need all hands on deck to tackle the housing crisis, and I'm happy to know that Minister Flack understands that and sees value in having industry be part of the conversation. This legislation is a strong step towards boosting supply, restoring affordability, and protecting jobs in the residential construction sector.'
In particular, the bill aims to stimulate new home construction by implementing policies developed with municipalities to standardize development charges. Currently, government fees and taxes account for roughly 30-35% of the cost of a new home, making the government at different levels the biggest financial beneficiary of a new home purchase. Development charges account for about half of that cost and have increased dramatically over the last decade. The Greater Toronto Area has the highest development charges in North America, which have risen 176% since 2011, continuing to rise while we face the worst housing crisis the province has ever seen. Builders have long called for provincial action to reduce them and are happy to have been represented in the discussions that led to this legislation. OHBA is optimistic that this is a step towards driving down development costs and making houses more affordable for Ontarians.
The bill also looks to streamline the permitting and approval process for new developments by bringing consistency to a process that varies across the 444 municipalities in Ontario. This includes standardizing how local roads are designed and built to speed up construction and reduce costs for builders and home buyers. Like development charges, delays at the municipal level have a tangible impact on house prices, adding thousands of dollars per day to project costs that ultimately inflate the price of housing.
'Ontario's current housing framework is failing to meet the needs of average households, with homeownership increasingly out of reach and younger generations leaving the Greater Toronto Area in search of attainable living options,' said Kirstin Jensen, Vice President of Policy, Advocacy, and Relationships at OHBA. 'The legislative package introduced by Minister Flack represents a strong and necessary advancement toward restoring attainable housing in the province. Continued leadership of this nature—anchored in evidence-based policy and strong government-industry collaboration—will be critical to meaningfully addressing Ontario's housing supply and affordability challenges.'
This legislation represents the collaborative, systemic approach that OHBA has called for. We look forward to seeing the full details of the bill when it is introduced in the legislature this afternoon. A member release outlining the bill's details and implications for the residential construction industry will be issued following the introduction.
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About the Ontario Home Builders' Association
Founded in 1962, the Ontario Home Builders' Association (OHBA) is the voice of the residential construction industry in Ontario. It represents over 4,000 member companies in the home building, land development, professional renovation, and professional services sectors through 28 local chapter associations across the province. OHBA advocates on behalf of its members to key stakeholders, provides member benefits and training, and promotes innovation and professionalism within the residential construction industry.
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