By Brad Carr

Canada has much to do in a fast-changing global environment to build a truly

national economy

. We need to become more productive. We need to do it in a way that benefits everyone. And housing must play a key part.

With Parliament set to return in the coming days, the need for the public and private sectors to work together to accelerate construction has never been greater. Housing is already recognized as one of Canada’s most powerful economic drivers, supporting more than 880,000 jobs across the country and contributing $124 billion to gross domestic product in 2024 alone.

Beyond the traditional trades, the sector sustains a wide range of local businesses, generates $62 billion in wages and anchors billions in built investment value.

Housing, however, is about more than economic impact; it’s also about creating homes and strengthening communities. A home grounds us, protects us, gives us stability and opens pathways to opportunity and possibility.

Across Canada, especially in Ontario, there has been a dramatic drop in new home starts this year. The housing sector is in the doldrums due to

challenging market conditions.

But amid all the meetings, reports and discussions about spurring the housing sector, we’re missing the bigger picture. Too often, the conversation gets stuck on what’s too bold, too difficult or too expensive. This must change because doing nothing is the costliest choice of all. Delayed steps by government may seem fiscally responsible now, but they will result in higher economic and social costs in the future.

With fewer housing starts and a weak job market, governments will lose out on the higher tax revenue that accrues from housing sector activity while also being forced to cover lost revenue, rising employment insurance payments and other economic shortfalls.

When it comes to housing, the most critical foundation worth laying is one of action.

We must act. But how?

As a starting point, we have to unlock demand. Canada finds itself in an unusual position where housing supply isn’t keeping pace with need, as economic headwinds, trade tensions and high

interest rates

are keeping demand on the sidelines. Yet we know that 79 per cent of Canadians under the age of 45 still dream of owning a home.

The federal government’s proposal to cut the GST for first-time buyers on homes up to $1 million is a good start, but it needs to go further to get people buying again. Ottawa should apply the rebate at closing, not purchase, to remove confusion and give buyers of new homes immediate certainty.

For the next 24 months, the rebate should also apply to all buyers of new homes, not just first-timers, to spark demand and move unsold inventory. Finally, the rebate should cover the first $1 million of any home’s price so that Canadians in higher-cost regions are treated fairly. And in Ontario, there is strong support for

Premier Doug Ford

’s call to work with

Prime Minister Mark Carney

to match this policy.

Next, municipal development charges (DCs) are fees that local governments charge to cover the cost of new infrastructure and services. In some of Canada’s largest urban centres, DCs have climbed to more than 10 times their 1995 level, reaching as high as $148,000 per house.

The challenge is that many of these costs are used to cover projects unrelated to new housing and end up putting the full burden of municipal infrastructure improvements on the backs of those trying to buy a new home. DCs must be lowered, there must be more transparency in how they are used and they should only be applied to projects tied to new housing.

On the supply side, slow approvals and red tape remain the biggest barriers to new housing starts. It takes far too long to get approval to build homes and communities. Building approval timelines widely vary across Canada, ranging from about five months in Calgary to more than 30 months in Toronto.

Faster government timelines are essential because speed means more supply. More supply translates to lower costs and, ultimately, more affordable homes. But today’s overlapping layers of government create costly delays. Provinces and municipalities should move to simple, standardized approval timelines to get more homes built.

Finally, the job of government is to help where it can have the most impact. A healthy housing system includes affordable, rental, mid-market and ownership options. Governments should avoid prescribing which type of housing to focus on and prioritize policy levers that enable the market to deliver a full range of choices. Building more of everything is the only way to ensure people can find the homes they want, need and can afford.

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The stakes are clear: when we build more homes, the social and economic benefits move together. Stronger communities fuel stronger economies. Let’s stop debating the reasons why we can’t and channel that energy into the practical steps we can take right now.

Brad Carr is the chief executive of Mattamy Homes Canada.