The recent announcement by Ontario Premier Doug Ford and Prime Minister Mark Carney that will make it possible for municipal development charges in Ontario to be reduced up to 50 per cent for three years is welcome indeed for the new homes industry.

The announcement came hot on the heels of the Ontario and Canadian governments removing the full 13 per cent HST on eligible new homes under $1 million, and reducing the HST on new homes between $1 million and $1.8 million for all buyers – not just first-time purchasers. These initiatives offer hope for both our economy and Ontarians who are interested in purchasing new homes, but are holding back because of affordability issues.

Kudos to both our local and provincial associations, BILD and OHBA, for advocating for this relief in the face of the negative impacts high development charges have on the feasibility of building and buying new homes.

These steps will go a long way to restoring consumer confidence, which is important to our economy. Housing investment is a major economic driver, representing 13 per cent of our GDP.

Messaging for the real estate industry

Remember, however, that real estate goes in cycles and historically, we always come back to homes being one of the best financial and lifestyle purchases Canadians can make. These are critical messages that real estate professionals who work with the public should be passing on to their clients, whether they be potential home buyers, the trades or any of the other industry stakeholders.

Certainly, we've experienced challenging real estate markets in Canada before, but those who ride out the cycles typically do well in building equity and benefitting from price increases over time.

Looking at this industry historically, new homes rose in value after the economic crisis in 2008. In fact, some prices doubled or tripled because of low interest rates, population growth and supply shortages. By 2024, the national average price of new homes had risen from $306,500 to over $700,000.

During the 2019-2021 pandemic years, many experts predicted falling prices would not recover until at least 2023. By the end of 2021, however, CREA’s house price index had risen by 26.6 per cent, the fastest annual pace on record.

Cycles have shown that new home trends follow resale. CREA tracks areas in Canada, and according to that organization, from 2015 to 2025, 35 of the 51 tracked areas saw resale real estate prices rise by 100 per cent or more. The lowest increase over the 51 areas was 5.2 per cent.

Again, generally, real estate appreciates over time.

Housing today is a "buyer's market"

As for new housing during the pandemic, condominiums took the lead in Ontario. We also saw an interesting move to “zoom towns” with remote workers and housing prices soared. Many who worked in Metro Toronto found that living in the outskirts was more economically feasible. 

In early 2022, prices peaked, having doubled since 2011, and the Bank of Canada started raising interest rates. By September of that year, average and median prices for detached houses declined by nearly $400,000 in the GTA. 

Despite all the negative coverage in the media, we are now experiencing a “buyer’s market.”

During Q4 2025 and the beginning of Q1 2026, the GTA housing market showed increasing inventory levels, especially for condos. Savvy real estate professionals are encouraging potential condominium purchasers to buy now.

With inventory the way it is, they are finding attractive prices and enjoying more negotiating power. 

Another thing to consider is the fact that today’s interest rates are incredibly low compared to what we experienced in the 1980s and 1990s. Owners who found strategies to cope with cyclical lows came out ahead in the long run.

Real estate and your overall wealth

It is important to communicate to clients that homeownership provides tax benefits and is an important part of a diversified financial portfolio.

Compared to stocks and bonds, real estate is a less volatile investment. For one thing, it is a tangible asset, which offers a certain level of peace of mind. Owners can keep an in-person check on their investment and can change or upgrade it without permission from a landlord. 

Even in economic downturns, holding onto real estate means continuing to build equity and increase the chances of profiting long term – something our homebuilder associations need to promote in a campaign.

Then there are psychological advantages of owning a home, such as a sense of permanency, security and belonging. Homeowners and their families usually feel more grounded in their own house or condominium than a rental dwelling.

Home ownership is a visible representation of achieving a milestone in life that is deeply gratifying.  This is something that never changes and is a major reason why home ownership remains the Canadian dream.