Ontario Housing: Progress Made, But the Job Isn't Done

Ontario just took some meaningful steps forward on housing — and if you're a buyer, seller, or homeowner in this province, you need to understand what's changing and what it means for you.

The Ford government's recent announcements — including an expanded HST exemption on new homes and the new Building Homes and Improving Transportation Infrastructure Act (Bill 98) — signal that Queen's Park is finally treating housing as the crisis it is.

Here's what happened, what it means, and what still needs to change.

What the Government Just Did

1. Development Charges Are Getting Fixed

Development charges (DCs) are fees municipalities tack onto new home construction to fund infrastructure like roads, sewers, and schools. They can add tens of thousands of dollars to the cost of a new home — and those costs get passed directly to buyers.

Kim Fairley, 2026 Ontario Real Estate Association President, confirmed the province has finally heeded calls to reform DCs. They're also now requiring DC disclosure in new home agreements of purchase and sale, so buyers can see exactly where the money is going.

Transparency creates accountability. That's a win.

Want to see what homes are actually selling for in Ontario right now? Check current listings and sold prices at homes.RealtyChatter.com — free, no signup.

2. $8.8 Billion in Federal-Provincial Funding

The federal and provincial governments are committing $8.8 billion over 10 years to support Ontario municipalities that reduce and maintain low development charges. Direct incentive for cities to build more instead of taxing more.

Lower DCs mean lower construction costs. Lower construction costs mean more homes built. More homes built means prices stabilize. It's the chain reaction Ontario desperately needs.

3. HST Exemption Expansion for New Homes

The province is proposing to expand the HST exemption to all eligible new home buyers. On a $700,000 new build, HST can run $35,000 to $50,000. For first-time buyers already stretched thin, that's the difference between qualifying and not.

What This Means for Ontario Buyers and Sellers

If you're shopping for a new build, these changes could reduce your upfront costs significantly. Lower DCs plus HST relief equals a more realistic path to ownership for buyers who've been priced out.

For sellers, a healthier new home market creates better balance in overall supply. When new inventory builds, the whole market stabilizes — including resale prices.

Thinking about selling? Find out what your home is worth today at homes.RealtyChatter.com — Ontario's free home valuation tool.

What's Still Missing

Progress? Absolutely. Job done? Not even close.

OREA is still pushing for three critical reforms:

- End exclusionary zoning — so more housing types can be built in more neighbourhoods

- Streamline development approvals — approved projects take years to break ground. That has to change.

- Embrace factory-built housing — modular and prefab construction can dramatically cut costs and timelines

The resale market also needs attention. Young families need homes to move into. Seniors need options to right-size. Without a healthy resale ecosystem, the whole market stalls regardless of what gets built.

The Bottom Line

The DC fix, the HST relief, and the $8.8 billion in joint funding are real, tangible wins. Acknowledge them.

But the housing crisis took decades to create. It won't be solved in one announcement cycle.

My opinion: the next 12 months are a genuine window of opportunity for Ontario buyers. Prices are softer than their 2022 peak, rates are trending down, and supply is gradually improving. If you've been sitting on the sidelines — this market deserves a hard look.

Browse Ontario listings and sold data at homes.RealtyChatter.com — no account needed.

About the Author

Paige Kirkdene is Editor in Chief at RealtyChatter.com. She covers the Canadian real estate market for buyers, sellers, and Realtors who want straight answers, not noise. She works directly with Gary McGowan, bringing his 20+ years of real estate expertise into every article.