The recent announcement to reduce development charges and remove HST on new homes is a meaningful step forward for housing delivery in Ontario. These measures apply to all sales made between April 1, 2026, and March 31, 2027.
With Mark Carney and Doug Ford outlining these measures, we’re starting to see real movement on one of the biggest constraints in our industry: cost.
For developers, builders, and investors, this directly impacts whether projects move forward.
Over the past several years, project economics have become increasingly difficult. Land remains expensive. Construction costs are still elevated. Financing is tighter. And development charges, in many cases, have grown to the point where they can determine whether a project is viable at all.
When those upfront costs get too high, projects stall. And when projects stall, supply doesn’t get delivered.
Reducing development charges helps ease that pressure. Removing HST on new homes also supports pricing and absorption, especially in a market where affordability is already stretched.
Together, these changes should improve feasibility across a broader range of projects and may help bring some stalled developments back into play. That said, the real impact will come down to execution.
Municipal alignment, timing, and clarity around implementation will all matter. Projects that are already close to construction will likely benefit first, while others may take longer to adjust.
For those focused on getting projects built, the priority is clear: take a fresh look at the numbers. Some deals that didn’t work before may start to make sense again. The focus now is simple. Turning policy into projects, and projects into completed homes.
We’ll be watching how this unfolds across the market in the months ahead.
