Urgent Call for GST/HST Relief: 41,000 Jobs and $10 Billion Investment at Stake in GTA Housing Sector

Greater Toronto Area, June 23, 2025 – A groundbreaking analysis by Altus Group, commissioned by the Building Industry and Land Development Association (BILD) and the Ontario Home Builders’ Association (OHBA), reveals a dire scenario for the GTA's residential construction sector. Without immediate government intervention, nearly half of the sector's jobs—41,000 positions—are at risk. The study forecasts a potential 60% drop in housing starts by 2027 compared to 2024 levels, alongside a $10 billion decrease in construction investment.

Key Findings:

• 50% of residential construction jobs in the GTA could vanish without policy changes.
• Housing starts may plummet by over 60%, severely impacting future housing supply.
• Construction investment risks a $10 billion drop, affecting the broader economy.

The report underscores the urgent need for GST/HST relief on all new homes to mitigate these risks. Dave Wilkes, President and CEO of BILD, emphasizes the critical need for equitable treatment of new home buyers to safeguard jobs and investments.

Economic Analysis Highlights:

• Extending GST/HST exemption to all new owner-occupied homes could cost $2 billion nationally and $900 million provincially.
• This measure could lower housing costs, stimulate demand, and prevent future supply shocks.

Scott Andison, CEO of OHBA, points out the disproportionate impact on the GTA, where housing starts represent 20-25% of the national average and 40-45% of the provincial average. He argues that less than a billion dollars in government relief could protect 41,000 jobs, 23,000 annual housing starts, and over $10 billion in investment.

The Bigger Picture: Housing development is a long-term process, and current regulatory delays risk exacerbating the crisis. The call for action is clear: immediate GST/HST relief is essential to avoid a looming housing and employment crisis in the GTA.