Housing Industry Responds to Budget 2025: “From a promise of 500,000 new homes – to a plan that will cost 100,000 jobs”
Toronto, Nov. 05, 2025 (GLOBE NEWSWIRE) -- Greater Toronto Area, November 5, 2025 – The Large Urban Centre Alliance, co-facilitated by the Building Industry and Land Development Association (BILD), is deeply disappointed and concerned with the federal budget's response to the serious crisis impacting the housing sector in Canada’s largest municipalities. What was once a promise to deliver 500,000 new homes annually has now become a plan that will cost 100,000 jobs. Canadians are now facing the prospect of a worsening crisis that will impact housing supply, employment, economic activity, and ultimately, middle-class families.
“This budget relies on backward-looking data that provides false reassurances that Canada’s housing sector is prospering and that affordability is improving. But these are stale statistics. The latest figures show that new home sales have evaporated across all housing types in every major city across Canada – and a hundred thousand jobs are at risk,” said David Wilkes, President & CEO of BILD and co-facilitator of the Large Urban Centre Alliance. “Today’s budget missed an opportunity to address the historic downturn that the housing industry is experiencing with sales at near crisis levels. The lack of urgency to confront the current situation is committing us to a future of fewer jobs and less housing of all types in the years ahead.”
The latest data shows that year-to-date new home sales have declined sharply across many of Canada’s major municipalities compared to the 10-year average. Single-family and condominium apartment sales are down 82 per cent in the Greater Toronto Area, 81 per cent in the Greater Golden Horseshoe, 67 per cent in Vancouver, 40 per cent in Calgary, and 33 per cent in Edmonton, while in Montreal, condominium apartment sales have fallen by 75 per cent.
Budget 2025 acknowledges the affordability challenges in new home construction by confirming an increase to the GST/HST rebate thresholds to the first $1 million, with a declining rebate to $1.5 million, but only for first-time buyers – a very small fraction of the market. With this narrow application, the GST/HST on new homes will continue to erode affordability for Canadians in large urban centres where the need is greatest, leaving middle class buyers behind.
While there is an allocation of $12 billion over 10 years to housing enabling infrastructure, Budget 2025’s treatment of Development Charges (DCs) is particularly troubling. Not only has the federal government’s language changed markedly, backing away from the commitment to reduce DCs by 50%, but the commitment is now only a framework for federal, territorial, and provincial agreements, not an actionable plan to reduce municipal housing fees with any sense of urgency.
Equally troubling is the omission within the budget of the promised Multi-Unit Residential Building (MURB) tax incentive program, which has been seen as critical to recapitalizing the sector to build purpose-built rentals.
The sole positive budget item is the increase in funding to CMHC’s Apartment Construction Loan Program, however it is critical to note this is a loan program and will have marginal impact in lowering costs to future renters.
“The Alliance is deeply disappointed with Budget 2025. It does not deliver decisive action to build a strong and sustainable housing industry, which forms the foundation of our communities and economy,” said Wilkes. “Not only is the budget based on old data, but its commitments are centred on a reduced Build Canada Homes and vague language on a diluted framework to eventually reduce DCs following successful negotiations with provinces and ultimately municipalities – and the industry is left wondering: how long will that take?”
The Alliance continues to call on the federal government to recognize the magnitude of the crisis and reiterates the need to:
- Treat all Canadians fairly and extend the GST/HST exemption for all new home buyers
- Keep the election promise to reduce municipal development charges by 50%
- Honour its commitment to bring forward a Multi-Unit Residential Building (MURB) tax incentive program
“The industry stands ready to work with all levels of government to confront this growing crisis head-on,” said Wilkes. “In the months ahead, we will continue to engage with the federal government leading up to the Spring Economic Statement and closely monitor the impacts of Budget 2025. Our industry will continue to advocate for the bold action required to meet the housing needs of Canadian families, and to avoid the acute housing shortages in the years to come with the accompanying layoffs of 100,000+ workers in the residential construction sector.”
About The Large Urban Centre Alliance: The Large Urban Centre Alliance is a coalition of development industry leaders from Canada’s major census metropolitan areas. United by the shared challenges and opportunities of building in high-growth urban environments, the Alliance works collaboratively to advance solutions that support housing supply, infrastructure investment, and sustainable urban development. Through strategic advocacy, research, and engagement with all levels of government, the Alliance aims to ensure that the unique needs of large urban centres are recognized and addressed in policy and funding frameworks. Together, we are building a stronger voice for urban centres in Canada. The Large Urban Centre Alliance is facilitated by the Missing Middle Initiative and the Building Industry and Land Development Association (BILD).
About BILD: With more than 1,000 member companies, BILD is the voice of the home building, residential and non-residential land development and professional renovation industries in the Greater Toronto Area. The building and renovation industry provides 256,000 jobs in the region and $39.3 billion in investment value. BILD is affiliated with the Ontario and Canadian Home Builders’ Associations.
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For additional information or to schedule an interview, contact Janis McCulloch at jmcculloch@bildgta.ca (416-617-7994)
Janis McCulloch Building Industry and Land Development Association (BILD) 416-617-7994 jmcculloch@bildgta.ca
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