Large Urban Centre Alliance and BILD say Ottawa’s plan leans on stale data, limits GST/HST relief, ducks development-charge cuts, and omits a promised MURB incentive—warning of fewer homes and layoffs
By NetNewsLedger Staff
Category: Business
TORONTO/THUNDER BAY — A coalition of major-city builders says Budget 2025 walks back Ottawa’s housing ambitions, warning it could erase 100,000 jobs and depress new-home construction across Canada. The Large Urban Centre Alliance, co-facilitated by the Building Industry and Land Development Association (BILD), argues the budget relies on “backward-looking” indicators that ignore a steep, ongoing demand shock.
“This budget missed an opportunity to address the historic downturn the housing industry is experiencing,” said David Wilkes, President & CEO of BILD. “Sales are at near crisis levels.”
What the industry says is going wrong
-
Sales slump across big markets: Year-to-date new-home sales versus 10-year averages are down 82% (GTA) and 81% (Greater Golden Horseshoe), 67% (Vancouver), 40% (Calgary), 33% (Edmonton), and Montreal condo sales down 75%, according to the Alliance.
-
Narrow GST/HST relief: Raising the rebate threshold to $1M (phasing out by $1.5M) but only for first-time buyers leaves most urban purchasers—and many builders—without meaningful relief.
-
Development Charges (DCs): The Alliance says Ottawa has softened its commitment from a 50% reduction to a vague framework tied to future federal–provincial–territorial deals, with no clear timeline.
-
MURB incentive missing: The promised Multi-Unit Residential Building tax incentive—expected to help finance purpose-built rentals—didn’t appear in the budget.
-
More loans, limited relief: Added capital for CMHC’s Apartment Construction Loan Program is welcome, but the Alliance notes loans don’t lower end costs like tax or fee cuts would.
Why Thunder Bay should care
While the Alliance represents large CMAs, the policy levers at issue—GST/HST treatment, DCs, and rental incentives—shape project viability in Northwestern Ontario too.
Builders say fee certainty and clear incentives are especially critical for mid-rise, missing-middle, and rental projects that Thunder Bay needs to hit housing targets. Without them, higher rates and construction costs can mothball local sites or push timelines out years.
The industry’s ask to Ottawa
-
Extend GST/HST relief beyond first-time buyers so all new-home purchasers benefit.
-
Keep the election pledge to cut municipal DCs by 50%—with dollars and deadlines.
-
Table the MURB tax incentive to unlock financing for purpose-built rentals.
“The industry stands ready to work with all levels of government,” Wilkes added, saying groups will press for adjustments in the Spring Economic Statement.
About the groups
-
Large Urban Centre Alliance: A coalition of development leaders from Canada’s major CMAs, co-facilitated by the Missing Middle Initiative and BILD, focused on supply, infrastructure, and sustainable urban growth.
-
BILD: Represents 1,000+ member companies in the GTA’s building, land development, and professional renovation sectors; the industry supports ~256,000 jobs and $39.3B in investment value, according to the association.
