Ottawa Home Builders Welcome Federal and City Affordable Housing Partnership; Urge Broader Action to Reduce Costs and Restore Market Affordability

Ottawa, ON — The Greater Ottawa Home Builders’ Association (GOHBA) welcomes the Government of Canada and the City of Ottawa’s joint investment to accelerate deeply affordable housing. At the same time, GOHBA is urging all levels of government to extend similar cost relief to market housing to increase supply at scale and restore affordability for all Ottawa residents.

 

“GOHBA members fully support building deeply affordable housing, but cost pressures are keeping buyers out of every segment of the market,” said Jason Burggraaf, Executive Director of GOHBA. “The need to reduce development charges, reduce fees, and streamline permitting timelines in order to build more homes faster doesn’t just exist in the affordable housing context, we need it for all types of housing at all price points.”

 

Construction cost escalation is easing, but government taxes, charges, and fees on new homes in Ontario municipalities such as Ottawa remain elevated and are among the highest in Canada. GOHBA has consistently identified lowering government-imposed costs, particularly development charges, as a top priority to stimulate new home construction and restore affordability. Development charges on new construction are up 30 per cent in the past two years and have doubled over the last 10 years.

 

“To achieve affordability at scale, market housing needs similar cost relief so more homes can be built at prices people can afford,” said Burggraaf.

 

GOHBA has also called on the federal government for immediate tax relief on home prices for all families - specifically calling for the expansion of the promised GST rebate to all new homes, not just first-time buyers, and for the provincial government to match this relief by removing the PST portion.

 

“Ottawa also has a large cohort of buyers waiting on the sidelines for promised federal and provincial tax relief on new homes that still hasn’t materialized,” Burggraaf added.

 

Home sales in Ottawa fell 25.2 per cent year-over-year in October, and continued uncertainty around the timing of a promised GST rebate on new homes is further delaying purchase decisions.

 

“With home sales stalled, governments are already collecting zero tax revenue on completed units. We’re at a $0 baseline,” said Burggraaf. “Removing HST on all new home sales would convert today’s zero-revenue environment into an engine for jobs, investment, and economic growth.”

 

This announcement reducing and waiving development charges, permit fees, and property taxes for up to 3,000 mixed-income and affordable homes starting in 2026 is a strong step, but more action is needed to reduce costs and accelerate delivery across the full housing continuum, including market housing.

 

GOHBA looks forward to working with the City of Ottawa and the federal government to get these homes built and continue advancing practical, scalable solutions to increase supply and restore affordability for current and future residents.