Residential Construction Industry Faces Crisis in Ontario

Strategic Insights -

A round-table discussion between the Residential Construction Council of Ontario (RESCON) and federal government officials, including Housing and Infrastructure Minister Gregor Robertson and Canada's Secretary of State for Labour John Zerucelli, highlighted the severe challenges facing Ontario's residential construction sector. The meeting came as the industry grapples with a decline in new housing starts and sales, with the potential for significant job losses and economic devastation if not addressed promptly.

Key Takeaways:

  • RESCON president Richard Lyall emphasized the need for immediate and bold action to address the crisis, citing a 30-per-cent decline in industry activity as a potential catalyst for 121,500 total job losses.
  • A 50-per-cent decline in industry activity could result in 202,500 job losses, while an 80-per-cent decline would total 324,000.
  • The industry's decline would have far-reaching effects on the entire Ontario economy, including industries that supply the new home market.
  • RESCON is advocating for a reduction in development charges, a reduction in red tape that adds to approval timelines, and a streamlined approvals process to boost homebuilding in the province.

Statistics:

  • 121,500 total job losses possible with a 30-per-cent decline in industry activity
  • 202,500 job losses possible with a 50-per-cent decline in industry activity
  • 324,000 job losses possible with an 80-per-cent decline in industry activity
  • 30-per-cent decline in industry activity would have devastating effects on the Ontario economy
  • 50-per-cent decline in industry activity would lead to significant hardship for many families

Sources:

  • GLOBE NEWSWIRE, Vaughan, Ont., July 30, 2025