GTA needs affordable housing to sustain economic growth

As governments tackle economic challenges from trade disputes and tariffs, they should focus on addressing the housing crisis. The Greater Toronto Area (GTA) is in dire need of more housing, which is crucial for the economy. Building new homes creates jobs and supports various industries across Canada. However, rising construction costs are making it difficult for new housing projects to succeed. These costs have increased due to higher prices for materials, labor, land, and government fees, including taxes. Consequently, new home sales are declining, while housing starts are dropping at a time when they are most needed. Consumer confidence is also shaken by the uncertainty surrounding tariffs and the economy. The GTA plays a key role in Canada's economy, and a strong housing market is essential for its ongoing success. The construction of homes helps to fuel the economy and supports many Canadian jobs. Currently, government fees and taxes account for about 25% of the average home cost in the GTA. The harmonized sales tax (HST), introduced in 1991, has seen its share increase significantly, making housing less affordable. For example, the federal collection on an average home has grown from $8,800 in 1991 to $47,000 today. As housing prices continue to rise, first-time buyers and young families face greater financial challenges. To address this, both federal and provincial governments should consider eliminating the HST on new homes. Working together on this solution could relieve some of the burden on homebuyers and help sustain the GTA's economic engine amid current global uncertainties. Bold action is necessary now to secure both economic stability and societal well-being in the region.