(MENAFN- GlobeNewsWire - Nasdaq) Vaughan, Ont., Oct. 28, 2025 (GLOBE NEWSWIRE) -- The Residential Construction Council of Ontario (RESCON) commends Premier Doug Ford, Municipal Affairs and Housing Minister Rob Flack, and Finance Minister Peter Bethlenfalvy for moving to cut sales taxes on new homes for first-time buyers.

“Lowering the excessive tax burden on the purchase of a new home for first-time buyers, in line with what the feds have done, will help those who have been priced out of the market,” says RESCON president Richard Lyall.“First-time buyers account for roughly 35 per cent of new home purchases but they have been particularly hard hit, given the housing-cost-to-income-ratio which, in recent years, has moved beyond historic averages. This initiative will help to prevent younger talent and families from leaving the Greater Toronto Area and the province.

“The timing of this action is critical as the outlook for the residential construction industry is grim just now,” explains Lyall.“In Toronto, for example, housing starts are near a 30-year low, and sales have ground to a halt. Forecasts indicate this weakness is expected to continue.”

At a recent housing summit sponsored by RESCON, construction industry experts, professionals and stakeholders indicated that the heavy tax burden is one of the main hurdles in the way of new home construction. Presently, 36 per cent of the cost of a new home is due to tax, fees and levies. The only way to improve housing affordability is to reduce the tax burden.

The provincial initiative - when combined with the federal measure to eliminate the GST on new homes at or under $1 million for first-time buyers as well as reducing it on new homes between $1 and $1.5 million - will save first-time homebuyers $130,000 on a $1-million home.

“We are in the worst housing crisis in a generation, and these unprecedented times require bold, innovative solutions,” says Lyall.“We will monitor the impact of these measures on the first-time buyer segment - some of whom build these houses - and will continue to advocate for other changes which will be necessary to correct the complex problems preventing new housing supply from being produced.”

RESCON is the province's leading association of residential builders committed to providing leadership and fostering innovation in the industry.

CONTACT: Grant Cameron RESCON 905-638-1706...

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