Mr. Chuck McShane
Good afternoon. My name is Chuck McShane, and I am proud to serve as the chief executive officer of the Niagara Home Builders’ Association. I would like to begin by thanking the Ministry of Finance for the opportunity to speak with you today. Our association represents 170 member companies, including builders, developers, professional consultants and service providers. For more than 70 years, we have been the collective voice of the home-building industry and the new home purchasers in the Niagara region. We are also proud to be members of the Ontario Home Builders’ Association and the Canadian Home Builders’ Association. We commend the government for the significant work undertaken to advance Bill 17 and Bill 60. These are important steps forward. However, there is still much more work required if we are to truly move the dial and enable our industry to deliver the housing Ontario urgently needs. Today, I would like to highlight two priority items for the committee’s consideration, both of which are essential to achieving our housing targets and restoring affordability. First, the south Niagara waste water treatment solution: The home-building industry fully supports the Niagara region’s request that the governments of Ontario and Canada each provide one third funding for the south Niagara waste water treatment plant, a critical piece of growth-related infrastructure. Provincial projections estimate that by 2051, Niagara region will be home to 689,000 residents and 272,000 jobs. The existing waste water infrastructure in south Niagara does not have the capacity to support this level of population or economic growth. With an estimated capital cost of $400 million, the south Niagara waste water treatment plant represents the largest investment in Niagara region’s history. Support from senior levels of government is essential to move this project forward and unlock the housing and employment growth our region has been planning for. The second, PST relief on all new home sales in Ontario: The Niagara Home Builders’ Association and the Ontario Home Builders’ Association are calling on the government to provide immediate PST relief on all new home sales and substantial renovations and to make this relief retroactive to May 27, 2025. For this measure to be effective, the relief must be applied at the point of purchase, reducing the purchase price before closing, rather than issued as a rebate after closing, so buyers can actually qualify for financing. Ontario currently has the most unaffordable housing market and land costs. Chronic undersupply and excessive taxation have pushed home ownership out of reach for too many families. Without decisive government action, this situation will not improve. Today, taxes account for approximately 35% of the cost of a new home. These costs are passed directly on to the consumer and embedded in their mortgage. Many of these taxes, including the PST, apply only to newly built homes. New homes are taxed at rates comparable to tobacco and alcohol. We do not believe that achieving home ownership should be treated as a luxury or a sin purchase. The construction industry is now in a full-scale affordability and viability crisis. There are currently 37,000 completed new homes sitting unsold, and housing completions projected for 2026 are expected to fall to just 42,000 units—half of what Ontario delivered only two years ago. Without intervention, 40,000 jobs are at risk within the next six months. Builders have gone to extraordinary lengths to retain skilled trades, keeping workers on payroll despite underutilization, to prevent them from leaving the industry altogether. However, even the largest builders in Canada can no longer sustain this. The proposed PST exemption for first-time homebuyers impacts less than 5% of all new home sales. This will not protect jobs, stimulate construction or meaningfully address affordability. By contrast, removing the PST on all new home sales would stimulate the construction of 53,000 new homes, generate $42.4 billion in economic activity, add $10.6 billion in wages and contribute $20.7 billion to Ontario’s GDP. Most importantly, it will reduce the price of a new home by the average of $60,000 for buyers across the province. We’re also asking the province to adopt the federal government’s 90% threshold to define a substantial renovation and to exempt those projects from PST. This change would support aging in place, modernizing our housing stock, enabling additional dwelling units and protect skilled construction jobs. We understand concerns that PST relief would cost the provincial treasury approximately $1.8 billion; however, the reality is that unsold homes generate zero tax revenue. These homes are not selling at current prices and without action, they are unlikely to. The province cannot lose revenue it was never going to collect. With a bold leadership, governments of all levels will also forgo future assessment growth and revenue needed to fund public services. Removing the PST on all new home sales would turn today’s zero-revenue environment into an engine for jobs, investment and economic stability. It is the only policy lever that delivers a meaningful, near-term reduction in home prices for all families—
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