Tonight on the Brian Crombie Hour, Brian interviews Richard Lyall, President of RESCON, the Residential Construction Council of Ontario, about our Housing Crisis in the GTA and across Canada. Brian closes with his ten point plan to solve our housing crisis.
Richard Lyle discusses the current housing situation in Canada, describing it as a crisis and even a catastrophe in some areas. He emphasizes that it's not just a housing crisis but also a growth management crisis, particularly in Ontario. Richard covers the significant decline in GTA new home and condo sales, noting a 90% drop to 345 units in May, down from a typical 2,700 units monthly average. Despite ongoing construction activity, Richard highlights that the market has reached a critical point where new projects are not being announced, indicating a long-term decline in the industry.
Richard expresses concern over high unemployment rates predicting potential layoffs of 200,000 to 300,000 people in Ontario's new home and condo building sector, which could lead to a 1.5 to 2.5% GDP hit. Richard discusses the housing affordability crisis, highlighting that housing costs to income ratios remain unacceptably high, with numbers as high as 14:1 in some areas, compared to the ideal ratio of 3.5-4:1. He attributes the high costs to a combination of factors including excessive taxes, development fees, and regulations, noting that while some costs are beyond government control, others can be addressed through policy changes.
Additionally, he expresses concerns about the need for urgent action this fall to address the decline in housing projects and potential layoffs in the construction industry. He emphasizes the importance of preventing Toronto from becoming unaffordable and unattractive for growth. Richard suggests removing sales taxes on new housing, reducing land transfer taxes and development charges, streamlining the planning and zoning process, and standardizing rules across the province.
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Jul 16 202550 mins