On February 25, 2026, a broad coalition across Ontario’s housing ecosystem called on the federal and Ontario governments to take targeted action on housing. Their message was clear. The housing crisis is not only about supply. It is also about confidence. Even where approvals exist, many projects are not moving forward, and thousands of approved units remain unbuilt.
The coalition includes realtors, builders, rental housing providers, trade and labour groups, not for profit organizations, and housing innovators. They acknowledge there has been progress through planning reform, funding programs, and efforts to streamline approvals. Still, housing delivery is constrained by stalled demand, frozen capital, and regulatory uncertainty. The result is a risk to future supply at the very moment Ontario needs more housing options for every stage of life.
The two problems happening at the same time
The coalition points to two pressures that are happening together.
- First, Ontario still has a structural housing shortage. There are not enough options that allow seniors to downsize, families to move up, and younger households to enter stable home ownership.
- Second, confidence is weakening. Demand is stalled, capital is sitting on the sidelines, and uncertainty in costs and rules is making it harder to build. When confidence drops, projects slow down, even when they are approved.
This combination matters because it pushes the housing challenge into the future. When approved homes do not get built today, tomorrow’s supply becomes even tighter.
What the coalition is asking for
The coalition is urging both levels of government to focus on restoring confidence and unlocking demand through targeted measures.
Federal recommendations
- Expand the GST rebate on new homes to all buyers.
- Modernize federal financing tools to support purpose built rentals and missing middle ownership housing.
- Restore practicality to mortgage qualification rules.
- Amend the foreign buyer prohibition with clear and enforceable guardrails.
Ontario recommendations
- Reform development charges and improve cost transparency.
- Expand the HST rebate on new homes to all buyers.
- End exclusionary zoning in large municipalities.
- Remove municipal barriers that slow housing delivery.
The coalition’s position is that incremental steps are no longer enough, and that stronger action is needed to translate policy into real homes, real jobs, and lasting affordability.
What this could mean for everyday people
"Policy talk can feel distant, but these topics connect directly to what households experience".
If financing tools improve and costs become more predictable, more rental projects and missing middle homes can move forward. That can translate into more choice, and less pressure on the limited supply that exists.
If mortgage qualification rules are adjusted, more buyers may be able to qualify without taking on more risk than they can carry. That can help demand return in a healthier way, especially for first time buyers.
If development charges and municipal barriers are addressed, builders may be able to deliver homes faster, and with more clarity on final pricing. That can reduce the number of projects that stall after approvals.
If zoning becomes more flexible in large municipalities, it becomes easier to add gentle density, like duplexes, triplexes, laneway housing, and other forms of missing middle housing that fit established neighbourhoods.
Our perspective at Charissa Realty
We work with clients at different stages, first time buyers, growing families, seniors planning a downsizing move, renters looking for stability, and investors looking for sustainable opportunities.
When confidence is low, people pause. When costs are unclear, builders wait. When projects pause, supply tightens. Then pressure builds again, and affordability becomes harder.
This is why coordinated action matters. It is not about one policy. It is about restoring predictability so that housing can be delivered consistently, and so that households can plan with greater confidence.
If you are planning a move this year
If you are thinking about buying, selling, renting, or investing in 2026, the best approach is still clarity and preparation.
- Know your numbers.
- Understand your options.
- Get pre approved if you are buying.
- Review timelines early if you are renting.
If you are selling, plan your preparation strategy before the market gets busier.
We can walk through your situation and help you build a practical plan for your next steps, contact us today.
Warm regards,
Babatunde and Sade,
Charissa Realty Inc., Brokerage.
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