New tax relief measures aim to boost ownership as affordability gap persists nationwide
Ontario’s latest budget is doubling down on housing affordability, even as new data shows a majority of Canadians remain priced out of their ideal living situation.
The province’s 2026 fiscal plan introduces fresh measures aimed at lowering the cost of buying a home, including expanded tax relief and a renewed focus on increasing supply. The move comes against a backdrop of mounting pressure, with more than half of Canadians reporting they are not living in housing that meets their needs.
The Ontario Real Estate Association (OREA) welcomed the budget’s direction, emphasizing the importance of reducing barriers to ownership and accelerating construction.
“Ontario’s nearly 100,000 REALTORS know the true value that homeownership brings. That’s why OREA has made it our mission to keep the dream of homeownership alive by advocating for the Government of Ontario to focus on reducing barriers to housing affordability, bringing more supply to market, and supporting growth in our communities,” said Kim Fairley, OREA’s 2026 president.
At the centre of the province’s strategy is a proposed expansion of harmonized sales tax (HST) relief on new homes. The plan would eliminate the provincial portion of the tax for eligible buyers on properties valued up to $1 million, with partial rebates extending beyond that threshold.
Industry groups say the combined provincial and federal tax relief could deliver meaningful savings and stimulate construction. In some cases, buyers could see six-figure reductions on new homes, while the policy is also expected to drive new housing starts and job creation.
The budget also signals ongoing collaboration with Ottawa to address development charges—costs widely seen as a major contributor to high home prices.
However, despite these efforts, new research highlights the scale of the affordability challenge.
A national survey found that 55% of Canadians say their current home does not meet their ideal needs, with affordability cited as the single biggest obstacle.
Price pressures continue to shape buyer behaviour. Among those planning to purchase within the next year, the average budget sits around $677,000 which is below the country’s typical home price, highlighting a persistent mismatch between expectations and reality.
The data also reveals a clear divide between homeowners and renters. Ownership remains closely tied to satisfaction, with significantly more homeowners reporting they are happy with their living situation compared to renters.
"What struck me in the results is the satisfaction gap between owners and renters,” said Sean Simpson of Ipsos Public Affairs. “Eighty per cent of homeowners say they love their home and it's perfect for them, compared to just 50 per cent of renters. That 30-point gap helps explain why homeownership remains the goal for most Canadians – it's not just about building equity, it's about finding a place that truly feels like home."
Even so, affordability remains the dominant barrier. Nearly six in 10 respondents pointed to cost as the primary reason they are unable to secure their ideal home, followed by moving expenses and challenges saving for a down payment.
While Ontario’s policy push is designed to ease entry into the market, the broader data suggests structural issues persist—particularly around supply, pricing, and the widening gap between what buyers want and what they can afford.
