Layoffs, Tax Risks, Economic Impacts, and Low Confidence: The LHBA calls on Government to Remove PST & GST on all new home sales, and Provide DC Relief
March 23, 2026 – The London Home Builders’ Association (LHBA) is sounding the alarm. If nothing changes soon for the residential construction industry, this year and beyond will see even worse consequences for our community than has already taken place in the previous 12 months.
Based on a recent LHBA survey, over 60% of builder, subtrade, and material supplier members shared they were forced to layoff staff in the last 12 months, with additional layoffs planned over the next 6 months. Builders were asked to score their confidence in the market over the next 12 months on a scale of 1-10 (10 being the highest), and the average was 3/10. Some builders cited not having built a new home since 2023.
Since last September, the construction sector as a whole in the London area has lost 5,800 jobs. This is a significant number, and while that number encompasses losses for many employers, the collective impact needs to be considered. If a layoff of that magnitude happened at Western University for example, it would equate to laying off almost 50% of their staff.
While builders are struggling, they are doing everything they can to keep their staff employed; so that when the market returns, there will still be the staff available to build the homes we desperately need. Without enough work to keep them employed, there are concerns of lateral moves outside the residential sector, or early retirements. Ontario already expects 20% of the existing construction workforce to retire by 2034 while only half those jobs would be refilled. There is a real risk that if the overall labour capacity declines, the longer-term impact will be reduced housing supply and increased price pressures.
A struggling new-home market has also led to builders shifting work to renovations, which the majority of LHBA renovator members surveyed cited as their biggest source of competition. Further, the nature and scope of renovation projects are changing, with approximately 75% of renovator members citing clients are scaling back projects to meet budget constraints.
What builders and renovators are experiencing is also trickling down to local building material suppliers who saw their revenue decrease by 60% from 2024-25, and over 50% expect further reductions in revenue for 2026.
The numbers are alarming and if nothing changes there is real risk for our community.
The City of London relies on assessment growth each year to help reduce the property tax burden, and with little construction on the horizon this year, that will be in jeopardy. Less building also means less development charge revenue, which the City relies on to support infrastructure for future growth.
A struggling construction industry means a significant negative economic impact in our community. For every home not built, the local economy loses $124,200 in spinoff revenue (CREA)**.
The numbers are clear and we are urging all levels of government to take immediate action. As we have been advocating for months, PST and GST need to be removed on all new home sales, and we need our municipal governments to provide relief on Development Charges. If no new houses are built and sold, then there will be no additional PST, GST and DCs to collect.
Data Sources:
* LHBA Member Survey conducted in March 2026
** CREA – https://content.crea.ca/MP-Reports/english/ON_London_Centre_en.pdf
*** StatsCan Employment Numbers
Interview Opportunities:
Jared Zaifman, CEO of the London Home Builders’ Association, is available for interviews at any time. Please reach out to jzaifman@lhba.on.ca or at 226-973-4378.
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ABOUT THE LONDON HOME BUILDERS’ ASSOCIATION (LHBA)
Founded in 1952, the LHBA represents more than 250 member companies including builders, developers, renovators, trade contractors, manufacturers, suppliers, financial institutions and a host of allied professionals. In addition, we are affiliated with both the Ontario Home Builders’ Association (OHBA) representing nearly 4,000 members and the Canadian Home Builders’ Association (CHBA) which represents more than 8,500 companies. Membership is voluntary and applicants are screened by a committee using criteria from the Association’s Code of Ethics.
We Build Great Communities. LHBA commits to providing ethical building and business practices for new home builds and renovations by advocating with all levels of government to ensure everyone can live in a well built or renovated home. While giving back to the community through awareness and charitable efforts, the members strongly believe they have an obligation to help make communities great. Visit lhba.on.ca for more information.