December 12, 2009


TORONTO – A new survey conducted by the Ontario Home Builders’ Association of its members found that nearly four out of five expect construction activity to be equal or better next year compared to this year.
With a recovery in the economy seemingly underway, and with a rebound in the housing market already evident, 22 per cent of member builders and renovators said they intend to hire new staff in 2010.
“The residential construction industry appears to be on the road to recovery,” said OHBA
President, James Bazely. “We are cautiously optimistic that next year the new housing and renovation sectors will be positive contributors to job creation and economic growth.”
Members surveyed suggested the incoming harmonized sales tax was the most important issue facing the industry in the new year.
“One of our members’ top concerns was whether or not they would actually see any tax savings passed on from suppliers and manufacturers that they could in turn pass onto consumers,” noted Bazely. “The general sentiment is that while some savings should occur by removing embedded taxes, new home builders and renovators will believe it when they see it.
“The primary issue for renovators is the threat of a growing underground ‘cash’ economy when the sales tax jumps from five per cent to 15 per cent. This will rob the government of tax revenue and expose consumers to higher risks,” said Bazely. “We are still facing a lot of economic uncertainty, especially with the impact of new sales taxes coming into effect next year. But we do see the housing market stabilizing and an increase in housing starts in 2010.”