The residential construction industry across Hamilton, Burlington and the surrounding region continues to navigate a difficult market, with affordability concerns, economic uncertainty, and slowing activity putting pressure on businesses across the sector. At the same time, recent policy changes aimed at improving affordability are beginning to create cautious optimism that conditions may start to improve.
A recent Residential Market Pulse Survey conducted by the West End Home Builders’ Association (WE HBA) gathered feedback from builders, renovators, associates, and industry professionals across the residential construction sector. The results suggest many businesses are continuing to face meaningful challenges as market conditions remain soft.
For many respondents, the past year has been marked by slower activity and increased uncertainty. More than 60 per cent reported a decline in revenue between 2024 and 2025, while nearly 88 per cent said current market conditions have affected their ability to move forward with projects or business growth. More than half of those surveyed described the impact as significant.
When asked what is preventing buyers from entering the market, affordability and the cost of housing ranked as the most significant barrier by a wide margin. Respondents also pointed to economic uncertainty, hesitancy around market conditions, financing challenges, and reduced consumer confidence as factors slowing activity. In many cases, prospective buyers are simply waiting to see what happens next before making major financial decisions.
The effects of a slower housing market are felt well beyond homebuyers and builders. Residential construction supports a broad network of local jobs and businesses, from skilled trades and manufacturers to suppliers, planners, consultants, designers, renovators, and professional service providers. When projects slow or are delayed, the impacts are felt throughout the economy.
Survey responses reflected growing concern about declining housing starts, weak sales activity, rising competition, prolonged approval timelines, and continued affordability pressures. Several respondents described lower demand, delayed projects, and buyers remaining on the sidelines, while others expressed concerns about shrinking margins and ongoing uncertainty in the market. Staffing trends also point to strain within the sector, with nearly half of respondents reporting staff reductions over the past 12 months as companies adapt to slower conditions. At the same time, inquiry levels appear mixed across the industry, suggesting there is still interest in the market should affordability conditions continue to improve.
The Province of Ontario’s recent HST changes on new homes are already being viewed as a positive step by many in the residential construction industry. Effective April 1, 2026, the provincial portion of the HST was eliminated on new homes under $1 million and reduced on homes priced between $1 million and $1.85 million, creating meaningful savings for buyers.
For many families hoping to purchase a home, those savings may help make ownership more attainable at a time when affordability remains one of the biggest barriers to entering the market. For builders and the broader housing sector, many in the industry expect the changes to encourage activity and support projects that may have otherwise remained on hold.
That optimism was reflected clearly in the survey results, with nearly 88 per cent of respondents saying they expect the HST changes to have a moderate or significant positive impact on sales and construction activity over the next year. While no one expects challenges to disappear overnight, there is growing hope that practical affordability measures can begin to improve conditions and support jobs tied to the housing industry.
Housing plays an important role in the strength of local communities and local economies. As the region continues to grow, policies that improve affordability and support new housing supply will be critical, not only in helping more people achieve the dream of homeownership, but in supporting the businesses and workers who help build those communities every day.
