Industry Layoffs Underscore the Urgency for Action
Building on last week’s Monday Briefing discussion about policy innovation and legislative reform in both BC and Ontario—focused on accelerating housing delivery—it’s becoming increasingly clear just how critical and timely these reforms are, as we are seeing the consequences play out in real time across the region.
Last week’s headline—“Layoffs at Wesgroup add to Vancouver condo industry’s woes”—hit hard. Wesgroup Properties confirmed staff cuts and project delays due to a “cost-of-delivery crisis” and a “deeply stalled condo market”. CEO Beau Jarvis described it as “the toughest day” in Wesgroup’s 60-year history. Just weeks earlier, Rennie & Associates laid off 31 team members—about 25% of its head office staff—citing pressures from geopolitical, economic, and other factors.
These are not isolated events. More companies across the sector are quietly releasing staff. These layoffs represent more than internal cost-cutting—they affect potentially hundreds of workers and their families. And mentioned in my recent interview with Derrick Penner of The Vancouver Sun, the ripple effect is significant: as projects slow or halt, the steady stream of jobs that power our housing economy—from development professionals and project consultants to on-site trades, suppliers, and service providers — are affected. Getting homes into production sustains employment across a vast ecosystem, and when that momentum breaks, the effects are felt widely. And with ambitious housing targets set forth nationally, governments need to explore all avenues to support the construction industry.
This is what our industry has been warning about: the housing crisis isn’t just about affordability—it’s about the viability of the people and businesses who build homes. The crisis economic signals we’re now seeing are a direct consequence of inaction or delays in removing barriers to delivery.
LETTER TO THE PRIME MINISTER
As mentioned in last week’s MMB, HAVAN joined BILD GTA, CHBA National, and other homebuilders’ associations and member companies across Canada in sending an open letter to Prime Minister Carney, calling for urgent federal action. Key recommendations include modernizing Canada’s GST rebate system to reflect today’s pricing and removing tax burdens on under-construction and unsold inventory to reduce carrying costs and free up capital for new starts.
MULTI-PRONGED APPROACH
A tool worthy of consideration: rethinking Canada’s ban on foreign homebuyers. Enacted on January 1, 2023, and extended through January 1, 2027, the Prohibition on the Purchase of Residential Property by Non-Canadians Act was meant to protect Canadian access to housing. While the intention is understandable, the current broad-brush form of the ban also limits access to foreign capital that could help builders meet presale thresholds and finance new construction. Although a reconsideration of this act may not be popular, it doesn’t have to be an ‘all or none’ policy — with the Act on an extension basis, there may be an opportunity to start looking at how it could evolve before the next deadline.
Australia offers an interesting potential policy model. Its foreign investment framework allows foreign buyers to purchase new builds under specific conditions—such as holding units for rental, or limiting resale for a period of time. Canada could explore a similar approach—allowing foreign buyers to invest in new construction only, provided the units contribute to the rental housing supply or are held post-occupancy. This would protect Canadians’ access to housing while also supporting the economic viability of new development.
To move forward, we must acknowledge that there is no single silver bullet. A healthy housing system will require a multi-pronged approach—from tax reform to permitting efficiencies, from development cost flexibility to capital strategies like surety bonds or presale tools, as highlighted in last week’s Monday Briefing. Governments at all levels are working on aspects of this puzzle, but the real-world signals—layoffs, stalled projects, shrinking pipelines—show that time is off the essence.
The policy frameworks discussed last week—especially the moves by Ontario to limit studies, reduce DCs, and defer payment timelines—show that change is possible. But change must move from policy papers to on-the-ground impact, and fast.
The housing system doesn’t just produce homes—it sustains jobs, communities, and opportunity. The headlines of today are a call to action. Let’s ensure our response meets the moment.
OPPORTUNITY KNOCKS: Rebuilding Consumer Confidence
While much of the industry narrative has rightly focused on affordability challenges, financing obstacles, and policy reform, it’s important to recognize that amid the disruption, there is also opportunity—particularly for those in a stable financial position and ready to enter the housing market.
With the current slowdown in presales, inventory is up, competition is down, and pricing is more negotiable. Some builders have also provided additional incentives to spur purchasers to get off the sidelines. This is a buyers’ market, with more time and options available as they look to purchase a new home.
SHIFTING PERSPECTIVE
This isn’t about driving urgency—it’s about shifting perspective. A housing market cannot function without demand, and one of the invisible barriers builders are facing today is a lack of consumer confidence. When buyers are unsure about timing, interest rates, or broader market stability, it slows the entire delivery cycle. Without early buyers, pre-sale targets aren’t met. Without those pre-sales, financing stalls. And without financing, construction doesn’t start. It’s a chain reaction that ends in headlines like Wesgroup’s.
Encouraging confidence among informed buyers is part of the solution. When projects can move forward, it supports jobs, accelerates supply, and helps moderate prices through increased availability. Builders are ready—and so are many of the homes they’ve already planned.
There’s no question that broader affordability needs to improve, but for those who are ready today, this quieter market phase offers access and choice. Reframing this as a moment of opportunity helps build momentum—and momentum supports the entire housing ecosystem.
DIFFERENT SECTOR, SAME ISSUE. BIG WIN
If you have been keeping an eye on the case of Lorval Developments and Martini Film Studios vs. the Township of Langley regarding the legality of the municipality collecting Community Amenity Contributions for rezoning to allow a major sound stage facility, the judge delivered their decision late last week.
HAVAN continues to work with CHBA BC and CHBA to advocate for all levels of government to work together to address the challenges of the housing industry including zoning restrictions, density limits, and NIMBYism.
Looking to stay up-to-date on Metro Vancouver’s residential housing industry? Sign up for Wendy’s weekly Monday Briefing and other HAVAN emails here.
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