Mr. Speaker, it is an honour to rise on behalf of the residents of Vaughan—Woodbridge and Canadians all across this country, the young, the old and everyone in between, who do not need to be told that there is a housing crisis. They can see the fact that there is a housing crisis clear as day. They see it in the listing prices. They see it in the rent that is consuming half their paycheques. There are young adults living in their parents' basements, unable to leave those homes. Families, young people, are seeing this in delayed family plans.
After a decade of having the Liberals in government, housing prices have doubled in this country and home ownership is increasingly out of reach. For young people in Canada, they are the first generation less likely than their parents to own a home. Eighty-eight per cent of renters say that they feel they will never own a home. It is just a dream somewhere far off in the distance. Half of millennials and two-thirds of gen Zs are delaying starting a family. Youth unemployment has reached record levels at 14.7%, and a generation has been locked out of work and housing.
However, this crisis is not just specific to the young. Slower growth, weaker retirement security, the cost of living and the cost of housing affect everyone. They put pressure on a construction industry that employs hundreds of thousands of people all across Canada. There is a dream in Canada of home ownership, and it is more than a dream. For many people, it is a rite of passage. For many people, it signifies the transition from childhood to adulthood, and that dream is eroding.
The Building Industry and Land Development Association, or BILD, just the other week said that there are only 269 homes that have been sold in the GTA. That is down 36% year over year, and 80% below our 10-year average. Typical January sales in 2026, for example, are 1,300 sales or more. Canada Mortgage and Housing Corporation, CMHC, has said that housing starts are down 15% in January, and it sees construction declining through 2028. It argues that 2026 might be the weakest year in decades.
Builders are hesitant to build due to the rising uncertainty in the market and the rising uncertainty with government policy. Let us take a look at what some of the building associations are saying. Kevin Lee from the Canadian Home Builders' Association says that the biggest barriers to our housing development are development charges, permitting delays and insufficient processes.
Let us look at the municipal fees. They have completely skyrocketed. They are up $27,500 on average since 2022. The average is now $82,600. Some cities cite as much as $200,000 per home. I have heard from people in the industry, as I am sure many others have, that we are now looking at approximately 33% of the list price of a home in government development fees, taxes, levies and red tape.
Approval timelines are another hurdle preventing builders from building. It is nearly one year for a permit, on average. Thirty-plus studies are being required in some municipalities. Delays equal higher borrowing costs for developers, and higher borrowing costs equal higher prices. New home sales are down roughly 90% since 2021, and as I mentioned earlier, construction jobs are at risk. That is the backdrop in which we are discussing Bill C-20.
Bill C-20 does not address any of these issues I laid out. What it would do is create a new Crown corporation that would have sweeping powers to acquire land, invest in housing ventures and provide loans and financial assistance. The government plans to spend $13 billion over five years: $11.5 billion for Build Canada Homes and $1.5 billion for Canada Lands Company. That is the third housing agency and fourth federal bureaucracy.
The central problem with this plan, as the minister himself admitted, is that there are no actual top-line targets. An economist at the Ivey Business School, Mike Moffatt, has said there are no key indicators in place. He has never seen this before. There is no clarity on price points or on what the target should be. The PBO said that only 26,000 units will be built over five years. That is 26,000 units in a country that needs hundreds of thousands of homes per year.
What does Bill C-20 not do? It does not cut development charges or assist municipalities with cutting development charges. It does not reduce approval timelines. It does not tie infrastructure to housing results. It does not cut the GST for all buyers on new homes. It certainly does not eliminate the capital gains tax on reinvestment or remove a single study requirement, or remove or reduce a single municipal fee.
Instead, it centralizes more authority in Ottawa and expands the federal footprint, adding yet another layer of government. The problem we are facing here is simple. It is the cost of building: the development charges, the industrial carbon tax that is impacting material costs, the endless regulatory layering, the approval delays and the lack of clarity. Builders want less government in the way, not more. What has the government's response been? It is that they have a bureaucracy that will solve that problem, which seems to be a common theme with the Liberal government.
What would we do? The Conservative approach would be tied directly to results. We would tie infrastructure funding to 15% annual increases in homebuilding. We would cut development charges by 50%, and we would cut the GST on all new homes under $1.3 million. This would save families $65,000, approximately, on a purchase. We would also end capital gains on reinvestment in new housing to spur the economy.
If we look at the bigger picture, housing starts are less than half of what is needed to restore affordability. From 2022 to 2031, it is predicted we will see the fewest homes built per person since 1972. This is a crisis that is built layer by layer, with rising taxes, rising fees, rising delays and rising uncertainty. All of this creates conditions in which development will not foster and will not spur, and developers will not build. Everyone is feeling this and everyone is paying: young Canadians, families and retirees.
What we need to do is contrast this bill, which reorganizes authority, expands spending, lacks measurable targets and does not confront structural barriers, with what the Liberal government needs to do. It needs to adopt our plan and target structural reform. We see this time and time again when we are talking about various areas of policy in this country. We have structural issues facing our country, such as regulatory hurdles and the tax framework, all these things that need to be revamped significantly to get the economy moving.
We have the workers. We have the materials, and we have the capital. We need a government that is willing to work with us to remove these barriers. Canadians deserve measurable targets, lower costs and real supply growth, and they deserve a path to ownership. That is the social contract in this country: People want to own their homes. Government can partner with municipalities to make these things happen. It can partner with the provincial governments and work together to remove some of the costs impeding the growth of this sector. It is long past due that we have a change in direction.
What we do not need is more recycled policy. We do not need to see the same approach over and over again. We certainly do not need more government bureaucracy and more government spending. Housing must be restored for an entire generation of Canadians that feels left out.