As real estate sales in Ontario continue their downward spiral, big developers are asking the government for help in the form of tax breaks that they promise would translate to lower prices for buyers, and thus renewed sales activity.

Firms have teamed up to form a new organization, deemed the Coalition Against New-Home Taxes (CANT), to request that both the Province and feds cut some of the fees impacting new construction and those behind it.

Among their asks are a substantial reduction of development fees, which have jumped 1,200 per cent in 15 years, as well as the complete axing of HST charges on new condo projects, as is already the case for rental projects.

Toronto is overrun with homes for sale that no one is buying because prices are still sky-high https://t.co/roZyJt8w1p

— blogTO (@blogTO) July 4, 2024

They also want leaders to get rid of Ontario's lofty land transfer tax, which is the highest in the country (depending on home price). New homeowners in Toronto specifically also get dinged with an additional municipal LTT, which can be extremely prohibitive given the city's already sky-high real estate prices.

In exchange, the companies say they would transfer the savings that come as a result of the tax breaks right onto consumers.

It's very simple condo developers. Reduce your selling prices by 10-15% and you'll make a lot of sales!

— Shrinkflation_Terminator 🇨🇦 (@Shrinkflation52) July 27, 2024

"We came to the realization that something's got to change and we started thinking about creative ways to bring government to the table to have an honest conversation and find solutions together," the heads of the coalition, which is comprised of 18 development companies, said to the Canadian Press Thursday.

"We feel that one way to do that would be to sign a pledge that says for every dollar of taxes cut, this group of developers would cut their prices dollar for dollar to ensure that savings are passed on to homebuyers."

Their plea also sheds some insider light on the dire nature of the province's dwindling sales volumes and stubbornly high prices, which have prompted developers to pause dozens of in-progress complexes that were on track to launch over the last few years.

Still our gov is not willing to lower fees and taxes on new constructions 🤦‍♂️🤦‍♂️

— DeConditioned (@DConditioned) July 26, 2024

"You can't sell [housing in Ontario] low enough to get sales and still make money, and if you can't make money or can't meet a certain margin, banks won't finance your projects, which means all projects for the most part are pretty much stalled," they write.

"To solve the affordability crisis today, your governments must take bold action to make homes cheaper to build and cheaper to buy."