May 31, 2004 - Industry Pumps Almost $2 Billion into Ontario Coffers
January 18, 2005
May 31, 2004
Home Building and Renovation Pumps Almost $2 Billion into Ontario Coffers -
Record 448,000 Jobs Generated Last Year
TORONTO – New home construction and home renovation in Ontario generated a record 448,000 jobs and contributed almost $2 billion ($1.99B) to the Ontario treasury last year through income, sales and land transfer taxes, according to a just released economic analysis by Will Dunning Inc. Economic Research, for the Greater Toronto Home Builders' Association.
Industry revenue in Ontario jumped in 2003 by 19 per cent from $1.67 billion in 2002. Jobs increased to 447,846, up four per cent from 430,322 in 2002.
The POWERHOUSE study revealed that more than half the jobs (245,000) and revenue ($1.1 B) were generated in the Greater Toronto Area.
“The provincial government is facing a $2.2 billion deficit for 2004-2005,” said association president Mark Parsons. “What better way to keep the deficit under control than to ensure a robust economy by nurturing industries that produce such significant and widespread economic results.”
Parsons noted that record sales of new homes in the GTA over the past several years have improved the prosperity of Ontarians. “Because each new home we start creates the equivalent of 3.3 full-time jobs for one year, we generated more than 168,000 jobs last year,” he said. “Renovation activity spun-off a further 77,000 jobs,” Parsons added.
The $10.4 billion in wages earned by those directly and indirectly employed in home construction and renovation in the GTA contributed almost $18 billion to Canada’s gross domestic product. All levels of government also benefited from the more than $5.43 billion in taxes the GTA home building and renovation industry paid in 2003.
“With these new numbers, provincial policy makers will appreciate the vital importance of our industry not just to house people, but to generate jobs and taxes at a time when other industries are faltering,” Parsons added.
“The direct total economic impact from residential construction last year amounted to 5.4 per cent of Ontario’s gross domestic product. Contributions of this magnitude go a long way to helping the province meet its goals of improving education, health care and its other priorities,” Parsons said.
Recent provincial policies to restrict the supply of land for development could undermine the economic impact of the industry. They are already forcing land prices and housing prices higher, raising concern that there will not be adequate or affordable homes for the 90,000 to 100,000 newcomers expected in the GTA each year for the next three decades.
Major increases in municipal development charges and fees throughout the GTA are also significantly adding to higher house prices. Various local and regional governments in the GTA collected almost $700 million in development charges and permit fees last year.
The POWERHOUSE research found that on a national basis, new home building and renovation generated 1.13 million jobs, $45 billion in wages and $79 billion in GDP, while contributing $22 billion in taxes, fees and levies to the various levels of government.
To view the GTHBA’s POWERHOUSE publication online, please click here.
GTHBA’s POWERHOUSE publication will be delivered by courier today.
Newly-shot construction TV B-Reel will be delivered to TV stations today.