Ontario's residential construction faces a severe downturn with falling sales, stalled projects, and worsening affordability locking out middle-class families. A proposed three-year HST holiday on new homes up to $1.3 million could preserve 26,000 jobs, boost GDP by $3.9 billion, and increase housing starts, potentially being revenue neutral. Without action, housing starts could drop by 21,500 annually, worsening the supply crisis and economic impact.