For Ontario’s community housing providers, procurement has never been simple, but the past year has introduced a new level of complexity.

We’ve heard from ONPHA members that they are navigating rising costs, shifting supplier dynamics, and new procurement requirements, all while working within fixed budgets and responding to growing demand for housing.

So, what’s changing, and how can community housing providers respond?

A changing cost landscape

There’s no single driver behind today’s cost pressures. It’s a combination of factors moving at once.

Earlier this year, changes to U.S. tariffs helped reduce costs in some categories. At the same time, global events continue to influence oil prices, affecting fuel and delivery costs. The removal of the consumer carbon tax has provided some relief, but suppliers are also introducing price increases to manage their own rising expenses.

With inflation pressures mounting (currently hovering around 2.5% with the possibility to increase further) many non-profit housing providers are still seeing 5–10% increases in non-contracted spending.

This is where many organizations feel it most. Purchases made outside of contracts tend to be the most exposed to price volatility and frequent increases. For organizations already working within tight margins, those increases add up quickly.

Why predictability matters more than ever

Community housing providers rely on stability to plan effectively. Budgets are often locked in well in advance, and unexpected cost swings can quickly create operational challenges.

This is especially true when it comes to maintenance and repairs, utilities and fuel-related costs, and capital planning.

Without stable pricing or a clear procurement strategy, even small fluctuations can have outsized impacts. That’s why many providers are looking for ways to bring more consistency into their purchasing, whether through stronger supplier relationships, better planning, or access to pre-negotiated contracts.

Policy changes housing providers should know

Alongside market pressures, the policy landscape is evolving.

Recent updates to Ontario’s Broader Public Sector (BPS) Procurement Directive introduce new requirements that may apply to many housing providers, including:

  • Increased emphasis on purchasing from domestic suppliers (“Buy Ontario”) 
  • Restrictions on the use of U.S.-based vendors 
  • New considerations for vehicle procurement, tied to supporting Ontario’s auto sector as well as purchases related to capital infrastructure projects.

These changes underscore the importance of reviewing your organization’s procurement policies and ensuring alignment with current requirements.

For providers navigating these updates, having access to procurement guidance and compliant purchasing options can help reduce risk and administrative burden.

Practical steps housing providers can take

While there’s no one-size-fits-all solution, there are clear strategies that can help providers navigate this environment:

1) Lean into contracts

Where providers are seeing the most protection from price increases is through contracted pricing. Through ONPHA Enterprise, our collaborative procurement solution designed for Ontario’s housing providers, contract terms are already in place and actively managed, helping members stay ahead of market changes.

2) Stay proactive on policy compliance

Understanding whether your organization falls under BPS and what that means in practice is key. Procurement policies may need to be updated to reflect new provincial requirements. ONPHA Enterprise also supports members with guidance to help align with these evolving expectations.

3) Keep a close eye on variable costs

Fuel and delivery surcharges can quietly impact budgets. Tracking, questioning, and managing these charges is becoming increasingly important.

4) Don’t delay preventative investments

Delaying maintenance or capital planning often leads to higher costs down the line. Building condition assessments, asset management planning, and equipment audits are all ways to stay ahead of more expensive repairs. Many Enterprise suppliers support this kind of proactive work, helping providers plan, not just react.

5) Leverage shared knowledge and tools

You’re not alone in navigating these challenges. More providers are turning to collaborative approaches that reduce duplication, save time, and strengthen purchasing power.

A more coordinated approach to procurement

We’re seeing growing interest in collaborative procurement. Not only is it a cost-saving tool, it’s also a way to bring more structure and consistency to purchasing.

ONPHA Enterprise was designed with this in mind. It connects housing providers to:

  • Pre-negotiated contracts with trusted suppliers 
  • Ongoing contract management that responds to market changes 
  • Support with procurement best practices and policy alignment 
  • Guidance on navigating BPS requirements and “Buy Ontario” considerations 

Since launching just a few years ago, ONPHA Enterprise has grown to include more than 250 members, with over $5 million in spending through preferred suppliers in 2025 alone.

What we hear most from members is the day-to-day impact: less time spent sourcing and negotiating, fewer surprises in pricing, and more confidence in procurement decisions.

If the past couple of years has shown anything, it’s that procurement conditions can shift quickly and often without much warning.

Ontario’s housing providers are used to adapting. But in a more volatile environment, taking a proactive and strategic approach to procurement will be increasingly important. ONPHA Enterprise is one of the ways ONPHA is supporting members through that shift, helping bring greater predictability, reduce pressure on staff, and make procurement a lot more manageable.

 

ONPHA members can sign up for the ONPHA Enterprise program, powered by our trusted partners at Round Table Procurement Services,  at any time.

Not a member? Join us today to access ONPHA Enterprise and a range of other sector supports.

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