At a time of ongoing housing affordability challenges and broader economic uncertainty, the Toronto Regional Real Estate Board (TRREB) welcomes the signing of the Canada–Ontario Partnership to Build, which introduces a new commitment to reduce municipal development charges. Development charges amount to up to 20 per cent of a home’s purchase price. TRREB has relentlessly advocated for this type of reform and is pleased to see action.
Through a proposed $8.8 billion cost-shared program over 10 years, the Governments of Canada and Ontario have committed to supporting housing-enabling infrastructure, while prioritizing funding for municipalities that reduce development charges by 30 to 50 per cent for at least three years. This approach recognizes the critical role that upfront government-imposed costs play in limiting housing construction and affordability.
Across the Greater Toronto Area (GTA) and Simcoe County, development charges are the highest in Ontario and amount to over $100,000 added to the cost of a new home. These costs are ultimately passed on to buyers and can significantly impact the viability of new housing projects, particularly for entry-level and missing-middle housing.
Given the scale of housing demand and the acute affordability challenges facing the region, TRREB believes that GTA and Simcoe County municipalities should receive a significant share of funding under this program. Targeting support to high-growth, high-cost regions will be essential to maximizing the impact of this initiative on housing supply and affordability.
TRREB also recognizes the leadership of municipalities that have already taken steps to address these challenges. Under the leadership of Mayor Steven Del Duca and Mayor Carolyn Parrish, for example, the Cities of Vaughan and Mississauga have taken action to reduce development charges, demonstrating a proactive approach to improving housing affordability. This program should be structured to support and expand these types of local initiatives across the GTA.
When combined with the proposed enhanced 13 per cent HST New Housing Rebate announced last week, capped at $130,000 in HST savings for all homebuyers, these measures will directly reduce the cost of building and purchasing a home. Together, they represent a coordinated approach to improving affordability while creating the conditions needed to accelerate housing supply across the region.
TRREB would like to acknowledge the leadership of Prime Minister Mark Carney and Premier Doug Ford in negotiating this important agreement. In addition to support for new housing, the partnership also commits funding to vital new GTA transportation projects that are critical to easing gridlock and helping residents get around the region more easily.
Daniel Steinfeld
President
Toronto Regional Real Estate Board