The Toronto Regional Real Estate Board (TRREB) welcomed the launch of the Ontario–Canada Development Charges Reduction Program, calling it a major step toward lowering housing costs, improving project viability, and accelerating the construction of much-needed homes across the Greater Golden Horseshoe.
The program is part of the broader Ontario–Canada Partnership to Build, a cost-matched commitment of up to $8.8 billion over 10 years to support housing-enabling infrastructure. Funding will be prioritized for municipalities that reduce residential development charges by 30 to 50 per cent or more and maintain those reductions for at least three years.
Development charges are among the largest government-imposed costs built into the price of new housing in Ontario and can account for up to 20 per cent of a home’s purchase price. Homebuyers and renters ultimately bear those costs, and they have contributed to worsening affordability and slower housing construction across the Greater Golden Horseshoe. TRREB has consistently advocated for lower upfront development costs as one of the most effective ways to improve affordability and support new housing supply.
The City of Vaughan’s recent decision to temporarily reduce residential development charges to zero is a strong example of the kind of municipal leadership needed to speed up housing construction and improve affordability. The new provincial-federal program gives municipalities across the Greater Toronto Area (GTA) and Simcoe County a meaningful opportunity to adopt similar measures while continuing to invest in essential infrastructure and community services.
TRREB urges the City of Toronto and municipalities across the GTA and Simcoe County to move quickly to participate in the program and make full use of this funding opportunity.
“At a time when housing starts are falling and affordability challenges remain severe, all levels of government must continue working together to remove barriers to homebuilding,” said TRREB President Daniel Steinfeld. “This program has the potential to lower costs, attract investment, unlock stalled projects, and help bring more homes to market faster. We thank Prime Minister Mark Carney, Premier Doug Ford, Minister Peter Bethlenfalvy, Minister Rob Flack, and Minister Gregor Robertson for their collaboration on this important initiative.”