Report: Builders in Ontario Face Barriers that Hinder Home Development

According to a recent report by the Fraser Institute, several barriers are hindering homebuilders in Ontario, potentially leaving buyers out of the real estate market due to a lack of supply.

Mr. Lafleur highlighted five main barriers faced by homebuilders.

Fees and Taxes

The high costs associated with fees and taxes can be burdensome for builders, including application and permitting fees, development charges, parkland dedication, and community benefits charges.

For instance, the report mentioned per-unit fees for high-rise building developments in the Greater Toronto Area ranging from $46,412 to $121,562.

Mr. Lafleur suggested potential reforms such as implementing maximums, reviewing services, and exploring alternative financing models.

Building Requirements

Government regulations often limit building sizes and types through zoning bylaws or design guidelines. For example, land developers may be required to build single detached homes.

It was recommended to consider reforms to these requirements, aligning permitted units with infrastructure capacity, relaxing property dimension rules, and updating plans to meet demand.

Land Costs

Developers face significant costs for land acquisition, with government-imposed restrictions on urban growth affecting land markets. Recommended solutions include relaxing urban containment policies and exploring controlled land releases.

Additional Costs

Housing developers encounter high levels of staffing and holding costs, exacerbated by long wait times for permit approvals in Ontario. Streamlining the development approval process through digital portals could expedite timelines and reduce costs.

Uncertainty

The government approval process for home development introduces uncertainty and may necessitate mid-project changes, discouraging developers. Addressing these challenges by integrating official plan development into community engagement processes can minimize ongoing consultations.

“By reducing or removing barriers to development, governments in Ontario can help address the province’s housing crunch and increase affordability for families across the province,” Mr. Lafleur concluded.

The Epoch Times reached out to the City of Toronto and Ontario’s housing minister for comment but did not receive an immediate response.