Despite recent progress, municipal and provincial policies still impede new home construction in Ontario

VANCOUVER—Despite progress by various municipalities and the provincial government, significant impediments to homebuilding remain in Ontario, finds a new study published today by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.

“The high cost of housing remains a major concern for Ontarians, and government barriers, both municipal and provincial, to home construction remain part of the problem,” said Steve Lafleur, senior fellow at the Fraser Institute and author of Barriers to Housing Supply in Ontario and the Greater Toronto Area.

Barriers to home construction in Ontario include:

• Onerous building requirements: These include zoning bylaws and design guidelines that restrict building opportunities—for example, certain land zoned for residential use may allow only single-detached homes.
• Costs of approval timelines: Individuals and firms wishing to build in Ontario often endure long wait times for permit approvals from various government departments, which increases the costs of building.
• High land costs: Several provincial policies restrict land available for development, which increases prices for remaining land and drives up overall housing costs.
• High development fees: Local governments levy fees including application and permit fees and “community benefits” fees, which all drive up the cost of housing development. Per-unit fees for high-rise units in the GTA ranged from $46,412 to $121,562 in 2022.

“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,” Lafleur said.

Media Contact:
Steve Lafleur, Senior Fellow, Fraser Institute

To arrange media interviews or for more information, please contact:
Mark Hasiuk, Fraser Institute
604-688-0221 ext. 517
mark.hasiuk@fraserinstitute.org

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