Developers across Canada are pressing municipalities to speed up the approval process for new housing projects as the demand for homes continues to outpace supply. A recent report from the Building Industry and Land Development Association (BILD) highlights a significant lag in the construction of new homes in the Greater Toronto Area (GTA), where the gap between housing availability and population growth is the widest it has been in over 50 years. This delay in approvals is a major contributor to the ongoing housing crisis.
On average, it currently takes about 20 months for municipalities in the GTA to approve new housing projects. Each month of delay can add between $2,673 and $5,576 to the cost of each unit, ultimately increasing the price of a new home by $43,000 to $90,000. Developers are calling for local governments to streamline their processes to help alleviate these rising costs and meet the growing housing demand.
The study also reveals that fees, taxes, and charges imposed by municipalities account for nearly 25% of the total cost of new homes. Since 2022, municipal fees have surged, adding an average of $42,000 for low-rise and $32,000 for high-rise developments. Developers argue that reducing these financial burdens and accelerating approvals could significantly enhance housing affordability in the region.
As the GTA faces an urgent housing crisis, industry leaders warn that without immediate action from governments, the situation will worsen, resulting in fewer housing starts and exacerbated affordability issues. The need for efficient and effective housing solutions is critical as the population continues to grow.
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