Ontario's home building approval processes have not improved, and urgent action is needed on this front now, not tomorrow.The housing supply and affordability crisis is big news these days – and rightly so. Without adequate housing, individuals and families will end up leaving our cities and our economy will suffer.
According to modeling done by the Canadian Centre for Economic Analysis, Ontario needs 1.78 million homes over 10 years while the Canada Mortgage and Housing Corporation reckons 1.85 million homes are needed to get prices down to 2003-04 levels when the average house cost $500,000.Last year, the residential construction industry in Ontario built about 96,000 new units. Traditionally, the industry has averaged about 75,000 units a year.
We must also remove the stigma around the trades and get parents and educators to realize that the trades are a great career option. Not everybody wants to pursue a post-secondary education. The trades are perfect for those who prefer to work with their hands – and they get to earn while they learn. Meanwhile, for the situation to truly change, it must be understood that the residential development industry and builders are not the enemy. They are the partners for a solution.
The more complex the approvals process, the slower it moves. As a result, it takes much longer than it should to get a project approved. A report by the Canadian Centre for Economic Analysis found that taxes, fees and levies on a new house or condo now account for 31% of the cost. So, for example, if you’re buying a $1M home, $310,000 goes to taxes, fees and levies. Development charges on a two-bedroom condo in Toronto a decade ago were about $8,000 but today they’re $88,000. These disproportionate increases have inflated prices which are then handed down to owners and renters.