It's time for municipal governments to lower the regulatory burden on construction of new housing

📆 7/22/2022 6:22 PM
📰 nationalpost

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If cities are serious about building new, affordable housing they should cut development charges and fees, argues a new report from the Canada Mortgage and Housing Corporation. realestate cdnecon

The municipal regulatory burden imposes direct costs on new home construction as well as indirect costs because it lengthens the time it takes to obtain regulatory approvals. The direct regulatory charges for a typical new residential dwelling alone can add up to $180,000 per dwelling in construction costs in places such as Markham, Ont.

The report found that despite municipal governments’ stated preference for high-density developments, they imposed more significant development charges and density bonuses on high-density construction relative to low-density construction. If municipal governments are serious about promoting the missing middle type of housing, they can make a difference by reducing the regulatory burden on the construction of such housing types.

Markham stands out for high development fees in absolute and per-square-foot terms. Construction costs for row housing in the city could be 34 per cent lower without government charges. Furthermore, Markham imposes 160 per cent higher development charges for low-rise rental construction than for single-detached housing.

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Wow - quite the conclusion!

Because then developers will sell for below the market price, that's how economics works right

So, this is just a reason to hand those developer charges to developers? Or do the incredibly naïve people who wrote this think Developers will start lower housing prices? regionomics

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It's time for municipal governments to lower the regulatory burden on construction of new housingDevelopment fees and charges in some of Canada\u0027s largest cities are only escalating already high home prices. Read more here No thanks. Not until the industry grows the fuck up and brings their prices back down to reality. A better option would be to create new Crown Corporations that help citizens build their own 'Sears Catelogue Homes'. It wasnt regulation that destroyed this industry. It was you. And transfer the costs of infrastructure to support this new housing to taxpayers? Thought development charges was to have development pay for development: a provincially-sanctioned policy. onpoli ottcity Ottawa ottnews How about stopping immigration for two years and reducing the 2.7 processing backlog? 400,000 people came since 2016 and more every year. Do the math. They all need places to live.
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