{"id":27875,"date":"2026-06-09T11:11:47","date_gmt":"2026-06-09T18:11:47","guid":{"rendered":"https:\/\/www.roryc.ca\/blog\/?p=27875"},"modified":"2026-06-09T08:58:34","modified_gmt":"2026-06-09T15:58:34","slug":"reducing-or-eliminating-the-development-fees-could-boost-housing-starts-14","status":"publish","type":"post","link":"https:\/\/www.roryc.ca\/blog\/2026\/06\/reducing-or-eliminating-the-development-fees-could-boost-housing-starts-14\/","title":{"rendered":"Reducing or Eliminating The Development Fees Could Boost Housing Starts 14%"},"content":{"rendered":"<p style=\"text-align: justify;\">Scrapping municipal development charges could increase housing starts by as much as 14% in some of Canada\u2019s most expensive housing markets, according to new analysis from Canada Mortgage and Housing Corporation.<\/p>\n<p style=\"text-align: justify;\">The federal housing agency said reducing or eliminating the fees would make more construction projects financially viable, especially in cities where high costs have made new housing harder to build.<\/p>\n<p style=\"text-align: justify;\">\u201cNew analysis shows reducing or eliminating development charges could increase viable projects by up to 14% in some cities,\u201d said CMHC\u2019s Housing Observer report.<\/p>\n<p style=\"text-align: justify;\">Blacklock&#8217;s Reporter says the report said eliminating development charges could increase housing starts by 14% in Burnaby, BC, 10% in Vancouver and Toronto, and 3% in Ottawa.<\/p>\n<p style=\"text-align: justify;\">A 50% reduction in the charges would produce a smaller but proportional impact, CMHC said.<\/p>\n<p style=\"text-align: justify;\">\u201cReducing development charges increases the viability of housing construction projects in all cases,\u201d said the report, Development Charges: Not All Cities Are Created Equally.<\/p>\n<p style=\"text-align: justify;\">\u201cHowever in cities where housing markets are more financially constrained, it\u2019s harder to develop financially viable projects.\u201d<\/p>\n<p style=\"text-align: justify;\">Development charges are mandatory fees levied by municipalities on new construction and are often used to pay for infrastructure and services. Builders have long argued the fees are passed on to buyers and renters, adding tens of thousands of dollars to the cost of new homes.<\/p>\n<p style=\"text-align: justify;\">A 2024 Municipal Benchmarking Study by the Canadian Home Builders\u2019 Association found development charges averaged $78,000 in Ottawa, $93,000 in Calgary, $104,300 in Vancouver, $112,000 in Saskatoon and $195,300 in Toronto.<\/p>\n<p style=\"text-align: justify;\">The Senate banking committee also criticized the fees in a January 20 report, Out Of Reach : Unlocking Canada\u2019s Housing Affordability Crisis, saying development charges were a major obstacle to faster homebuilding.<\/p>\n<p style=\"text-align: justify;\">Senators endorsed a Conservative proposal to require municipalities to roll back development charges as a condition of receiving federal housing aid.<\/p>\n<p style=\"text-align: justify;\">Municipal fees were \u201ca significant cost barrier, preventing a much-needed acceleration in housing construction,\u201d the committee wrote.<\/p>\n<p style=\"text-align: justify;\">The Canadian Human Rights Commission also called for federal action on development charges in a May 22 report, Building Homes, Upholding Rights : A Human Rights Approach To Housing Agreements.<\/p>\n<p style=\"text-align: justify;\">\u201cCanada has an alarming housing crisis,\u201d said the commission.<\/p>\n<p style=\"text-align: justify;\">The commission said there are \u201ccurrently no legal mechanisms to hold any level of government in Canada legally accountable\u201d for increasing housing supply.<\/p>\n<p style=\"text-align: justify;\">\u201cOver 4.8 million homes are needed to restore affordability, rents are rising in double digits in most major cities and homelessness continues to grow,\u201d it wrote.<\/p>\n<p><a href=\"https:\/\/www.westernstandard.news\/news\/cmhc-says-development-charge-cuts-could-boost-housing-starts-14\/73993\" target=\"_blank\" rel=\"noopener\">CMHC Says Development Charge Cuts Could Boost Housing Starts 14<\/a>% by Western Standard<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Scrapping municipal development charges could increase housing starts by as much as 14% in some of Canada\u2019s most expensive housing markets, according to new analysis from Canada Mortgage and Housing &hellip; [<a href=\"https:\/\/www.roryc.ca\/blog\/2026\/06\/reducing-or-eliminating-the-development-fees-could-boost-housing-starts-14\/\">read more<\/a>]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27,13],"tags":[],"class_list":["post-27875","post","type-post","status-publish","format-standard","hentry","category-pre-sale-projects","category-real-estate"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Reducing or Eliminating The Development Fees Could Boost Housing Starts 14% &#8226; Rory C Real Estate | Oakwyn Realty<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.roryc.ca\/blog\/2026\/06\/reducing-or-eliminating-the-development-fees-could-boost-housing-starts-14\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Reducing or Eliminating The Development Fees Could Boost Housing Starts 14% &#8226; 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