A new report from the Toronto Region Board of Trade is raising serious concerns about the impact of development charges on housing affordability in the GTA. The report, titled “Priced Out: The High Cost of Development Charges,” reveals that these fees have surged by 176% since 2011, adding tens of thousands of dollars to the cost of new homes. CMHC data suggests development charges can represent 8-16% of a new condo’s price and up to 9% of a detached home’s cost in Toronto.
The Board of Trade is advocating for sweeping reforms, including modernizing the Development Charges Act, narrowing eligible spending, and exploring alternative funding models for infrastructure. They propose removing water and wastewater from development charges, potentially cutting fees by 30-50% in some municipalities. With municipalities facing up to $290 billion in infrastructure needs, the report argues that current funding mechanisms are insufficient and threaten the GTA’s competitiveness. Read the full report on mpamag.com to learn more about the proposed solutions and their potential impact on the GTA real estate market.
Read the original story here: https://www.mpamag.com/ca/mortgage-industry/industry-trends/gta-development-fees-under-fire-as-report-warns-of-priced-out-generation/559528
