An Ottawa economist is calling for a major overhaul of how new homes are taxed in Canada, arguing that current development fees are crippling affordability, especially in markets like the GTA. Mike Moffatt from the University of Ottawa’s Missing Middle Initiative, argues that these fees, along with sales and land transfer taxes, disproportionately burden first-time buyers and renters.
New CMHC data reveals the extent of the problem, with development charges on a two-bedroom apartment ranging from $39,600 in Ottawa to a staggering $121,500 in Markham. This disparity can add 8-16% to new condo prices. Moffatt proposes financing infrastructure through government bonds and revenue-backed models to cut interest costs. He also criticizes the current approach to zoning and building codes, which he says has effectively “legislated” family-sized starter homes out of existence.
This article highlights the growing concerns about the impact of development fees on housing affordability in the GTA. To delve deeper into Moffatt’s proposals and the potential solutions, read the full article on mpamag.com.
Read the original story here: https://www.mpamag.com/ca/mortgage-industry/industry-trends/ottawa-economist-targets-alphabet-soup-of-fees-in-2026-housing-wish-list/560861
