Ontario delivers $1.5B to cut Toronto development charges
The province will fund a 40 to 60 per cent reduction in development charges, aiming to speed housing construction and improve affordability.
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Ontario announced $1.5 billion in funding for Toronto to facilitate a 40 to 60 per cent reduction in development charges—a major cost driver in new housing. The move aims to accelerate construction of much-needed homes and improve affordability, particularly for missing middle housing.
Development charges are among the largest government-imposed costs built into the price of new housing in Ontario and can account for up to 20 per cent of a home's purchase price. Homebuyers and renters ultimately bear those costs, which have contributed to worsening affordability and slower housing construction across the Greater Golden Horseshoe.
The Toronto Regional Real Estate Board welcomed the announcement, calling it the type of leadership needed to lower housing costs, improve project viability, and support new housing supply. The board has consistently advocated for lower upfront development costs as one of the most effective ways to improve affordability.
The funding represents collaboration between Prime Minister Mark Carney, Premier Doug Ford, and the City of Toronto.