Toronto, ON – Today, the Toronto Region Board of Trade released ‘Priced Out: The High Cost of Development Charges’. The report warns that rapidly rising development charges are getting in the way of building new homes, intensifying the housing crisis, and threatening the region’s economic competitiveness. The report offers five bold recommendations to restore affordability, support builders, and ensure municipalities have funding for critical infrastructure.
Municipalities need better funding options to build and maintain the infrastructure that makes housing possible. Over the next decade they must manage 250 to 290 billion dollars in infrastructure needs, including more than 100 billion dollars tied directly to population growth. Current federal and provincial transfers, combined with the 3.5 billion dollars collected annually through development charges, cover only a small share of what is required to support healthy growth.
Development charges are also making it harder for builders to bring projects to market. In 2025 alone, 18 condominium projects have already been cancelled across the GTHA, and housing starts are down 34 percent.
The Board cautions that without urgent action, municipalities will struggle to house the workforce that employers depend on, and families and talent will continue to be priced out.
The report offers five bold recommendations to restore affordability and create a sustainable financing model:
- Modernize the Development Charges Act to create a clear and stable framework that supports affordability and municipal fiscal health.
- Remove water and wastewater costs from development charges so that long lived assets are funded over their lifespan rather than paid upfront by a first time buyer. This could reduce charges in the GTA by 30 to 50 percent.
- Upload transit related development charges to senior governments to recognize transit as a regional public good.
- Expand municipal financing tools so cities have more ways to fund essential infrastructure.
- Rebuild federal and provincial infrastructure partnerships to restore the coordinated funding model that once enabled affordable growth in the region.
“Development charges across the GTA have increased 176 percent since 2011, and tens or even hundreds of thousands of dollars in charges per home are being passed to the next generation, contributing significantly to the affordability crisis. This means that we’re seeing building slow, just as we need it to leap forward. That’s why a full-scale rethink is needed. Vancouver’s proposal to cut development charges by 20 percent shows the kind of bold action needed to spur building. We need that same urgency here, because affordability will not improve until we reform our system too.”
— Giles Gherson, President & CEO of the Toronto Region Board of Trade
The Toronto Region Board of Trade is one of the largest and most influential business chambers in North America and is a catalyst for the region’s economic agenda. We pursue policy change to drive the growth and competitiveness of the Toronto region and facilitate market opportunities with programs, partnerships and connections to help our members succeed – domestically and internationally.
Media Contact
media@bot.com
