Building Industry and Land Development Association (BILD), a Canadian advocacy organization, identified a widening gap between the demand for homes within the Greater Toronto Area and housing starts, with a drop from 2,428 housing start applications in 2021 to 1,225 in 2024, in its report issued on Monday.
The report reviewed the number of build applications and housing starts in municipalities across the country to assess the degree of home building, and relevant causes for their approval or delay. It outlined six key findings that highlight ongoing challenges in the Greater Toronto Area housing market:
- Housing affordability has significantly worsened since 2010
- New builds have failed to keep up to population growth levels
- Application submissions to municipal planning boards have dropped significantly
- Timelines for building permits have improved since 2020, but remain exceptionally high
- Delay costs are substantial for developers and investors
- Municipal development fees rose again: by $42000 per unit on low-rise developments, and $32,000 on high-rise developments.
Among the most critical barriers identified were high regulatory and tax burdens, alongside fees associated with excessive delays. Justin Sherwood, BILD’s senior vice president of communications, told local media “fees, taxes and charges account for approximately 25 percent” of the cost of building a home. The report estimates that every month of delay in permit approval can cost a developer between $2673 to $5576 per unit, potentially adding $43,000 to $90,000 in extra costs before project completion.
Despite these challenges, the report noted efforts by the Ontario government to streamline the process of granting permits and reduce barriers to application. Key legislative measures, including Bill 23 and Bill 185, have introduced exemptions for certain units from municipal zoning by-laws and building requirements, such as mandatory parking. These bills also simplify the appeal process for rejected permits.
Housing affordability and habitability are core components of the right to adequate housing, as outlined in Article 11 of the International Covenant on Economic, Social, and Cultural Rights, to which Canada is a signatory. Under Article 11, state parties are obligated to ensure that housing costs do not compromise other basic needs and that homes are safe and suitable for habitation.
Canada currently faces some of the most unaffordable housing in the world, with the 2nd worst income-to-housing cost ratio worldwide. Exacerbating the shortage is the country’s recent surge in population growth–2023 marked the fastest population growth in decades. Simultaneously, significant regulatory hurdles and labor shortages have prevented the construction industry from meeting demand.
