Housing Affordability Remains a Key Issue for Ontario Voters
As Ontario’s provincial election on February 27 approaches, housing affordability continues to be a top concern for many residents—just as it was in the 2022 election.
Soaring home prices and rental costs have made it increasingly difficult for Ontarians to buy or rent a home, prompting voters to closely examine how each political party plans to tackle the crisis.
Ford’s 1.5 Million New Homes Promise Faces Major Challenges
During the 2022 election, Premier Doug Ford and the Progressive Conservative Party pledged to build 1.5 million new homes by 2031, following the recommendations of Ontario’s Housing Affordability Task Force.
However, this ambitious goal has faced significant setbacks, including:
✔ Rising interest rates set by the Bank of Canada, making borrowing more expensive
✔ Supply chain disruptions caused by the pandemic, increasing material costs
✔ Higher construction costs and declining buyer demand due to high mortgage rates
As a result, many new housing developments have stalled, and home sales across the province have slowed dramatically. Ontario remains far behind its 2031 housing target, with the provincial government predicting no significant increase in housing construction before 2028.
To address the crisis, all major parties have introduced plans focused on:
🏗 Reducing construction costs
📜 Streamlining bureaucratic processes
Reducing Housing Construction Costs: What’s the Plan?
One of the biggest barriers to affordable housing is high development fees, which municipalities charge builders to fund infrastructure projects.
What are the parties proposing?
📌 Liberal Party: Eliminate development fees for new homes under 3,000 sq. ft.
📌 Green Party: Remove development fees for homes under 2,000 sq. ft. built within existing urban areas
How Do Development Fees Impact Housing Costs?
Industry experts argue that rising development fees have unnecessarily inflated housing costs. Municipalities have increased these fees to compensate for infrastructure funding gaps.
🏠 Dave Wilkes, CEO of the Building Industry and Land Development Association (BILD), estimates:
Taxes and government fees make up 25% of the cost of building homes in the GTA.
Some cities have already acted:
✔ Mississauga has cut development fees by 50%
✔ Vaughan has frozen development fees at 2018 levels for five years
Initially, the Ford government introduced discounted development fees for certain builders but later reversed the decision after pushback from municipalities, which rely on these fees for revenue.
To address this issue, both the Liberals and Greens have promised provincial funding to help cities offset revenue losses from lower development fees.
How Can Ontario Build More Homes?
Another major debate in the housing crisis is how to increase housing supply.
Progressive Conservative Plan: Cutting Red Tape
The Ford government has focused on reducing bureaucracy to speed up development, including the 2024 legislation that:
🏗 Empowers municipalities to advance stalled development projects
🏗 Simplifies zoning approvals to increase housing density near transit hubs
🏗 Prioritizes infrastructure for housing developments
Following the Greenbelt land swap scandal, this was the first major housing law passed by Ford’s government.
Additionally, the Conservatives have allocated billions to expand infrastructure, such as water and wastewater systems, to prepare undeveloped land for future housing.
To encourage development, Ford’s government has also set annual housing targets for cities. Cities that meet at least 80% of their targets receive financial rewards from the province.
NDP, Liberals & Greens: Build More Homes Through Policy Changes
The NDP, Liberals, and Greens propose legalizing fourplexes across Ontario, meaning single-family lots could accommodate up to four units.
🏠 Why? Experts argue that fourplex zoning is a practical way to increase housing density without requiring massive urban sprawl.
📌 What’s the problem? Doug Ford has rejected this idea, claiming it would face strong opposition from low-density neighborhoods.
NDP’s “Homes Ontario” Proposal
The NDP has proposed creating a new housing agency—Homes Ontario—which would:
🏗 Fund non-profit and co-op housing providers
🏗 Offer low-cost financing for affordable housing projects
🏗 Develop 250,000 affordable homes
The plan aims to increase affordable housing options while reducing reliance on for-profit developers.
Could U.S. Trade Tariffs Disrupt Ontario’s Housing Market?
Beyond local policy, international trade issues may also impact Ontario’s housing market.
Recently, the U.S. imposed new tariffs on Canadian construction materials, raising concerns about higher building costs.
🏗 Dave Wilkes warns that tariffs could increase construction costs and delay new projects.
🏗 Green Party Leader Mike Schreiner noted that Ontario imports $3.5 billion worth of U.S. glass annually for home construction.
📌 What does this mean? Developers already face high costs and shaky consumer confidence. Tariffs could worsen affordability issues in Ontario.
What Must Ontario’s Next Government Do?
Industry experts emphasize that the next government must restore consumer confidence in Ontario’s economy and housing market.
🏗 Dave Wilkes summarized the key challenges:
“The biggest issue is the high cost of development, ongoing uncertainty, and now trade tensions with our biggest partner. The next government must restore confidence to get the housing market moving again.”
Which Party Has the Best Housing Plan?
With election day approaching, voters must carefully assess each party’s strategy to fix Ontario’s housing crisis.
Key Housing Proposals:
📌 Progressive Conservatives
✅ Cut red tape & speed up development approvals
✅ Invest billions in infrastructure to support housing growth
✅ Offer financial rewards to cities meeting housing targets
📌 Ontario Liberals & Greens
✅ Cut development fees for new housing
✅ Provide provincial funding to help cities offset lost revenue
✅ Support increasing housing density through fourplex legalization
📌 Ontario NDP
✅ Create Homes Ontario to fund non-profit and co-op housing
✅ Build 250,000 affordable homes
✅ Legalize fourplexes to increase housing supply
📢 Will Ontario’s next government finally solve the housing crisis? Voters will decide on February 27.
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