What Is Standing in the Way of More Homes in Toronto
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This is actually not what is really standing in the way of more homes in Toronto. Here’s the truth.
- New rent controls that de-incentivize developers from building rentals.
- 15% foreign investors tax that discourages foreign investors from buying new condos from floorplans. Investors are the likely buyers of condos to be built five to six years in the future. Eliminating this resource will slow down sales absorption which will slow down starts. Slower sales = longer waits for a completed building
- Historic Control Districts. Newly created historic districts that newly name formerly non-historic buildings to historic status has neutered large areas of the core from ever being developed.
- Elimination of the Ontario Municipal Board (OMB) and the creation of the Local Planning Appeal Tribunal (LPAT). The only thing keeping the city and councillors from pandering to the public was the OMB. No OMB, much less development. You will notice the huge development slowdown in two to three years as the pipeline of projects falls off to nothing.
- TO Core, the new 25-year blueprint for downtown growth is anti-growth. Its agenda will greatly reduce housing in the city. It’s the final dagger in development.
- Massive government taxation. Development levies, Section 37 levies, education levies, park levies, water distribution levies, HST, Land Transfer Tax, permit fees, the government grabbing revenue is an endless list. 20-25% of a condo’s cost in Toronto is municipal and provincial government tax.
This is what is standing in the way. That’s it. Fix it and housing will flourish at moderate price gains. Otherwise the city is doomed with spiralling prices.
What’s really standing in the way of building more homes in the Greater Toronto Area? | Global News