Ontario Construction News staff writer
The Residential Construction Council of Ontario (RESCON) is backing new legislation from the Ontario government aimed at cutting red tape and standardizing development charges — changes the industry group believes will help ease the province’s housing crisis.
The Ford government introduced the legislation earlier this week, saying it will speed up the development approvals process and reduce housing costs. RESCON president Richard Lyall called the changes “critical” to helping the province meet its homebuilding goals.
“In light of the dire housing supply and affordability crisis that we are facing, the proposed legislative changes are critical to eliminating hurdles and reducing costs so that the residential construction industry can get back on track and build the housing that Ontario needs,” Lyall said in a statement.
Ontario has pledged to build 1.5 million homes by 2031, but progress has been slow due to what developers describe as excessive municipal fees and sluggish planning timelines.
The new legislation would allow developers to pay development charges at the point of occupancy rather than earlier in the planning process — a move RESCON says could ease upfront financial pressures on builders. It would also limit the number of technical studies municipalities can demand from homebuilders and give the province more authority over the local approvals process.
Development charges long been a flashpoint in the housing affordability debate. A recent report from the Canadian Centre for Economic Analysis found that taxes and fees now account for nearly 36 per cent of the cost of a new home in Ontario, up from 31 per cent three years ago. Increases in development charges made up a large portion of that rise.
As part of the announcement, the province also said it will inject an additional $400 million into housing-enabling infrastructure through the Housing-Enabling Water Systems Fund and the Municipal Housing Infrastructure Fund.
Ontario has seen a growing number of young adults leave the province in search of more affordable living. In 2024, more than 8,000 people aged 18 to 34 left Ontario, while Alberta gained over 18,000.
“At a time when there are so many challenges facing the residential construction industry, these changes are necessary and essential,” Lyall said. “Today’s announcement was a major step towards implementing the required solutions.”