Slashing development fees is not a cure-all for housing affordability: CMHC
The agency said eliminating the fees could raise viable projects by up to 14% in some cities, but would not restore affordability.
- On Wednesday, the Canada Mortgage and Housing Corp. reported that slashing municipal development charges alone will not restore housing affordability, though such cuts could increase viable projects in some cities by up to 14 per cent.
- Development charges are fees cities levy on builders to fund infrastructure supporting new construction, and the federal government is spending billions to encourage municipalities to cut these fees to boost housing supply.
- Impact varies significantly by municipality, as Burnaby would see a 14 per cent increase in viable projects following near-elimination of fees, while Ottawa would see roughly 5 per cent gains with a 50-to-60 per cent reduction.
- CMHC Chief Economist Mathieu Laberge noted that development fees remain essential to some cities' fiscal plans, with the increase in viable projects insufficient to reach pre-pandemic affordability levels in many markets.
- Laberge emphasized that targeting these fees is not a "cure-all" for Canada's housing affordability woes, as broader structural issues continue to impede affordability nationwide.
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A significant reduction in municipal development fees could help stimulate construction in some of Canada's most expensive markets, but these reductions alone would not be sufficient to fill the affordability deficit, according to a new analysis by Canada Mortgage and Housing Corporation (CMHC).
The Toronto Star
Slashing development fees is not a cure-all for housing affordability: CMHC
OTTAWA - The federal housing agency says slashing municipal development charges won't be enough on its own to make homes affordable again across Canada.
Slashing development fees is not a cure-all for housing affordability: CMHC – Energeticcity.ca
Carpenters build new homes in Ottawa on Monday, June 1, 2026. THE CANADIAN PRESS/Sean Kilpatrick OTTAWA — Slashing municipal development charges could help spur building in some of Canada’s most expensive markets but those cuts wouldn’t be enough to fix the affordability gap on their own, according to a new analysis from the federal housing agency. Development charges are fees cities impose on developers that are mainly used to pay for infrastru…
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