Here at BILD, we feel that 2014 will present us with our share of challenges and opportunities as BILD continues to work with our partners in government to build safe, quality, complete communities that people can afford across the GTA.
BILD will commence the year by continuing to represent the industry and new home buyers at the province’s public consultations to review Ontario’s land-use planning system, decision-making process and the financial components of the development process.
A comprehensive and fact-based look a Ontario’s land-use planning and complimentary financial systems have the potential to improve the affordability of new homes in the GTA. Over the past decade, the cost of new homes has increased tremendously due to a number of factors related to public policy.
This is particularly evident in the low-rise sector, which is hindered by constrained land supply. Prices of new ground-related housing reached record highs in 2013, with the price gap between low-rise and high-rise eclipsing $220,000 for most of the year – also a record high.
The high-rise sector, meanwhile, is challenged by outdated zoning by-laws – some of which date back all the way to the 1950s. Zoning by-laws determine the rules a proposed development must follow, but community needs have changed dramatically in the last 10 years. Despite this, rezoning of many GTA neighbourhoods is not aligned with the municipalities’ official plans nor the province’s intensification targets.
Another notable cause for escalating prices is the government fees and charges paid by new-home buyers as part of the final purchase price. These includes development charges, planning and building permit fees, parkland dedication, property and land transfer taxes, mortgage insurance, HST and more – averaging about 20 percent of the cost of a new condominium or 23 percent of the cost of a ground-related home.
Development charges currently make up the largest portion of government-imposed fees on new homes, and since 2004 have increased between 143 per cent and 357 per cent across the GTA.
With up to 100,000 people choosing our great region as their home each and every year, it’s going to be an exciting year for all of us as we work together to build a greater GTA.
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