TORONTO, Jan. 16, 2025 (GLOBE NEWSWIRE) -- New polling from the Ontario Real Estate Association (OREA) has found that prohibitive costs, like municipal development charges, are pushing the dream of homeownership even further out of reach for Ontarians.
Conducted by Abacus Data on behalf of OREA, the Housing Affordability in Ontario: Perceptions, Impacts, and Solutions (Wave 5) survey found that despite a steady desire to own a home (71%), lower interest rates, and cooling inflation, homeownership continues to be perceived as “expensive”, “unaffordable” and “overpriced”. Over 6 in 10 non-homeowners describe themselves as someone who “really wants to own a home” and within this group, 80% think it has become more difficult to buy a home over the past year, with 55% expecting housing prices to increase somewhat this year.
Based on these findings, it’s no surprise that nearly half of these aspiring homeowners have either given up believing they will ever own a home (25%) or are pessimistic about the possibility (24%). With a majority of Ontarians expecting housing prices to increase over the next year (51%, +16% from 2023), now is the time for bold action.
Ontarians generally disagree with the notion that “growth pays for growth,” particularly when it comes to the high costs associated with funding new housing infrastructure via development charges – 75% strongly support reducing municipal development charges, and 72% say they would support the Government of Ontario setting limits.
Ontarians further believe the responsibility of paying for infrastructure should lie primarily with either the provincial government (41%) or the municipality (25%), rather than being passed down to new homebuyers.
“Homeownership is a milestone that many Ontarians aspire towards. Unfortunately, prohibitive costs like development charges are being tacked onto the price tag and pushing affordability further out of reach,” said OREA President Rick Kedzior. “That’s why, since 2019, OREA has been lobbying the provincial government to look at ways to reduce development charges and make homeownership more affordable.”
In a Toronto Sun op-ed published December 2024, Kedzior illustrates the impact that development charges have on home prices. OREA has proposed several policy recommendations for the Government of Ontario to consider implementing that will streamline the building of much-needed homes and bring affordability back, without passing costs down to consumers. These solutions include:
- Ending exclusionary zoning province-wide so more homes can be built.
- Allowing water and wastewater services to be provided by municipal services corporations and amortized across the customer base, instead of using development charges.
- Intensifying density along transit lines by embracing commercial to residential conversions, saving Ontarians time and money commuting.
“We need to break down the barriers preventing Ontarians from entering the housing market by eliminating unnecessary red tape and costs that drive up home prices and slow down the entire homebuilding process,” said Kedzior. “Implementing pro-homeownership policies that both address the infrastructure needs of municipalities and encourage homebuilding are how we can help solve the housing crisis.”
To read the full survey report, please click here.
For more information, please contact:
Jean-Adrien Delicano
Senior Manager, Media Relations, OREA
JeanAdrienD@orea.com
416-459-6059
