Ontario's New Housing Legislation Draws Builder Support Amid Crisis-Level Affordability Pressures

Key Highlights:

• New bill aims to streamline approvals, cap costly municipal demands, and defer development charges
• Ontario boosts infrastructure investment by $400M to support faster housing delivery
• Builders say reforms are essential to reversing the province’s declining housing affordability and supply

Ontario's embattled housing market may finally see a turning point. A newly introduced provincial bill aimed at streamlining homebuilding approvals and cutting red tape is being hailed by developers as a timely and necessary intervention in a sector strained by delays, high fees, and escalating affordability concerns.

The Residential Construction Council of Ontario (RESCON) welcomed the Ford government's legislation, describing it as a “major step forward” in addressing systemic barriers that have long hampered housing development across the province.

“With housing affordability at crisis levels, these legislative changes are critical,” said Richard Lyall, RESCON President. “They align with many of the priorities we've advocated for—removing roadblocks, controlling costs, and speeding up construction timelines.”

Development Charge Overhaul and Approval Streamlining

Among the most significant provisions of the legislation is a move to standardize development charges (DCs)—fees municipalities impose to fund infrastructure for new communities. These charges, often passed directly to homebuyers, have been rising sharply. A recent analysis by the Canadian Centre for Economic Analysis found that taxes and fees now comprise nearly 36% of a new home’s purchase price in Ontario, up from 31% just three years ago.

The bill also proposes that DCs be paid at the point of occupancy, rather than earlier in the planning stage—a change builders say will ease cash flow pressure and lower upfront costs.

Faster Approvals and Centralized Authority

In a shift of oversight, the legislation gives the provincial government more direct authority in the development approvals process and limits the number of studies municipalities can demand from developers. Additionally, it empowers the Minister of Infrastructure to issue Minister’s Zoning Orders (MZOs) and exempts transit-oriented communities from local zoning restrictions.

To further accelerate housing starts, Ontario will inject $400 million in immediate funding into housing-enabling infrastructure, including water systems and municipal planning support.

A Turning Point for Ontario’s Housing Outlook?

Ontario has pledged to build 1.5 million homes by 2031, but with approvals sluggish and young residents leaving the province in search of affordable housing elsewhere—8,094 young people exited Ontario in 2024 alone—industry stakeholders warn that bold reforms are urgently needed.

“This legislation simplifies the process, reduces uncertainty, and sends a clear message: Ontario is serious about solving its housing crisis,” Lyall said.