The Missing Middle with Mike Moffatt and Sabrina Maddeaux
Why Ontario Cities Are Sitting on 10 Billion in Cash
Feb 19, 2025
Uncover the mystery of Ontario's $10 billion in unspent infrastructure funds. The discussion highlights how development charges are driving housing prices up, particularly affecting young potential homeowners. Explore the political dynamics at play as municipalities sit on vast reserves while struggling with timely investments. Misleading claims about rising charges spark debate, revealing a stark disconnect between intent and reality. As public awareness grows, the pressure mounts for change in municipal policies impacting housing affordability.
19:01
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Quick takeaways
- Development charges significantly inflate home prices, hindering young people's ability to purchase property and contribute to the housing crisis.
- Ontario municipalities hold over $10 billion in unspent development charge revenue, highlighting issues of fiscal management and delayed infrastructure investment.
Deep dives
Impact of Development Charges on Home Prices
Development charges significantly contribute to rising home prices, which poses a challenge for young people trying to purchase homes. These taxes, which include community benefit charges and parkland dedication fees, can add over $200,000 to the cost of a home. Since these charges are typically paid upfront when builders receive permits, developers often incur substantial financing costs while waiting to sell properties. As a result, the cumulative effect of these taxes is not only higher prices but also a reduction in the overall number of homes being constructed.
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