Rockier road to 1.5M new Ontario homes, construction industry insiders say

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Minister of Municipal Affairs and Housing and Government House Leader Paul Calandra speaks to reporters at Queen's Park in Toronto, on Thursday, Sept. 7, 2023.

Ontario faces a tough road to meet its goal of building more than a million new homes. Construction industry insiders say the latest government policy reversal and elevated interest rates wreak uncertainty for developers.In his short time as housing minister, Paul Calandra has tabled legislation to reverse changes the province made to the Greenbelt and promised to roll back expansions to some urban boundaries, both policies put in place under his predecessor Steve Clark.

"As it gets rescinded and pulled back, that land is no longer available for growth. That land is no longer available for new homebuyers. And it will seriously impact the ability to meet the provincial objective" of 1.5 million new homes by 2031,Ontario has over a million homes in the pipeline, but needs developers to put shovels in the ground: report

She says extensive planning reviews concluded that Hamilton has enough land within its existing urban boundary to build a variety of housing stock. Higher interest rates and elevated costs for materials and labour have combined to drastically increase the price of housing construction in recent years. Even before the political whiplash of those reversals, higher interest rates and uncertainty about how long they will stay high limited prospective new housing construction.

Housing supply picture improving but Canada still needs 3.5 million more new homes by 2030, CMHC says "It's becoming a riskier proposition in a high interest rate environment for some of these builders," Rodgers said.

 

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