Ontario’s Ambitious Housing Plan: Building 1.5 Million Homes in a Decade

A recent report commissioned by Premier Doug Ford’s government proposes a bold agenda for housing in Ontario: the construction of 1.5 million new homes over the next ten years. This effort is framed as a response to a mounting housing crisis that has seen the average cost of homes in the province nearly triple over the past decade. The report, prepared by the Housing Affordability Task Force, outlines 55 recommendations aimed at significantly boosting the supply of housing, particularly in urban and suburban areas.

The Housing Crisis Unveiled

The urgency of addressing housing affordability is underscored in a letter from the task force chair, Jake Lawrence, who asserts, “We are in a housing crisis, and that demands immediate and sweeping reforms.” The report is set to release publicly soon, with reforms potentially rolling out before the upcoming provincial elections scheduled for June 2. This timeline signals the government’s commitment to act swiftly to alleviate the housing burden on Ontarians.

Key Recommendations

The task force seeks to accelerate the housing development process by dramatically overhauling how municipalities approve housing projects. Key recommendations include:

• Increasing density in traditionally single-family neighborhoods
• Repealing municipal policies that prioritize the preservation of neighborhood character
• Setting uniform provincial standards for urban design
• Limiting public consultation durations on housing developments
• Legislating timelines for development approvals, with automatic green lights for projects that exceed approval deadlines

These measures aim to reduce bureaucratic hurdles that have historically slowed down housing development.

The Challenge of Urban Density

One glaring issue highlighted in the report is the low population density in major Ontario cities compared to other global metropolises. For example, Toronto has only a quarter of the population density of New York City and London, indicating significant room for urban growth. The task force argues that land availability is not the primary obstacle; instead, enhancing how we utilize existing spaces is crucial.

Tackling NIMBYism

The report confronts the phenomenon of "not in my backyard" (NIMBY) attitudes that often hinder development. It asserts that local resistance to new housing projects complicates efforts to accommodate the growing population in Ontario. The task force contends that the politicization of planning, driven by local councillors seeking votes from constituents favoring the status quo, leads to delays that increase housing costs.

Addressing Development Delays

The report details strategies to expedite the Ontario Land Tribunal process, which hears appeals related to development projects. By empowering the tribunal to reject appeals lacking merit and limiting the right to appeal affordable housing projects, the task force aims to streamline development processes significantly.

Financial Incentives and Accountability

Local municipalities that fall short of provincial housing targets may face reduced provincial funding. This recommendation aims to incentivize municipalities to prioritize housing growth efficiently. Furthermore, the report advocates for the province to oversee expenditures related to development fees and community benefits charged to developers.

Unsuitable for Current Demand

Interestingly, while the report focuses on supply-side reforms, it overlooks demand-side factors, such as the high percentage of homes bought by investors—over 25% of purchases in Ontario—who own multiple properties. Addressing these demand-side issues, including the controversial practice of blind bidding in real estate, remains outside the immediate scope of the report.

Conclusion

The Housing Affordability Task Force’s recommendations represent a significant shift in housing policy for Ontario. With ambitious goals and a focus on increasing density, the report acknowledges that Ontario’s current zoning and development frameworks are outdated. As the government gears up for legislative action, it faces the formidable challenges of balancing community interests with the pressing need for housing. The forthcoming months will be critical in determining whether Ontario can shift-course to meet its ambitious housing targets and provide relief to its struggling residents.