Tackling Ontario’s Housing Supply Crisis: A Minister’s Perspective

Minister’s Message

Ontario is heralded as one of the most prosperous and rapidly growing provinces in Canada, yet many residents find themselves grappling with a significant challenge: securing a home. This dilemma spans demographics, impacting young families eager to establish roots, newcomers wishing to integrate into communities, and seniors aiming to downsize while staying close to loved ones.

The struggle is not confined to urban centers; it resonates within rural, suburban, and urban areas alike. The crux of the matter is clear: the construction of adequate housing simply isn’t keeping pace with demand. Recognizing this issue, the government has set an ambitious goal of constructing 1.5 million homes over the next decade through its initiative, More Homes, Built Faster: Ontario’s Housing Supply Action Plan 2022–2023.

Overview of the Housing Supply Shortage

The housing supply crisis is a symptom of a broader national issue. Factors such as high-interest rates, inflation, and shortages in construction materials exacerbate the problem, hindering the construction of new homes. This action plan aims to tackle these barriers by streamlining development approvals, reducing government fees, and accelerating the construction process at both provincial and municipal levels. The intention is clear: to ensure every Ontarian can find a home that fits their needs and budget.

Building More Homes: A Multi-Faceted Approach

Gentle Density

One promising strategy to address the housing shortage is implementing gentle density, which facilitates increased housing units in urban environments with minimal disruption to existing neighborhoods. The government plans to allow up to three residential units on most residential lots "as of right," meaning no additional planning approvals are needed. This initiative could lead to a wider mix of rental options and provide homeowners with the potential to either accommodate extended family members or generate additional income.

Density Near Transit Hubs

Prioritizing housing developments around transit hubs is another strategic approach. By facilitating residential growth in areas with significant transit access, residents can commute to work or school more easily, creating a more sustainable living environment. The government aims to compel municipalities to update zoning bylaws promptly, thus expediting the construction process in these vital areas.

Revitalizing New Housing Supply

Current rules that limit redevelopment after the demolition of mid-sized rental buildings are counterproductive. While intended to preserve affordable housing, these regulations often stifle renewal and prevent much-needed rental units from entering the market. Consultations to address this will focus on balancing tenant protections while fostering the development of new rental housing.

Municipal Housing Targets

Ontario’s rapid population growth necessitates an urgent expansion in housing stock. The government is urging 29 of the province’s largest municipalities to commit to addressing this deficit over the next decade. By emphasizing the need for municipal infrastructure, such as roads and sewers in conjunction with housing development, progress is anticipated more swiftly.

Identifying More Land for Housing

Identifying and utilizing underused provincial lands represents another pathway to expand housing availability. By streamlining processes within conservation authorities regarding land sales, the government aims to make housing development easier, more efficient, and faster.

Building More Schools

The housing crisis isn’t solely about residential units; communities also require infrastructure such as schools. By fostering innovation in school construction within high-density neighborhoods, Ontario can ensure educational facilities keep pace with population growth.

More Affordable Housing Options

The shortage of affordable housing remains a critical focus. The government is consulting on standardized approaches to inclusionary zoning, ensuring that housing remains accessible for low to moderate-income families, especially in high-demand areas.

Helping Homebuyers

In addition to increasing supply, protecting the interests of homebuyers is essential. To discourage speculative buying from foreign investors, the government is raising the Non-Resident Speculation Tax from 20% to 25%. This measure aims to make housing more attainable for Ontario families.

Incentives for Efficient Use of Vacant Homes

Vacant homes contribute to the housing crisis. To tackle this, the government plans to introduce incentives that encourage property owners to rent or sell unoccupied homes. New frameworks for local vacant home taxes will also bolster housing availability.

Streamlining Land Lease Approvals

Land leases, in which homeowners rent the land beneath their homes, represent an accessible option for many, particularly in rural regions. Streamlining the approval process for land leases would encourage more development and increase available housing options.

Reducing Construction Costs and Fees

The costs associated with developing new homes can be disproportionately high due to various fees levied by municipalities. By proposing to reduce or exempt fees related to affordable housing, the government aims to lower construction costs and thus, housing prices. Key measures include:

• Freezing or reducing development charges for affordable units.
• Reducing parkland fees for higher-density residential developments.
• Revising community benefits charges to better reflect the actual units being built.

Streamlining Development Approvals

The approvals process for new construction can be cumbersome. The government plans to overhaul these processes, eliminating unnecessary bureaucratic hurdles to expedite housing delivery. This includes simplifying approval requirements for smaller developments and focusing on critical health and safety issues for more extensive projects.

Tribute to Natural Heritage and Community Input

While fostering housing growth, preserving Ontario’s rich natural heritage remains important. Engaging communities and stakeholders to discuss balances between development and ecological preservation is crucial. This calls for collaboration to develop land use policies that are comprehensive and user-friendly.

Conclusion: A Collaborative Future

The complexity of Ontario’s housing crisis demands a multifaceted and collaborative response from all levels of government, the private sector, and non-profits. It recognizes that while the issues at hand are longstanding and multifactorial, the government’s commitment to a long-term housing strategy will lay the groundwork for a more accessible housing future.

By prioritizing sustainable growth and innovative housing solutions, Ontario can work towards ensuring that every resident—from young families to seniors—can find the right home, contributing to a vibrant, inclusive community.