Housing Supply Action Plan should help fill in GTA’s missing middle

Dave Wilkes
May 11, 2019
Thestar.com

The Housing Supply Action Plan announced by the Government of Ontario last week represents the first major step — by any provincial government — to address availability and affordability in the market.

The actions announced recognize that the “tax and restrict” approaches taken by previous, and other levels of, governments have simply fuelled the generational challenge faced by many in the Greater Toronto Area and other large Canadian cities.

Layers of bureaucracy, outdated zoning, and complex policies and procedures have created structural barriers to the efficient operation of the housing market that have resulted in a shortfall of housing. These barriers delay development of new homes, and both add costs and contribute to the run-up in housing costs over the last decade.

On average it now takes 10 years to build a typical highrise project and 11 years to complete a lowrise project in the GTA.

It is estimated that since 2006, the region fell short approximately 98,000 units versus forecasts, and is now falling behind by nearly 10,000 more units per year. In addition, demand has increased as the GTA has become one of the fastest growing regions in North America with an estimated 115,000 new residents arriving every year. The population of the GTA is set to grow by 40 per cent — an estimated 9.7 million people — by 2041. First-time buyers and renters will be most affected.

Now, Ontario’s new Housing Supply Action Plan takes meaningful steps to try to balance the housing market through supply and speed. First, it has recognized that the Local Planning Appeal Tribunal (LPAT) is not working for anyone, as evidenced by the nearly 1,000 cases and nearly 100,000 housing units that are stuck waiting for adjudication. Clarifying rules and increasing resources for the tribunal, and being able to proceed with even half the units currently under review will help address the shortfall.

The plan also seeks to reduce duplication, cut red tape and speed up the development approval process. At the same time, the Plan acknowledges that speed cannot come at the expense of other priorities and explicitly recognizes the importance of the Greenbelt, cultural heritage assets, and key employment and agricultural lands.

Provincial policy is adjusted in the plan to encourage a mix of homes and to make it easier, and faster, to build more housing near transit. This will encourage more of the missing middle — townhomes, stacked townhomes and midrise — so sorely needed in the GTA.

The proposed changes also acknowledge the cumulative effect that taxes, fees and charges have on housing affordability. Having the ability to lock in development charges early in the process increases predictability for the industry, and for consumers. Deferring development charges until occupancy provides greater incentive to build rental units. Special provisions for social and not-for-profit housing will also lower the upfront cost of building.

The benefits for GTA residents include having a greater choice in housing at the right price. Ensuring housing issues will not be a barrier to attracting and retaining the right talent will benefit businesses looking to grow.