Mark Carney and Doug Ford’s deal to cut development charges by up to 50 per cent for three years won’t, by itself, solve the province’s housing crisis. But it will provide much-needed temporary relief to homebuyers and renters.
Housing news has not been all bad in recent years, as the drop in rents and resale home prices has been welcome news for Ontario renters and buyers. However, even as prices fell, housing starts declined, and pre-construction sales dried up in the GTA because construction costs have not kept pace with prices. This has created a paradox: homes remain too expensive for most middle-class buyers, yet not expensive enough to build profitably.
