Image by: unsplash
Ontario is struggling to achieve its goal of constructing over a million new homes due to recent policy reversals and rising interest rates, creating uncertainty for developers. Housing Minister Paul Calandra announced the rollback of boundary expansions imposed on several municipalities, which was met with disappointment from the Building Industry and Land Development Association (BILD). This decision affects land available for development, hindering the province's objective of building 1.5 million new homes by 2031. The province is already behind on its housing targets, and private sector projections suggest it won't catch up anytime soon.
The boundary expansions, initially aimed at boosting construction, faced objections and concerns from city staff and council members in some instances. Higher interest rates and difficulties securing construction financing have further deterred developers. The rising costs of raw materials and construction have made the industry more challenging. Developers are cautious and waiting for the right credit environment to return before proceeding with new projects. These factors combined create a complex situation that threatens Ontario's housing construction goals.
Read the full article on: CBC
