Development charge reform is needed to reduce housing costs and support new supply
New OREA policy report calls on all levels of government to address development charges without raising property taxes
TORONTO , March 19, 2026 (GLOBE NEWSWIRE) -- Development charges (DCs) have become one of the most expensive line items in housing construction. For hardworking Ontarians searching for a place to call home, these prohibitive costs are only pushing homeownership further out of reach.
Established initially to ensure that communities have essential infrastructure and that growth pays for growth, DCs have evolved into a system that now operates as a barrier to the very growth it was intended to support.
In A Pathway to Development Charge Reform, the Ontario Real Estate Association (OREA) is calling on all levels of government to modernize the DC framework and mitigate the runaway increase of these costs.
OREA’s latest report sets out seven recommendations to stabilize Ontario’s DC system, focused on restoring the balance between affordability, infrastructure delivery, and fiscal accountability, including:
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Creating a two-year DC suspension program, to provide immediate relief to homebuyers and accelerate housing construction.
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Using alternative financing mechanisms, such as municipal service corporations and municipal utility districts, in order to reduce infrastructure construction costs.
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Implementing a transparent direct-to-buyer DC billing model that exempts DCs from additional taxes, to reduce interest costs and tax-on-tax from the price of new homes.
“With today’s economic uncertainties and rising cost of living, homebuyers need some relief when making the biggest financial transaction of their lives,” said OREA President Kim Fairley. “We need to champion a development charges framework in Ontario that supports existing communities while welcoming new residents, and the REALTOR®-led solutions in this policy report are the key to making that happen.”
Polling released by OREA earlier this month found that Ontarians accept the idea of development charges in principle but disagree on how they are used. The survey found that two in five Ontarians (42%) believe it is unfair to pass these costs onto homebuyers, and many agree that development charges make housing less affordable (71%).
Ontarians are beginning to see that the factors impacting housing affordability are not solely market-driven – DCs and government-imposed costs like property taxes have an impact on their ability to afford a home. Combined with only 22% believing municipalities are transparent about how funds are spent, Ontarians are becoming increasingly dissatisfied with the way their governments fund new housing growth.
“REALTORS® understand that it costs a lot of money to fund infrastructure and support thriving communities,” said Fairley. “In order to create more housing options in the market and bring affordability back, we need to change the way we fund projects by working with all levels of government to address the root causes of escalating development charges.”
If implemented by the Government of Ontario, these seven policy recommendations can simplify, standardize, and align the province’s DC system so housing and infrastructure can advance together in lockstep, helping more Ontarians afford a home in the communities they want to live in.
For more information, please contact:
Jean-Adrien Delicano
Senior Manager, Media Relations, OREA
JeanAdrienD@orea.com
416-459-6059
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