Ontario is facing a housing affordability crisis so severe, it’s not just pricing families out of homes, it’s putting the economic future of the entire province at risk. Across the Greater Toronto and Hamilton Area (GTHA), housing starts are collapsing, projects are being shelved, and thousands of construction jobs are at risk. In the Hamilton CMA, which includes Burlington and Grimsby, the residential construction industry contributes $4.6 billion annually to the economy and sustains over 20,000 jobs. But the industry is experiencing an unprecedented downturn. The problem is, the cost to build new homes is higher than what consumers are willing and able to pay. As such, layoffs have begun, and work is drying up putting many good paying jobs in jeopardy.
One of the drivers of housing costs is development charges (DCs), municipal fees intended to fund infrastructure for new residents. Over the past decade, these charges have skyrocketed, increasing by an average of 327% across the GTHA. In Burlington, the combined City and Regional DCs for a townhome is nearly $70,000. These costs are passed directly to purchasers, putting homeownership further out of reach for young families and seniors alike.
Local leadership plays a crucial role in housing development and affordability. The City of Burlington has consistently shown a willingness to collaborate with the building industry to address barriers to housing. From launching its innovative Pipeline to Permit Committee to adopting pay-on-demand surety bonds, Burlington has demonstrated that municipalities can be partners to industry in getting shovels in the ground.
Burlington is taking the next important step by reviewing its development charges. This review comes at a critical time. Other cities have already recognized that action is needed: Vaughan has reset its DCs to 2018 levels, cutting low-rise charges nearly in half; Mississauga has reduced DCs by 50% and eliminated them entirely for some rental housing. Hamilton, too, undertook a major review and reduced rates by 20% on September 1st.
Burlington’s willingness to examine its own DC structure should be applauded. This kind of forward-thinking leadership at the Pipeline to Permit Committee by Mayor Meed Ward, Councillor Sharman, Councillor Stolte and Councillor Galbraith, sends a clear message: the city is serious about tackling housing affordability, saving construction jobs and keeping its economy competitive.
Critics sometimes argue that DCs are necessary to pay for growth-related infrastructure. That is true, but only part of the story. In practice, many municipalities are over-collecting. Between 2018 and 2023, Ontario municipalities collected $17.5 billion in DCs but spent only $11.8 billion. Reserve funds have ballooned, even as projects stall. As of 2022, the combined DC reserve fund balance across all municipalities with DCs reached $10.6 billion, which is a 278% increase over the combined $2.8 billion balance in 2009.
This imbalance undermines housing affordability without accelerating infrastructure delivery. Higher fees suppress housing output, leaving municipalities with fewer homes built, less property tax assessment growth, and ultimately less revenue collected than expected. The principle is simple: when the cost of building rises, fewer projects move forward.
By offering temporary relief, such as a two-year reduction in DCs, Burlington could help ensure projects already in the pipeline actually get built. That means more homes for families, more jobs for skilled tradespeople, and a healthier local economy.
It’s important to recognize that municipalities cannot solve the affordability crisis alone. The federal government has promised a new GST rebate for first-time buyers, while Premier Ford has signaled openness to aligning the provincial HST with that relief. Together with municipal action on DCs, these policies form pieces of a coordinated puzzle across all three levels of government.
Burlington’s leadership matters because it sets a standard for collaboration and pragmatism. By proactively reviewing charges and seeking solutions, the city is not waiting for others to act first. That is the kind of initiative Ontario needs if we are going to meet ambitious housing targets and keep communities affordable.
The West End Home Builders’ Association believes Burlington can continue to be a model for how municipalities and the development industry can work together. We are encouraged by recent action demonstrating leadership by directing staff to analyze options for DC relief, assess fiscal impacts, and report back with concrete recommendations.
The time to act is now. Burlington has already shown leadership. By moving forward with meaningful development charge relief, the city can protect jobs, spur investment, and ensure that housing remains within reach for families today and tomorrow.
