Canada Housing Affordability
Government Policy Impeding Development, Impacting Housing Affordability
Feasibility becoming a challenge for residential developers. Construction costs in Toronto have risen 50 per cent since 2018, stemming from external factors unleashed during the global health crisis and internal factors from local policy makers. While external elements should dissipate, the internal aspects will likely be more challenging to overcome. As costs continue to rise while revenues plateau, developers are questioning the feasibility of new projects. In the long term, this will likely further hinder housing affordability.