Posthaste – Housing Seller

Posthaste: Want to restart housing construction? Cut development fees

Admin — Fri, 05 Jun 2026 15:49:49 +0000

Trimming development fees would make dozens of housing projects across the country more economically viable in a time when Canada looks to seriously boost construction, says the nation’s housing agency.

Development charges, which municipalities levy on housing developers to pay for the new infrastructure such as roads, water and transit needed for these projects, are especially popular in Ontario and British Columbia and can vary greatly.

For example, a two-bedroom apartment in Ottawa commands development charges of $39,600 while Markham takes $121,500, according to data from Canada Mortgage and Housing Corp. (CMHC).

Given that the average new build was 55 units in Ottawa in 2024 and 246 units in Markham, a developer could be on the hook for $2.2 million and $29.9 million, respectively, in upfront fees for a build.

As a result, developers face a real hurdle in getting their projects off the ground.

But cutting the charges in half would boost the number of viable projects by about five per cent in Toronto and Vancouver, according to CMHC. An all-out cut would boost that figure to about 10 per cent.

“Reducing development charges can improve housing project viability, especially in communities where they are highest, but meaningful gains in supply require substantial reductions and they are only one part of the solution,” Mathieu Laberge, CMHC’s chief economist, said in a release .

“Improving affordability will require a broader approach, including improved land-use regulation and increased scale and innovation to boost productivity in the construction industry.”

On top of stalling projects, development charges also hurt housing affordability.

CMHC said development charges are passed down to homebuyers and that the price increases are often larger than the development fees themselves. The higher prices on new builds can also drive up prices for existing homes on the market.

High development charges, however, can be a bit of a double-edged sword since they can drive down prices of vacant land and help alleviate property taxes.

CMHC estimates Canada needs to double its annual housing starts to between 430,000 and 480,000 new units by 2035 to meet demand.

As of April, Canada was on pace for 256,777 housing starts in 2026.

Sign up here to get Posthaste delivered straight to your inbox.

Professional stock pickers are having a hard time gaining an edge as Big Tech strengthens its grip on the stock market.

Only about 20 per cent of stock pickers have outperfromed the S&P 500 this year, according to Strategas Securities, which marks the worst performance since 2021.

IPO debuts of SpaceX, Anthropic PBC and OpenAI are expected to magnify the concentration at the top.

The S&P 500 is up 16 per cent this quarter.

McLister on mortgages

Want to learn more about mortgages? Mortgage strategist Robert McLister’s Financial Post column can help navigate the complex sector, from the latest trends to financing opportunities you won’t want to miss. Plus check his mortgage rate page for Canada’s lowest national mortgage rates, updated daily.

Financial Post on YouTube

Visit the Financial Post’s YouTube channel for interviews with Canada’s leading experts in business, economics, housing, the energy sector and more.

Today’s Posthaste was written by Ben Cousins with additional reporting from Financial Post staff and Bloomberg.

Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? Email us at posthaste@postmedia.com .

Is the World Cup really a boon for the economy?
Brace for the coming labour squeeze as 25,500 Canadians retire every month

Bookmark our website and support our journalism: Don’t miss the business news you need to know — add financialpost.com to your bookmarks and sign up for our newsletters here

Source link

Posthaste: The surprising pockets where homebuyers now have the advantage

Admin — Wed, 20 May 2026 15:06:12 +0000

A few surprising pockets have emerged around the country where those looking for their new dream home have a real chance to strike a deal.

Seven of the 23 biggest Canadian cities and regions emerged with the perfect mix of falling prices and sales, meaning there is plenty of cheaper supply at the moment, according to a report by real estate platform Zoocasa Inc.

Most notably, home prices have fallen 8.1 per cent in the Niagara Region in Ontario, while sales have fallen 6.4 per cent, marking it the country’s most advantageous market for buyers.

Other opportunity spots include Greater Vancouver, where prices have fallen three per cent and sales are down 2.9 per cent, and Hamilton-Burlington, where prices and sales have dropped 6.2 per cent and 0.7 per cent, respectively.

Other buyer-market regions include Sudbury, Ont., Gatineau, Que., Regina and the Fraser Valley of British Columbia.

“For buyers who’ve been waiting for more selection and more negotiating power, these markets are worth watching closely,” Zoocasa said in the report.

As a whole, Canadian home prices were up 2.2 per cent year over year in April to an average of $695,412, according to the Canadian Real Estate Association (CREA) .

Home sales were up 0.7 per cent month over month in April, with activity expected to be even stronger in May.

“Notwithstanding April’s bounce-back, the housing market continues to face several headwinds, like weak population growth, elevated supply in key regions and shaky job markets,” Rishi Sondhi, an economist at Toronto-Dominion Bank, said in a note last week . “These factors suggest 2026 could be another subdued year for Canadian housing.”

There are, however, areas that are particularly hot right now, mostly in Quebec.

Saguenay, Quebec City, Sherbrooke and Montreal are among the regions where both housing prices and sales are on the upswing, along with Thunder Bay, Ont., and Newfoundland and Labrador.

“Mid-priced cities are posting double-digit price gains, several higher-priced regions are seeing meaningful corrections and a handful of markets are quietly heating up across both prices and sales,” the Zoocasa report said.

Sign up here to get Posthaste delivered straight to your inbox.

Canada’s inflation rate ticked higher to 2.8 per cent in April, largely on the back of high energy prices related to the war in Iran.

The Consumer Price Index for the month represents the highest rate since May 2024, though it still came in lower than Bank of Canada expectations.

The price of food climbed 3.8 per cent in the month, while fuel costs from transportation were up 7.6 per cent.