Toronto residents looking to rent or own a new home could add tens of thousands of dollars to the cost of building a new home after the city council decides to raise development costs significantly this week. You will face higher costs.
Development costs A one-time fee collected by the municipality when a building permit is issued, and the public infrastructure required to provide municipal facilities such as roads, transportation, water and sewage, and community centers with fire and police services. It is used to subsidize the development cost of. ..
On July 19, the Toronto City Council decided to raise the cost of developing residential buildings by 46% and the price of non-residential buildings by 40%.
As a result, developers wishing to build a single-family or semi-single-family home will have to pay $ 137,040 for development. this is, Current price is $ 93,978.. If you build an apartment with two or more bedrooms, the price will be increased from $ 55,012 to $ 80,218.
For apartments with less than two bedrooms, the cost will increase from $ 35,910 to $ 52,367.
The city said the rate increase would be phased in until May 2024 and would be necessary to pay for the infrastructure needed to service the new home.
Due to recent changes in state law, Toronto has report City officials report that the city is facing a $ 67 billion capital bill over the next 10 to 20 years, of which $ 14.9 billion is due to the cost of new development. Globe and Mail report.
Toronto Mayor John Torrey said the city’s limited options for generating income need to be balanced between affordable protection and rising development costs.
“Applicable development costs … don’t even start paying for the infrastructure we have to put in place to deal with growing cities,” he said at a council meeting on July 19. ..
“But we need to achieve a balance between that and the impact on the affordability of new homes.”
However, critics warn that increased development costs will reduce construction during the housing crisis and that costs will be transferred to new residents to avoid increasing property taxes for existing homeowners. I am.
“The burden will be on the lessor and the new homeowner,” Jacob Dawhan of More Neighbors Toronto, a professional home advocacy group, told Globe.
“The city’s budget should be shared more equitably between real estate owners and new residents who have lived in Toronto for decades.”
During the council meeting on July 19th motion Councilor Ana Bailão has passed an exemption from the increased charges for the second, third and fourth housing units in one property.