Zoning Reform Ideas

[evandyk]

I suspect labour and material shortages are the real constraining factors. Do they really think developers will deliberately build less (and risk other developers building more)?

I can definitely see a big developer like Oxford preferring not to release 18,000 rental units *all at once* but there are plenty of other reasons why a major development with multiple buildings is going to be built in a phased approach.

 

[allengeorge]

Thanks for sending out the article.

One observation I'll make is that (in Canada) we end up with incredibly oligarchic industries that can severely limit price competition. When it comes to building, by making rules burdensome and hard to navigate by small builders you end up with a situation where only the largest can play, and the largest can afford to stage/land-bank in order to support prices.

EDIT:

I'll also point out one other thing: why are we so obsessed with finding a silver bullet here? What would be the downside to easing rules, making it easier to build and simplifying planning? We make government more efficient, focus the planning department on big assemblages/developments, make it easier for smaller entrants...

 

[afransen]

Btw, if anyone wants to get around paywalls such as this, in Chrome you can just disable javascript on the page. Right click on the page and click inspect, press control-shift-P, type javascript, select Disable JavaScript and refresh.

 

[allengeorge]

@Northern Light Sorry - added my edit _after_ you hit "Like". You may want to reread the EDIT and see if you agree with that too

 

[afransen]

Thanks for sending out the article.

One observation I'll make is that (in Canada) we end up with incredibly oligarchic industries that can severely limit price competition. When it comes to building, by making rules burdensome and hard to navigate by small builders you end up with a situation where only the largest can play, and the largest can afford to stage/land-bank in order to support prices.

EDIT:

I'll also point out one other thing: why are we so obsessed with finding a silver bullet here? What would be the downside to easing rules, making it easier to build and simplifying planning? We make government more efficient, focus the planning department on big assemblages/developments, make it easier for smaller entrants...

The fact that everyone seems so content with the real estate sales industry in Canada is absolutely crazy-making. We are being extorted by an oligopoly and paying some of the highest transaction fees in the world. All that for incredibly corrupt, unethical and unaccountable representation in transactions where incentives are poorly aligned.

 

[Northern Light]

I suspect labour and material shortages are the real constraining factors. Do they really think developers will deliberately build less (and risk other developers building more)?

I can definitely see a big developer like Oxford preferring not to release 18,000 rental units *all at once* but there are plenty of other reasons why a major development with multiple buildings is going to be built in a phased approach.

Oxford is definitely not the only building that consciously manages its pipeline as opposed to maximizing it.

That said, there are certainly other factors that contribute to 'approved' developments not moving through to the permit stage.

I would suggest that the top one is almost certainly that many applications are 'value exercises' by current property owners looking to inflate an eventual sale price to a developer.

Many applications are not 'real' in that they are not coming from a developer, but someone wishing to sell to one.

From there, I would suggest financing can be a material issue in some cases.

I would also add, however, that many developers have land assembled years, or even a decade in advance of a submission; and one reason they don't almost move on them right away, is the same reason some will hold off after approval; that the existing site may have income-production place that is desirable; and a good risk-hedge.

 

[Northern Light]

@Northern Light Sorry - added my edit _after_ you hit "Like". You may want to reread the EDIT and see if you agree with that too

I'm still down w/that statement. I'm all for easing rules in certain respects; just not in all of them!

I also agree that an inordinate focus of that, looking at both rules and fees, needs to be on opening the market to smaller players and projects.

 

[Northern Light]

While fishing for the actual Mississauga Report referred to in The Star article, I came across this one which would be of interest to this thread:

https://pub-mississauga.escribemeetings.com/filestream.ashx?DocumentId=21156

It recommends a new process for Minor Zoning Amendments for applications for 10 or fewer units, which would result in one Planning Report instead of two and roughly 1/2 the current application processing time.

 

[evandyk]

Oxford is definitely not the only building that consciously manages its pipeline as opposed to maximizing it.

I work in a big business. There are tons of reasons to "manage a pipeline" beyond profit maximization on every project. Even the biggest businesses have constraints in terms of resources they can devote at any given time, and you just can't do everything all at once, even if it's been approved and you'd like to get the money flowing.

 

[evandyk]

But yeah, when you're in an environment where prices are rising by 25%+ a year, there's not much motivation to really put a rush on your pipeline.

 

[Northern Light]

Aha! Found the Mississauga Planning Report on the Provincial Task Force.

It can be found here: https://pub-mississauga.escribemeetings.com/filestream.ashx?DocumentId=21212

I shall excerpt:

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There's a bunch more in the report, including Mississauga Plannings precise stance on every recommendation by the Task Force.

 

[Undead]

The fact that everyone seems so content with the real estate sales industry in Canada is absolutely crazy-making. We are being extorted by an oligopoly and paying some of the highest transaction fees in the world. All that for incredibly corrupt, unethical and unaccountable representation in transactions where incentives are poorly aligned.

I think many of us are furious about it. But what can the average Joe and Jane do? Clearly, the will and tools to do something are there when it's needed (Russian sanctions). I think the gov't just doesn't care.

One observation I'll make is that (in Canada) we end up with incredibly oligarchic industries that can severely limit price competition.

Everything in this country's a cartel.

 

[TRONto]

My thoughts for the changes is that we require lots of smaller players. I know people who would be making triplexes if it easier. Especially with real estate so hot these days, I would think there is plenty of investor demand to build small scale housing.

 

[allengeorge]

Ford says Ontario working to ‘cut red tape’ on housing developments as home prices rise

Ontario Premier Doug Ford said Thursday he is aware that housing is increasingly unaffordable for many people and reiterated that his government is addressing the problem by working to make it easier to approve new developments.

www.cp24.com

Not much here, but, supposed focus on ‘cutting red tape’ and building faster. I know it’s unwise to read the tea leaves from what any Premier says, but my guess is that we’ll see new legislation that tinkers with the approvals process as opposed to pushing for wholesale upzoning or more contentious proposals (and triggers a war with municipalities during an election).

In other dispiriting news, the average price of a detached house crossed 2M today in Toronto. Basically, if you’re under 40 you may as well call it’s quits on owning. Better hope you can draw from the bank of Mom and Dad, or wait until you’re bequeathed whatever they live in. No wonder young people are increasingly negative about prospects in Canada.

 

[evandyk]

Obviously we have a crisis in housing prices, but the price of a detached home is not it. People living in Toronto should not expect to live in a detached single family house. The city is too big. Tens of thousands of people move to Toronto every year, and no more single family detached houses will ever be built within the confines of the city of Toronto, so no matter what else happens in our housing market, those are never going to get cheaper.