1K 
With the Greater Toronto Area experiencing unprecedented population growth in recent years, a new study by the Building Industry and Land Development Association (BILD) warns of a worsening housing crisis unless governments act immediately. The 2024 Municipal Benchmarking Study, developed by Altus Group Economic Consulting, reveals that the difference between the GTA's housing stock and population growth is greater than at any point in the past 50 years.
"This is a bright red warning light on the dashboard for all levels of government," says David Wilkes, President and CEO of BILD. "Without bold steps, the housing crisis in the GTA is going to get far worse in the years ahead."
The study highlights that while immigration levels have reached record highs, driving rapid population growth, new home construction has not kept pace. Despite the population growing slower than it did pre-COVID as some residents relocate to other parts of Ontario and Canada, the overall surge continues to outpace housing development. The ratio of new housing units to the population increase is at its lowest since data collection began in 1972.
Adding to the concern is a significant decline in development applications, threatening future housing supply. Since peaking in 2021, submissions have decreased sharply due to economic conditions and policy changes, such as the 2023 removal of site plan control for projects with fewer than ten units. This downturn foreshadows fewer housing starts in the coming years.
Approval timelines for new housing projects remain a substantial hurdle. While some municipalities have improved their processes, the average approval time across the GTA still stands at 20 months. These prolonged timelines add significantly to the cost of new homes. The study estimates that each month of delay adds between $2,673 and $5,576 to the cost of a unit, for an additional $43,000 to $90,000 per home over the average approval period. These costs inevitably trickle down to homebuyers, further straining affordability.
Municipal fees have also risen markedly since 2022, adding to the financial burden on new developments. On average, municipal fees, which include development charges, parkland levies, and other government-imposed costs, now contribute $122,387 to the cost of a condominium and $164,920 to a single-family home in the GTA. In some cases, these fees make up nearly 25% of a new home's total cost. For instance, fees per unit range from approximately $102,000 in Bradford West Gwillimbury to just over $195,000 in the City of Toronto.
"Housing affordability continued to deteriorate since the time of the last report," Wilkes notes. "Average rents have reached $1,830 in the GTA and $1,550 in Barrie. In the highest-cost areas, households must devote over 60% of their monthly income to servicing a mortgage." The study highlights that the GTA’s government fees and taxes — among the highest in Canada — exacerbate construction costs and, by extension, directly impact housing affordability.
BILD is calling for urgent government intervention to address these structural challenges. "To improve housing affordability, governments must act to accelerate approvals and reduce the overall tax burden they are placing on new home buyers," Wilkes emphasizes.
The study serves as a critical call to action, highlighting the pressing need for policy adjustments to tackle the GTA's housing challenges. Collaboration among policymakers, industry stakeholders, and the community is essential to implement solutions that ensure adequate housing supply and affordability for current and future residents.
* * *
UrbanToronto has a research service, UrbanToronto Pro, that provides comprehensive data on construction projects in the Greater Toronto Area—from proposal through to completion. We also offer Instant Reports, downloadable snapshots based on location, and a daily subscription newsletter, New Development Insider, that tracks projects from initial application.
