Premier Doug Ford’s housing policy has been a topic of significant discussion and debate over the past two years. His administration has made ambitious promises and taken steps to address the housing crisis in Ontario. However, the outcomes have been mixed, with successes overshadowed by significant setbacks.
A key component of Premier Ford’s housing policy was the target of building 1.5 million homes over 10 years. This ambitious goal was set in response to a government-commissioned housing task force report that highlighted the severe shortage of housing in Ontario. The report noted that house prices in the province had nearly tripled in the last decade, far outpacing income growth. The shortage of housing was not only affecting affordability but also harming the economy, as businesses and public services struggled to recruit and retain workers due to the lack of nearby housing.
The Premier outlined his housing vision at FordFest in Kitchener in September 2023, stating, “You can’t find a home for under $500,000 anywhere in this province, but as sure as I am standing here, we’re going to make that available to young people, people that are renting right now that have a dream of home ownership.”
He concluded his speech with a promise to build 1,600 square-foot homes with “finished basements that owners can rent out, backyards with fences, paved driveways.”
Why is Alberta achieving this goal and Ontario is not? At a high level, these differences can be attributed to:
- Development charges (DCs): In Alberta, DCs are significantly lower—about one-quarter of those in Ontario. Addressing this disparity will require tough discussions with municipal governments. Ultimately, the province controls this legislation and must take responsibility for ensuring an effective municipal finance system.
- Approval times: In Ontario, development approvals take 2 to 3 years, whereas in Alberta, they average around four months. Edmonton has been working on streamlining and automating its permitting process to expedite simpler applications. At the end of day, time is money—delays drive up costs which need to be factored into project pricing.
- Land use policy: Alberta generally has more flexible policies around modest increases in density.
- Urban growth: Ontario prioritizes increased density, which aligns with planners’ visions for urban centres. However, this approach does not always align with the aspirations of many middle-class families who want homes with yards where they can raise their children. The greenbelt around the Greater Toronto and Hamilton Area (GTHA) severely limits growth, making outward expansion almost impossible. In 2022, efforts to open parts of the Greenbelt for housing development were mired in controversy, leading the Premier to reverse the decision, admit it was a mistake, and commit to keeping the Greenbelt intact.
The focus on increasing the supply of housing has resulted in some progress in addressing the shortage. The government’s efforts to streamline approval processes and find land for development are steps in the right direction. Housing starts show an increase in new purpose-built rentals and condominiums, but single-family housing activity is almost nonexistent.
At the annual RESCON meeting on January 27, the Premier highlighted that the government is setting ambitious targets for city growth, cutting red tape, reducing municipal fees, and removing HST on purpose-built rental projects. Queen’s Park is investing over $3 billion in water, road, and bridge improvements, which he claims will enable the construction of 660,000 new homes. While these are all helpful steps, there have been no tangible outcomes.
Without more dramatic action, the only way first-time homebuyers will afford the dream homes the Premier has described is by moving to Alberta.
Independent Opinion
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