Canada Housing Market

The Ontario government has announced new planning rules to address the province’s housing shortage, aiming to spur a “long-term building boom.” Housing Minister Paul Calandra introduced the new provincial planning statement at the Association of Municipalities of Ontario conference, emphasizing the need for a consistent approach to urban planning across the province. The goal is to give municipalities the tools and flexibility to meet Ontario’s housing targets.

Despite these efforts, Ontario is still behind on its home-building goals. The government had committed to building 1.5 million homes by 2031, but as of mid-2024, only 11 out of 50 municipalities are more than halfway to their targets. The province has even started counting long-term care beds in its housing totals to boost numbers.

Calandra acknowledged that global economic challenges and rising interest rates have slowed construction, but he emphasized that the new planning rules are designed to prepare Ontario for increased building as conditions improve. The updated planning statement is shorter and simpler, aiming to streamline the process for municipal planners.

A key focus of the new rules is to encourage housing development near transit hubs and on underutilized lands like shopping plazas. However, some critics, including Environmental Defence, worry that these changes could lead to more low-density sprawl.

The success of these new planning rules will depend on their implementation at the municipal level and the government’s ability to overcome current economic challenges.

Source: Ontario announces new planning rules meant to boost home building | CBC News