Ontario’s latest housing legislation is already drawing criticism – with some experts warning it could actually make the housing crisis worse.
Bill 98, also known as the Building Homes and Improving Transportation Infrastructure Act, 2026, is being positioned as a way to speed up housing construction. But critics say it may do the opposite.
What Bill 98 Is Supposed to Do
The province says the bill is aimed at:
- Accelerating housing construction
- Standardizing planning rules across municipalities
- Improving infrastructure and transit coordination
The broader goal is to build more homes, faster across Ontario.
Why Critics Say It Could Backfire
Housing advocates and policy experts argue the bill fails to address the real barriers to housing supply.
Instead of fixing zoning and density issues, critics say Bill 98 removes key tools from municipalities.
Concerns include:
- Eliminating parts of the Toronto Green Standard
- Limiting municipal planning flexibility to just 12 zoning designations
- Removing tools like site plan control, used to improve efficiency and design
- Reducing local control over transit planning and housing development
These changes could make it harder for cities to plan efficient, higher-density housing.
Impact on Housing Supply
Experts say Ontario’s housing shortage isn’t just about building more homes – it’s about building the right kind of homes.
Critics argue the province should focus on:
- Mid-rise and multiplex housing
- Density within existing neighbourhoods
- Reducing outdated zoning restrictions
Instead, Bill 98 may encourage:
- More suburban sprawl
- Less efficient land use
- Slower progress on affordable housing
The Bigger Issue: What’s Actually Causing the Shortage
According to housing advocates, Ontario’s housing shortage developed despite strong construction activity in recent years.
The issue isn’t capacity – it’s how that capacity is used.
Key concerns include:
- Too much focus on low-density housing
- Policies that favour sprawl over urban density
- Barriers to building efficient housing types in cities
What This Signals for the Market
For buyers:
If supply continues to lag or shift toward less efficient housing, affordability challenges may persist.
For developers:
Changes to municipal powers could create new uncertainty around planning and approvals.
For municipalities:
Reduced control may limit their ability to respond to local housing needs.
References
Environmental Defence. (2026, April 1). Bill 98 ignores efficient housing and could deprive municipalities of key tools.Retrieved from https://environmentaldefence.ca
Canada Housing Market 
Leave a comment