3/3/2026
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Posted in Ontario Real Estate by Vanguard Realty | Back to Main Blog Page
Ontarians are increasingly likely to blame government-imposed costs – not just market forces – for making housing unaffordable, according to new polling released by the Ontario Real Estate Association (OREA).
The latest Housing Affordability in Ontario: Perceptions, Impacts, and Solutions (Wave 6) survey, conducted by Abacus Data, found that 62% of Ontarians surveyed say property taxes and government fees have at least a moderate impact on their ability to afford housing in their community.
For mortgage lenders and brokers already grappling with rate-driven stress tests and renewal anxiety, the findings add another layer of client concern: how municipalities and the province structure and disclose the costs that ultimately end up in a buyer’s monthly payment.
“In particular, Ontarians have mixed sentiments towards municipal development charges (MDCs), accepting the idea in principle but lacking confidence in the practice,” the new OREA report said.
“While many accept the logic of using MDCs to pay for infrastructure needed to support growth, two in five Ontarians (42%) believe it is unfair to pass MDC costs onto homebuyers, and many agree that MDCs make housing less affordable (71%).”
In Ontario alone, Canada Mortgage and Housing Corporation (CMHC) found development charges could represent 8 to 16% of a new condo price and up to 9% of the cost of a single-detached home in Toronto.
“It’s clear that Ontarians want their municipal leaders to be transparent and accountable when it comes to collecting and managing the fees that enable infrastructure and growth for much-needed homes across the province,” OREA president-elect Kim Fairley said.
“If we want to create greater transparency and oversight with the costs that impact home prices, municipalities should be required to publish reports on how MDCs are used and allow the use of unspent MDC revenue to address other government-imposed costs, like property taxes.”
Much of the skepticism lay in how MDCs were managed. According to the survey, only 26% feel confident MDC revenues are used appropriately, and only 22% believe municipalities are transparent about how funds are spent.
Fully 70% of respondents are at least somewhat concerned that some municipalities have accumulated large surpluses of unspent MDC revenue. Those perceptions built on earlier OREA polling that showed housing affordability has become a top priority for more than half of Ontarians and that a strong majority believed provincial policy decisions have made it harder to buy a home.
To address Ontario’s supply crunch and the infrastructure costs tied to new construction, OREA and Ontario REALTORS continue to push a suite of measures, including allowing water and wastewater services to be provided through a municipal services corporation, ending exclusionary zoning, enabling more commercial-to-residential conversions along transit corridors, and embracing factory-built housing.
“The dream of homeownership continues to be alive for young Ontarians and their families, but they need help to get there,” Fairley said.
“Decision-makers need to embrace policy solutions and actions that lower the cost of homebuilding and speed up the delivery of new housing supply in order to bring affordability closer within reach.”
In late 2025, Federal Housing minister Gregor Robertson sidestepped a direct commitment to the Liberal government’s election pledge to halve municipal development charges.
Source: Canadian Mortgage Professional
Home Buyers, House Prices Toronto, Housing Affordability, Ontario Living
