Toronto has the worst housing affordability in the world, and experts say policies must change immediately!

The 2025 Global Cities Index shows that Toronto is one of the cities with the worst housing affordability in the world. The Oxford Economics Institute points out that Toronto residents "spend a higher proportion of their income on housing than almost all cities globally."

Despite the recent federal government commitment to eliminate GST (Goods and Services Tax) on homes below $1 million for first-time buyers, critics believe that rigid housing policies, high development fees, and slow approval processes are truly making the market unattainable for most buyers.

Frank Clayton, a senior researcher at Toronto Metropolitan University, said that development fees in Toronto could be as high as CAD 100,000, and in some parts of the GTA, they could exceed CAD 200,000.

Prime Minister Carney once promised to assist municipalities in reducing development fees by 50% through additional grants to the provincial government, but no specific timetable has been provided yet.

Clayton pointed out: "If the city collects CAD 200,000 upfront, developers will pass this cost onto home prices. Otherwise, no one would want to build houses."

Clayton believes that the three main reasons for the housing crisis are:

High costs; rigid planning regulations; persistent strong demand (especially pressure from new immigrants).

Last year alone, the GTA region welcomed nearly 300,000 new immigrants, but the number of newly built homes reached a historical low. GTA new home sales have hit record lows for seven consecutive months.

Although various levels of government have introduced new bills including accelerated construction, most experts still believe that if comprehensive and rapid reforms are not carried out in areas such as zoning policies, development fees, tax systems, and approval timelines, the problem of housing affordability will continue to worsen.

"The time for discussion has passed, and immediate action must be taken now."

Original article: https://www.toutiao.com/article/1834387668123648/

Disclaimer: This article represents the views of the author only.