Toronto board of trade calls for regulatory reforms to spur housing growth

The Toronto Region Board of Trade is pushing for regulatory reforms to boost housing growth in Ontario, which is on track to fall short of its goal of constructing at least 1.5 million new homes by 2031. The board published a report on Thursday, stating that this target is unachievable even if production rises over the next five years. Ontario is projected to fall over 550,000 homes short of the required pace by 2029, based on budget forecasts.

Board president and CEO Giles Gherson emphasized the severity of the housing crisis, noting that despite efforts to close the gap, it remains very large. Even with immediate ambitious reforms, municipalities would need to update plans, amend zoning bylaws, align infrastructure investments, service land, and process applications - a process that could take years, making the 2031 goal unrealistic.

Gherson highlighted that rules around zoning and building codes are "very fragmented" and "out of date" across the province. In Toronto alone, builders face dozens of different requirements across the city, adding significant cost and delay to housing development. This issue impacts the city's ability to attract and retain its workforce, as well as the social fabric, as the next generation perceives home ownership as a pipe dream.

The report recommends developing a provincial zoning code that provides a standard framework and terminology for every municipality. This code could establish a baseline for housing types that can move forward without special approval, starting with townhouses and multiplexes. It also proposes key changes around building codes, suggesting an assessment of every requirement's cost to build, run, and maintain over a building's life.

Additionally, the report recommends allowing single-stair buildings up to six storeys and smaller elevators in smaller buildings, provided safety and accessibility are still prioritized.

Gherson pointed to Edmonton as an example of a city with more flexible, permissive zoning, resulting in a higher rate of multiplex construction. He emphasized the need to learn from cities that have successfully grown housing. The call for action is made as housing affordability challenges persist in Toronto, even as prices have declined over the past year. Despite the decline, Toronto-area home prices have increased significantly more than inflation over the past decade, making housing out of reach for many residents.