Introduction

Ontario is taking decisive action to tackle the critical issue of housing affordability. With a growing population and soaring real estate prices, the government has introduced the More Homes Built Faster Act on October 25, 2022. This legislation aims to boost housing supply and reduce costs. In this article, we delve into the act’s key provisions, its potential impact on the housing market, and its implications for various stakeholders.

The More Homes Built Faster Act: An Overview

The More Homes Built Faster Act is an extensive legislative initiative to diversify housing options in Ontario. Its goal is to ease the construction process by introducing measures that simplify regulations. Builders will now be able to construct up to three units on a single residential lot without needing bylaw changes or municipal permissions. This enables the development of “gentle density” housing like triplexes and garden suites, bridging the gap between single-family homes and high-rise apartments.

Beyond fostering housing variety, the act promotes affordable and attainable housing. Ontario plans to waive development charges, parkland dedication levies, and community benefit fees, reducing costs for builders and enhancing affordability for buyers and renters. The government will assign housing targets to municipalities, requiring them to outline strategies for achieving these targets. This cooperative approach aims to efficiently meet the province’s housing needs.

Implications for Ontario’s Housing Market

The More Homes Built Faster Act has spurred speculation about its impact. While its objective is to increase housing supply and lower prices, the full effect may take time due to economic uncertainties and labor shortages in the construction industry. Despite constructing 1.5 million homes, Ontario’s population is projected to grow by 2 million in the next decade, with a significant portion in the Greater Golden Horseshoe Region. The increased supply may slow price appreciation but might not fully restore affordability. Nonetheless, the government’s vision aligns with research from the Canadian Mortgage and Housing Corporation (CMHC), indicating a substantial housing stock increase is needed for enhanced affordability.

The Road to a Balanced Market

Addressing housing affordability in Ontario transcends supply augmentation. The government is implementing measures to reduce speculation and vacant homes, aiming for a more balanced market and bolstered buyer confidence. An affordable housing market could spur increased mortgage activity as buyers gain confidence. This might create opportunities for property and mortgage investors to expand portfolios. Private mortgages are on the rise, indicating growing interest in alternative mortgage options.

Ontario’s residential mortgage landscape is evolving, and private mortgages are becoming pivotal. As the housing market adjusts to new legislation, investors might uncover opportunities in the dynamic mortgage market.

Conclusion

The More Homes Built Faster Act is a pivotal stride toward resolving Ontario’s housing affordability crisis. By boosting housing supply and supporting affordability, the government seeks a sustainable and balanced housing market. Though the full impact may unfold over time, the legislation aligns with research on housing shortages and affordability. Stakeholders must stay informed and adapt to changing market conditions. Through these efforts, Ontario can forge a brighter future, ensuring accessible housing for all residents.