Politik

Die Regierungen der Bundesstaaten Ontario und Ontario geben 8,8 Milliarden US-Dollar aus, um die kommunalen Entwicklungsgebühren zu senken

30.03.2026

https://www.theglobeandmail.com/canada/article-federal-ontario-governments-to-spend-billions-to-lower-municipal/

Neon_Raccoon_00 on 30.03.2026 4:28 p.m.

While this is a good thing, what forces the developer to actually lower the purchase price and not just pocket the profit?
Medea_From_Colchis on 30.03.2026 4:45 p.m.

Let’s see if this works. I’ve always been of the opinion that municipalities were the worst level of government to handle revenue generation for supportive infrastructure development for housing projects. I’m usually not huge on leaving it to the market, nor am I fully convinced that alleviating some development costs will result in more affordable homes. It still remains to be seen if this will result anything substantial towards housing costs, but I am at least optimistic to see they are addressing one side of the issue (municipal funding shortfalls).
differing on 30.03.2026 5:03 p.m.

So a buyer has a budget of $800k. It doesn’t matter if that $800k is made up of taxes, development fees, commissions, etc; their budget is still $800k. Without fees and taxes, a ton of construction that is currently unprofitable will now be feasible, as a developer can go to a lender and guarantee they have buyers for that $800k house that the can construct for $700k.

What people don’t understand is that developers aren’t Habitat for Humanity. If they do not have a profitable business plan, they will simply not build, because they will not get financing for their materials and labour. It’s a free market that is driven by a profit incentive.