BILD: Peel's move to reduce development charges is a game-changer

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Region of Peel’s action tackles head-on the affordability issues that have paralyzed new home construction across the GTA

In a bold and commendable move, the Region of Peel has taken decisive action to address one of the most pressing challenges facing Ontario’s housing market: the cost to build crisis.

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In late June, Peel Regional Council voted to reduce residential development charges (DCs) by 50%, a decision that will significantly improve the financial viability of new home construction in the region.

The Building Industry and Land Development Association (BILD) applauds the leadership of Peel Regional Chair Nando Iannicca, Mississauga Mayor Carolyn Parrish, and the entire Peel Regional Council.

This reduction, effective from January 29, 2025 through to November 13, 2026, is a significant and material shift. It tackles head-on the affordability issues that have paralyzed new home construction across the Greater Toronto Area (GTA).

For too long, soaring development charges, escalating construction and financing costs, and inflationary pressures have made new projects financially unfeasible. Sales have slumped, housing starts have dwindled, and the long-term pipeline of homes has come under threat.

Everyone needs to do their part to address this challenge, and we are seeing price adjustment by industry to reflect the new market reality. Peel’s action represents another critical step to tackle the current cost to build challenges that are limiting the ability of those seeking to live in the GTA to buy new homes.

Credit is due to the Minister of Municipal Affairs and Housing, the Honourable Rob Flack, for his which made this reduction possible. The extension of the program beyond October 2025 will depend on a further financial agreement with the province – and one we strongly hope to see realized.

Additionally, Peel’s decision to consult with the Ministry on a proposed utility model for water and wastewater reinforces their commitment to systemic, long-term solutions for infrastructure and housing.

Importantly, this decision by Peel mirrors the leadership demonstrated by the City of Mississauga earlier this year. In January, Mayor Parrish and Mississauga Council made a firm commitment to significantly lower municipally added costs on new homes.

That decision will help spark momentum across the region and has clearly demonstrated what municipal leadership in a housing crisis looks like.

Coordinated actions such as these will spur the construction of not only more homes but also much-needed purpose-built rentals and commercial buildings in the region.

This will benefit families, workers, and businesses looking to call Peel home – a win-win for economic growth and community development.

We now call on other municipalities across the GTA to take similar action. The challenges are well understood. New home owners need bold action to lower the cost to build, to facilitate the building of new homes and to deliver the housing the communities in the GTA so urgently need.

Dave Wilkes is President and CEO of the Building Industry and Land Development Association (BILD), the voice of the home building, land development and professional renovation industry in the GTA. For the latest industry news and new home data, visit www.bildgta.ca.