June 11 - Impact of government fees and charges on the cost of a new home in the GTA
June 11, 2013
Impact of government fees and charges on the cost of a new home in the GTA
Greater Toronto, June 11, 2013 - The issue of home affordability poses a significant challenge for new homebuyers in the GTA. A new study, released by the Building Industry and Land Development Association (BILD), shows that on average, government fees and charges amount to more than one-fifth of the cost of new home.
"Right now, municipalities across the GTA are looking at how they are going to pay for critical infrastructure that will be used by not only new residents, but existing ones as well," said Bryan Tuckey, President and CEO of BILD.
"Increasing development charges and other government fees is not the answer. New homebuyers across the GTA are already doing their fair share to support the development of essential public infrastructure."
It is estimated that in 2012 alone, the industry and new homebuyers contributed $1 billion toward the construction of growth-related infrastructure like sewers, roads and transit in the GTA through development charges paid to municipalities.
To illustrate the increasing cost of government fees and charges on new homes across the GTA, BILD commissioned a study by Altus Group. The study looks at six municipalities across the GTA - Town of Oakville, City of Brampton, City of Markham, Town of Bradford-West Gwillimbury, Town of Ajax and the City of Toronto.
The purpose of the study is to help make sense of the variety of fees and charges collected by government and the impact on the cost of a new home.
The total government fees and charges amount to an average of $118,400 on a new single-detached home, which is 23 per cent of the overall cost, and $64,400 on a new high-rise home, which is 20 per cent of the cost. Since 2004, for the municipalities studied in the report, development charges have increased between 143 per cent and 357 per cent and they continue to rise.
Click HERE for a copy of the report and HERE for an informative backgrounder.
With more than 1,400 members, BILD, formed through the merger of the Greater Toronto Home Builders' Association and Urban Development Institute/Ontario, is the voice of the land development, home building and professional renovation industry in the Greater Toronto Area. BILD is proudly affiliated with the Ontario and Canadian Home Builders' Associations.
For more information, contact:
416-391-3452 or 416-543-3903
Manager, Marketing & Media Relations
416-391-3450 or 416-843-4898