June 3, 2026
Canada Mortgage and Housing Corporation (CMHC) has released new analysis showing that reducing or eliminating development charges could significantly increase housing project viability in some Canadian cities, helping address housing supply challenges. Using its Housing Development Viability Analyzer, CMHC found that large reductions in development charges can increase viable housing projects by up to 14% in municipalities such as Burnaby, while Toronto and Vancouver could see gains of approximately 10% if charges were eliminated. The study highlights that the impact varies widely by municipality, with cities that currently impose higher development charges benefiting the most from reductions. In Toronto, eliminating development charges could add between 10,000 and 16,250 new housing units annually, addressing a substantial portion of the city’s housing supply gap. However, CMHC emphasizes that reducing development charges alone will not solve Canada’s housing affordability crisis, as municipalities rely on these fees as an important source of revenue. The report also calls for greater consistency and standardization in municipal reporting to improve benchmarking and policy analysis. Overall, the findings suggest that strategic reductions in development charges can support housing development, improve project viability, and contribute to increasing Canada’s housing supply, particularly in financially constrained housing markets.
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