Cost of Building New Homes in Toronto to Rise After City Council Hikes Development Fees

Cost of Building New Homes in Toronto to Rise After City Council Hikes Development Fees
A person walks by a row of houses in Toronto on July 12, 2022. The Canadian Press/Cole Burston
Andrew Chen
Updated:
0:00

Toronto residents looking to rent or own a new home will face higher expenses after city council voted this week to significantly increase development charges, which will potentially add tens of thousands of dollars to the cost of building new homes.

Development charges are one-time fees collected by municipalities when a building permit is issued and are used to subsidize the cost of developing the public infrastructure needed to provide municipal facilities, such as roads, transit, water, sewers and community centres along with fire and police services.