A quiet shift is underway in Ontario’s housing landscape, one that’s sparking fierce debate. The province is considering a temporary halt to a policy requiring developers in three major cities – Toronto, Kitchener, and Mississauga – to include a percentage of affordable housing units in new buildings near vital transit lines.
The rationale, according to the government, centers on a cooling housing market. Rising interest rates and construction costs have created significant headwinds for developers, making the inclusion of affordable units financially challenging. The ambitious goal of building 1.5 million homes in ten years now feels increasingly distant.
This policy, known as inclusionary zoning, was intended to address a critical need: affordable homes in areas with convenient access to public transportation. But officials now argue that forcing developers to meet these requirements could stifle new construction altogether, leading to project cancellations and a further reduction in housing supply.
Toronto’s Mayor Olivia Chow vehemently disagrees, stating the current five per cent requirement is already insufficient. She had been advocating for a significantly higher target – 20 to 30 per cent – believing that access to affordable housing is a fundamental necessity for residents.
The concerns extend beyond Toronto. Mississauga’s Mayor Carolyn Parrish expressed “deep concern,” acknowledging the financial burden on builders but emphasizing the city’s inability to subsidize these crucial affordable units. The need is undeniable, yet the path forward remains unclear.
Builders themselves are largely welcoming the proposed pause. They argue that inclusionary zoning, while well-intentioned, creates a chilling effect on development. The cost of providing affordable units, they contend, is ultimately passed on to other buyers and renters, creating a hidden expense for everyone.
Critics warn that this is a critical moment being lost. The opportunity to integrate affordable housing near newly established transit lines – like the Finch West LRT and the upcoming Eglinton Crosstown – is fleeting. Once these areas are developed, the chance to create truly accessible communities may disappear forever.
Opponents also point to a troubling rise in homelessness across the province, with approximately 85,000 people experiencing homelessness last year, a significant increase from the previous year. This decision, they argue, represents a step backward in addressing this growing crisis.
The proposal is currently open for public comment, a brief window for stakeholders and citizens to weigh in on a decision that will profoundly shape the future of affordable housing in Ontario. The debate underscores a fundamental tension: balancing the need for increased housing supply with the urgent demand for affordability.
The coming weeks will reveal whether the province will maintain its course, potentially sacrificing long-term affordability for short-term construction gains, or if public pressure will compel a reconsideration of this controversial policy.
