“New data collected by CMHC shows development charges account for a significant part of the cost of a new housing unit in some cities,” said Mathieu Laberge, CMHC’s chief economist and senior vice-president of housing insights.
“Charges vary greatly across the country both in their magnitude and on how they are charged.”
He added that “understanding development charges is key to understanding housing supply and affordability across Canada. They shape both the cost of housing and the pace at which communities can grow, while being an important funding source for a broad range of municipal infrastructure.”
For a two-bedroom apartment, CMHC’s pilot data showed per-unit charges of about $39,600 in Ottawa and $121,500 in Markham, equal to 8.2% and 15.7% of average new condo prices in those markets.
In the Greater Toronto Area, charges on a single-detached home ranged from roughly $125,000 in Pickering to about $180,600 in Toronto, or close to 9% of the average absorbed price, CMHC found.