Ontario Construction News staff writer
The Greater Ottawa Home Builders’ Association (GOHBA) is warning that rising Development Charges (DCs) are significantly impacting the affordability of new homes in Ottawa. This statement follows the City of Ottawa’s Planning and Housing Committee’s recent approval to add corporate studies to DC rates, marking the third increase since May 2024.
According to GOHBA, the latest increase will add between $350 and $650 to the cost of most new homes in Ottawa.
“While this number may seem small, when you include the new DC By-law from May, it’s the fourth increase in development changes we’ve seen this year,” GOHBA executive director Jason Burggraaf said in a statement last Wednesday (Nov. 20).
The association argues that the true extent of the DC increases is obscured by periodic changes. Data shows that from Oct. 1, 2023, to Nov. 27, 2024, DC rates for new homes have risen by an average of 28% inside the greenbelt, 23% outside the greenbelt, 26% in serviced rural areas, and 29% in unserviced rural areas.
Backgrounder: Rising Development Charges in Ottawa
To combat these rising costs, GOHBA has submitted recommendations to the provincial government urging them to strengthen the Development Charges Act.
“If it is happening in Ottawa, it is certainly happening in municipalities across the province, adding unnecessary cost to new home construction,” said Burggraaf. “Ensuring fair, transparent, and justified development charges is essential to meeting our shared housing goals.”
GOHBA has identified several issues with the current DC practices, including the lack of transparency in municipal DC reporting, the use of cash-in-lieu to fund benefit-to-existing projects, and the borrowing of DC revenues for other capital projects.
The association advocates for policies that balance the need for infrastructure funding with the goal of increasing housing supply and affordability.
