Recent polling finds over 6 in 10 Ontarians believe property taxes and government fees impact housing affordability in their community.
New polling from the Ontario Real Estate Association (OREA) has found that Ontarians are increasingly concerned about housing affordability, and a growing share of renters and aspiring homeowners no longer believe that homeownership is realistically within reach.
Conducted by Abacus Data on behalf of OREA, the Housing Affordability in Ontario: Perceptions, Impacts, and Solutions (Wave 6) survey found that Ontarians are beginning to recognize that housing costs and the factors impacting affordability are no longer seen as purely market-driven – 62% of Ontarians surveyed say property taxes and government fees have at least a moderate impact on their ability to afford housing in their community.
In particular, Ontarians have mixed sentiments towards municipal development charges (MDCs), accepting the idea in principle but lacking confidence in the practice. While many accept the logic of using MDCs to pay for infrastructure needed to support growth, two in five Ontarians (42%) believe it is unfair to pass MDC costs onto homebuyers, and many agree that MDCs make housing less affordable (71%).
Much of the distrust lies in how municipalities’ management of MDCs are perceived – only 26% feel confident MDC revenues are used appropriately, and only 22% believe municipalities are transparent about how funds are spent. 70% of respondents are at least somewhat concerned that some municipalities have accumulated large surpluses of unspent MDC revenue.
“It’s clear that Ontarians want their municipal leaders to be transparent and accountable when it comes to collecting and managing the fees that enable infrastructure and growth for much-needed homes across the province,” said OREA President-Elect Kim Fairley. “If we want to create greater transparency and oversight with the costs that impact home prices, municipalities should be required to publish reports on how MDCs are used and allow the use of unspent MDC revenue to address other government-imposed costs, like property taxes.”
On a provincial level, consistent with previous surveys, the rising cost of living (83%) and housing affordability (73%) remain firmly entrenched as top priorities that Ontarians want the provincial government to focus on, reinforcing the sense that pressures are persistent rather than temporary. The fact remains that homeownership continues to hold symbolic and practical importance, with more than two-thirds of non-homeowners (68%) saying they would like to own someday, including 88% of those aged 18-29.
Nearly 4 in 5 (79%) Ontarians want the Government of Ontario to make housing affordability a priority, reflecting the idea that housing has become a test of government sincerity and urgency, not just policy design. Anxiety about housing is near-universal among Ontarians across age groups and political party lines, with 86% expressing concern about housing in Ontario today.
To address Ontario’s housing supply crisis, OREA and Ontario REALTORS? have continually put forward action items for decision-makers to take that will have the most impact, including:
- Allowing water and wastewater services to be provided through a municipal services corporation, which would lower the upfront costs of building homes by allowing them to borrow and amortize costs among customers instead of using development charges.
- Implementing land use changes to end exclusionary zoning, in order to unlock more housing supply in high-demand neighbourhoods.
- Modernizing zoning to support commercial-to-residential conversions and greater density along transit corridors, which would bring more supply to market and save Ontarians time and money when commuting to work.
- Embracing factory-built housing, which offers an innovative solution that can quickly bring safe, high-quality housing to market.
“The dream of homeownership continues to be alive for young Ontarians and their families, but they need help to get there,” said Fairley. “Decision-makers need to embrace policy solutions and actions that lower the cost of homebuilding and speed up the delivery of new housing supply in order to bring affordability closer within reach.”
To read the full survey report, please click here.
SOURCE, OREA
To learn more, visit OREA ONTARIO REAL ESTATE ASSOCIATION
