Affordable Housing could be the biggest issue in Canada and very much so in the Greater Toronto Area with market values having doubled and tripled with wages barely seeing a rate of inflation increase.
Home ownership used to be an achievable dream, now it is basically impossible to save a 20 percent down payment and ongoing mortgage costs.
I myself am developing a plan for Durham Region and it's 8 area municipalities for Affordable Housing, development charge exempt areas. The idea is that where we already heavy services as in water and sewer and new growth capacity, we look at reducing the development charges on each home, which could result in $40000 in savings as a start toward affordable housing.
While existing home owners are benefiting from the equity in their homes and real estate agents are making unheard of commissions (the same 200-300 percent) we need to look at all variables that go into the price of a house.
Incentives to lower commissions through tax rebate incentives for real estate agents is a key area where the federal government can assist.
The solution is there, the coordination of incentives is what is most important. Development charge exemptions from the Region, Municipality and School Board, tax incentives to lower commissions and the provincial Ministry of Housing looking at smaller unit's within the building code are all what needs to be done. I look at areas in California, Las Vegas and in Europe where the plan is working, let's use their good examples and create a new level of housing in Durham, where owning a home is achievable for almost anyone.
Till next week
John Mutton
President and CEO
Municipal Solutions - Energy and Infrastructure
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