Cutting development charges could make up to 14% more housing projects viable: CMHC
OTTAWA, ON, June 3, 2026 /CNW/ - Updated analysis from Canada Mortgage and Housing Corporation (CMHC) shows that reducing or eliminating development charges could increase the number of financially viable housing projects across Canadian cities, with gains of 9-14% in cities with higher development charges.
Building on CMHC's Development Charges and Fees Survey released in December 2025, the updated dataset now covers 40 municipalities and is paired with new modelling to assess how these charges affect housing project viability.
In this latest article, CMHC's Chief Economist, Mathieu Laberge introduces CMHC's Housing Development Viability Analyzer and examines how reducing development charges affects project viability across markets, with impacts varying widely between municipalities. The article also explores the trade-offs of reducing development charges, including their impact on housing supply and the need for greater data consistency and transparency.
Read the full article on CMHC's website.
Quote:
"Reducing development charges can improve housing project viability, especially in communities where they are highest. But meaningful gains in supply require substantial reductions, and they are only one part of the solution," said Mathieu Laberge, CMHC's Chief Economist. "Improving affordability will require a broader approach, including improved land-use regulation and increased scale and innovation to boost productivity in the construction industry."
Quick Facts:
- CMHC is releasing updated data tables for 40 municipalities across Canada, expanding from the original 30 to include 10 newly added municipalities.
- In Metro Vancouver municipalities, development charges have increased by around 10% since December 2025, largely due to higher regional charges. Metro Vancouver has announced that it's seeking provincial government approval to roll back charges to 2025 levels.
- Alberta, Ontario and Quebec report minimal changes.
Related links:
- Supplying smarter: Learning to make housing supply more responsive | CMHC
- Unlocking housing supply: Why scale really matters | CMHC
- Modernizing housing data: Closing the gap for better solutions | CMHC
- Why Canada's housing supply gap exists and how to fix it | CMHC
- Framework for change: Productivity in housing construction | CMHC
- What is Canada's potential capacity for housing construction? | CMHC
For 80 years, CMHC has been the foundation of Canada's housing system, promoting stability and sustainability. CMHC's mortgage insurance products support access to home ownership and the creation and maintenance of rental supply. CMHC research and data help inform housing policy. By facilitating cooperation between all levels of government, private and non-profit sectors, CMHC contributes to advancing housing affordability, equity, and climate compatibility. CMHC actively supports the Government of Canada in delivering on its commitment to make housing more affordable.
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SOURCE Canada Mortgage and Housing Corporation (CMHC)
For more information, or to request an interview with Mathieu Laberge please contact CMHC Media Relations: [email protected]
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