REAL ESTATE TALK

Real Estate Talk

Just Not Enough Homes to Go Around

By Jay Lough Hayes, Peterborough Realty Inc. 705-772-1025

With the 500,000 new immigrants coming to Canada in 2023 plus the current housing shortage experienced, Ontario is laying down some definite … ’ground’ rules to get shovels in the ground and homes built, and built faster.

Ontario needs to build 1.5 million homes in the next 10 years. But not in Peterborough, the 32nd largest city in Ontario. The Place to Grow Act puts Peterborough’s 2031 population at 103,000. That’s another 20,000 people who would require roughly 6,600 new housing units.

An increasing population will create even more demand for all types of housing which creates a need for more skilled labour and jobs which creates a solid foundation for the economy. But thousands of skilled trades workers are close to retirement, increasing the shortage of trades people in the housing sector.

In the Peterborough area, development lands to create housing is at an all time low with develop ment approval timelines at an all time high. De velopment approval delays continue to increase due to Nimbyism - (not in my backyard) and the ability to finance new housing communi ties diminishes with increased costs and delays. Peterborough & Kawarthas building and plan ning departments haven’t increased staff levels much over the past 30 years. Without the staff, paperwork has greater delays which can cost the home builders more cash which is passed on to homeowners.

The provincial growth plan mandates a 50% population increase by 2051 for Peterborough & Kawarthas which can only be achieved through densification which existing communities oppose. NIMBY.

The Provincial Government provides a minimum standard set of rules and guidelines that munici palities must follow but every municipality cre

ates their own local by-laws to govern. Then Con servation Authorities enforce provincial legislation to ensure that local natural heritage and water sheds are protected.

In 1992 the development charge rate for a single family home was $2,500 per housing unit (HU)but as of Aug 2022, the development charge rate is, on average, $50,000 per HU with increases every year. These rising costs contribute significantly towards the rising cost of housing. Have you calculated the Land Transfer Tax on a single family home lately? Scary!

Ontario Home Builders Association released a 5 point plan to address making homes more afford able by speeding up approval times and eliminat ing red tape.

The cost of building a new home already has fees and taxes account for up to 25%.

Laying the infrastructure groundwork for future growth by ensuring servicing and transportation infrastructure are prioritized. Peterborough is landlocked and needs to expand its borders: Un fortunately Peterborough is not on the list of 29 housing target centres in Ontario’s more homes built faster act. And finally…

Take politics out of planning to ensure local deci sion making does not undermine the provision of new housing.

We really need to cut the cord and let Peterborough grow, welcome new growth while encour aging, attracting new businesses along with new families. Expand, Excite, Educate and in the words of Star Trek…Engage.

Jay Lough Hayes has been a real estate sales representative for 36 years and services the Peterborough, Victoria, Durham, Northumberland Counties and all points in between.