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HOUSING AFFORDABILITY

Ottawa is Facing a Housing Affordability Crisis

Ottawa’s housing crisis has reached a breaking point. Housing attainability and the cost of living are top issues for residents, and homebuilders share this concern. Every day, we see how rising costs are putting home ownership out of reach and threatening the ability of working families to stay and grow here in Ottawa.

Why is housing So Expensive?

Ottawa residents know housing costs are rising but the reasons aren’t always clear. Multiple factors are driving up the price of a new home, including:

  • Rising construction and land costs are pushing up the base price of every new home.
  • Economic pressures from higher mortgage rates to low wages not aligned with inflation are locking residents out of the market.
  • Government-imposed taxes, fees, and charges like development charges, HST, and land-transfer tax adds tens of thousands of dollars to the final price of a new home.

GOHBA’s Plan to Support Increased Affordability

Solving Ottawa’s housing crisis requires shared responsibility. Residents expect homebuilders and all levels of the government to step up and take more action. We are heartened to see the City announce the steps to greatly accelerate housing with the introduction of the Housing Acceleration Plan and the New Zoning By-law.

GOHBA has identified the following three priority policy actions to stimulate building and restore affordability:

  1. Lower Development Charges to Reduce Housing Costs
  • Reduced Development Charges means more attainable housing options for Ottawa residents and faster progress on affordability.
  • Development Charges add tens of thousands of dollars to the price of a new home, and in Ottawa have gone up 30% in the past two years and doubled in the past ten years.
  • If the City fulfills their commitment to review the collection of development charges quickly and lowers charges, the cost of building and buying new homes would reduce.
  1. Federal Government Steps Up to Support Local Infrastructure
  • Federal investment in local infrastructure will help build new communities faster and help address the housing crisis.
  • Ontario and British Columbia are the only provinces where new homeowners pay all of the cost for new roads, water systems, and other essential infrastructure through development charges.
  • Cities like Ottawa can’t absorb these costs alone, and with Development Charges reduced, the federal government must step up to help cover infrastructure costs.
  1. Expanded Urban Boundary for More Family Homes
  • Ottawa lacks sufficient land for family-oriented homes with yards.
  • While infill development helps, it doesn’t always meet the needs of families seeking ground-oriented housing.
  • Expanding the urban boundary would allow for new subdivisions with single-family and townhouse units, boosting supply and affordability for growing families.

Learn More

GOHBA is ready to work with government, industry, and the community to restore housing affordability by focusing on these three priorities.

If you have questions about our recommendations or want to discuss solutions further, please contact Jason Burggraaf, Executive Director, Greater Ottawa Home Builders’ Association, jason@gohba.ca.

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