Government Charges Account for Almost a Quarter of the Price of a New Home in the Greater Toronto Area
GREATER TORONTO, April 30, 2018 /CNW/ - The impact of all government fees, taxes and charges on the wallets of new home buyers in the Greater Toronto Area has increased significantly, according to a new report conducted by the Altus Group for the Building Industry and Land Development Association (BILD).
The report shows these costs add $186,000 to the price of an average new single family home and $121,000 to the cost of an average high-rise apartment in the GTA.
"Some of these costs, such as development charges, are increasing far faster than the rate of inflation, squeezing prospective new home buyers out of the market," said Dave Wilkes, President and CEO of BILD.
Development charges are levied by municipalities on new development to offset capital costs related to the increased need for services such as water, roads, sewers, and emergency services.
The building and land development industry supports the need for new home buyers to pay their fair share of these costs. However, the report shows that these charges have increased across the GTA between 236 per cent and 878 per cent since 2004, far outstripping inflation and the average wage increases over the same period.
"Combined, development charges and HST make up nearly 80 per cent of all government fees applied to new homes. With affordability being a significant concern in GTA markets, these types of increases are not sustainable," added Wilkes.
In order to keep the dream of home ownership a reality in the GTA all levels of government must consider the role that taxes and fees contribute to the cost of a new home.
The Government Charges and Fees on New Homes in the Greater Toronto Area report is a follow up to a similar report released by BILD in 2013 and is available here.
With 1,500 members, BILD is the voice of the home building, land development and professional renovation industry in the Greater Toronto Area. BILD is proudly affiliated with the Ontario and Canadian Home Builders' Associations.
SOURCE Building Industry and Land Development Association
or to schedule an interview, contact John Provenzano, BILD Communications and Marketing Manager at [email protected], (416) 617-7994
Share this article