Updated analysis from Canada Mortgage and Housing Corporation (CMHC) reveals that reducing or eliminating development charges could increase the number of financially viable housing projects across Canadian cities by 9 to 14 percent, particularly in municipalities with higher fees.
Key Findings from CMHC's Updated Data
Building on the Development Charges and Fees Survey released in December 2025, the updated dataset now covers 40 municipalities and is paired with new modeling to assess how these charges affect housing project viability. CMHC's Chief Economist, Mathieu Laberge, introduced the Housing Development Viability Analyzer, which examines how reducing development charges impacts project viability across markets, with effects varying widely between municipalities.
Trade-offs and Broader Solutions
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. Laberge stated, "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. Improving affordability will require a broader approach, including improved land-use regulation and increased scale and innovation to boost productivity in the construction industry."
Regional Variations
In Metro Vancouver municipalities, development charges have increased by around 10 percent since December 2025, largely due to higher regional charges. Metro Vancouver has announced it is seeking provincial government approval to roll back charges to 2025 levels. Alberta, Ontario, and Quebec report minimal changes.
CMHC's Role and Commitment
For 80 years, CMHC has been the foundation of Canada's housing system, promoting stability and sustainability. Its 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.
