Residential construction is vital for Ontario’s economy, especially during the COVID-19 recovery. However, the construction approval process in some municipalities can be excessively long, taking more than three years. Efforts have been made to streamline approvals, but delays persist. This analysis examines the impact of reducing these delays and increasing investment in housing.
By speeding up approvals and boosting housing investment, more housing units can be brought to market sooner. This not only helps meet housing demand but also leads to significant benefits in employment, GDP, and tax revenue.
The impact varies across different regions in Ontario. A six-month reduction in delays and a 10% increase in housing investment over five years could result in a 2.1% to 3.9% increase in completed housing units, depending on the region. By 2040, this could lead to a 3.8% to 6.7% increase in completed housing units, again varying by region. These changes would have a positive economic and social impact on the province, supporting its overall growth and recovery.