The Ford government has just quietly released its affordable housing definition that developers must meet to qualify for a fee exemption.
We've been waiting nearly two years for this definition to be released.
I fear the Conservatives do not have a credible or effective plan to build affordable housing for rent or for sale at the scale Ontario needs.
This definition of affordable rent is priced too high for low- and moderate-income households, and no developer is going to build an affordable home and sell it for that little because the sale price won’t even cover their costs. It’s set up to fail.
We are calling for the establishment of a Homes Ontario agency to provide financing, grants, and access to public land to help build hundreds of thousands of affordable and non-market homes.
The definition varies depending on the municipality, and it is based on a percentage of average income, average market rent, or a percentage of the going purchase price in that area, whatever is lowest. The exact definition is provided on this Ontario government website.
The resulting numbers are all over the place. Here’s a snapshot.
In Toronto, the affordable purchase price of a detached home, semi-detached home, rowhouse or condo is $366,500. The affordable rental price for a bachelor is $1036, for a one-bedroom is $1708, and for a two-bedroom is $1992.
In Ajax, the affordable purchase price of a detached home, semi-detached home, rowhouse or condo is $495,800. The affordable rental price for a bachelor is $1036, for a one-bedroom is $1456, and for a two-bedroom is $1809.
In Hamilton, the affordable purchase price of a detached home, semi-detached home, rowhouse or condo is $370,100. The affordable rental price for a bachelor is $1017, for a one-bedroom is $1326, and for a two-bedroom is $1543.
In Sudbury, the affordable purchase price of a detached home, semi-detached home, rowhouse or condo is $366,500. The affordable rental price for a bachelor is $877, for a one-bedroom is $1043, and for a two-bedroom is $1361.
In Niagara Falls, the affordable purchase price of a detached home, semi-detached home, rowhouse or condo is $319,800. The affordable rental price for a bachelor is $732, for a one-bedroom is $1200, and for a two-bedroom is $1317.
I'm interested to hear your take. How do you think this new affordable housing definition will impact the housing market? Please email us at [email protected].