OREA survey finds growing concern over housing costs and government fees

A new survey commissioned by the Ontario Real Estate Association (OREA) suggests many Ontarians no longer see housing affordability as driven solely by market demand.

The polling, conducted by Abacus Data, found that residents increasingly believe government policies and fees also play a role in rising housing costs. More than six in 10 Ontarians, or 62 per cent, said property taxes and government fees have at least a moderate impact on their ability to afford housing in their community.

The findings come from Housing Affordability in Ontario: Perceptions, Impacts, and Solutions, based on a survey conducted in January of 2,000 Ontarians aged 18 and older.

Bracing for worsening affordability

While perceptions that buying a home has become more difficult have eased slightly, a clear majority (61 per cent) still say conditions worsened over the past year, particularly among younger adults and renters, according to the survey.

Expectations for relief remain extremely low, as just 12 per cent believe housing will be more affordable in five years, while nearly half expect affordability to deteriorate further.

Development charges raise concerns

Respondants were asked about their attitudes toward municipal development charges, which municipalities use to help fund infrastructure needed to support population growth.

Many respondents said they understand the principle behind the charges, but concerns remain about how they affect affordability. Two in five respondents said it is unfair to pass development charge costs onto homebuyers, and many (71 per cent) said the fees make housing less affordable.

While Ontarians appear to accept the logic of using development charges to pay for infrastructure, the survey suggests many are uneasy about how the system works in practice.

Calls for greater transparency

Respondents also expressed concerns about how municipalities manage development charge revenue.

Only 26 per cent said they are confident the funds are used appropriately, while 22 per cent said municipalities are transparent about how the money is spent. Seven in 10 respondents said they are concerned that some municipalities have accumulated large surpluses of unspent development charge revenue.

“It’s clear that Ontarians want their municipal leaders to be transparent and accountable when it comes to collecting and managing the fees that enable infrastructure and growth for much-needed homes across the province,” said OREA president-elect Kim Fairley.

Fairley said that to improve oversight of costs that affect housing prices, municipalities should publish reports detailing how development charge funds are used and allow unspent revenue to help offset other government-imposed costs such as property taxes.

Housing remains a top provincial issue

Housing affordability and the rising cost of living continue to rank among the top issues Ontarians want the provincial government to address.

According to the survey, 83 per cent of respondents identified the cost of living as a major priority, while 73 per cent cited housing affordability. Nearly four in five Ontarians, or 79 per cent, said the provincial government should make housing affordability a priority.

Concern about housing appears widespread across age groups and political affiliations. Overall, 86 per cent of respondents said they are worried about housing conditions in Ontario today.

Homeownership still a goal for many

Despite affordability challenges, the desire to own a home remains strong.

More than two-thirds of non-homeowners, or 68 per cent, said they would like to become homeowners one day. Interest is even higher among younger adults, with 88 per cent of respondents aged 18 to 29 saying they hope to own a home in the future.

“The dream of homeownership is still alive for young Ontarians and their families, but they need help to get there,” Fairley said.

She added that governments need to adopt policies that lower the cost of building homes and speed up the delivery of new housing supply to bring affordability within reach.