Trimming development fees would make dozens of housing projects across the country more economically viable in a time when Canada looks to seriously boost construction, says the nation’s housing agency.

Development charges, which municipalities levy on housing developers to pay for the new infrastructure such as roads, water and transit needed for these projects, are especially popular in Ontario and British Columbia and can vary greatly.

For example, a two-bedroom apartment in Ottawa commands development charges of $39,600 while Markham takes $121,500, according to data from Canada Mortgage and Housing Corp. (CMHC).

Given that the average new build was 55 units in Ottawa in 2024 and 246 units in Markham, a developer could be on the hook for $2.2 million and $29.9 million, respectively, in upfront fees for a build.

As a result, developers face a real hurdle in getting their projects off the ground.

But cutting the charges in half would boost the number of viable projects by about five per cent in Toronto and Vancouver, according to CMHC. An all-out cut would boost that figure to about 10 per cent.

“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,” Mathieu Laberge, CMHC’s chief economist, said in a release .

“Improving affordability will require a broader approach, including improved land-use regulation and increased scale and innovation to boost productivity in the construction industry.”

On top of stalling projects, development charges also hurt housing affordability.

CMHC said development charges are passed down to homebuyers and that the price increases are often larger than the development fees themselves. The higher prices on new builds can also drive up prices for existing homes on the market.

High development charges, however, can be a bit of a double-edged sword since they can drive down prices of vacant land and help alleviate property taxes.

CMHC estimates Canada needs to double its annual housing starts to between 430,000 and 480,000 new units by 2035 to meet demand.

As of April, Canada was on pace for 256,777 housing starts in 2026.

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Professional stock pickers are having a hard time gaining an edge as Big Tech strengthens its grip on the stock market.

Only about 20 per cent of stock pickers have outperfromed the S&P 500 this year, according to Strategas Securities, which marks the worst performance since 2021.

IPO debuts of SpaceX, Anthropic PBC and OpenAI are expected to magnify the concentration at the top.

The S&P 500 is up 16 per cent this quarter.

Read more here.

• Today’s Data: Canada and U.S. employment reports for May

• Canada’s new AI plan commits billions for AI adoption, new jobs and skills training
• Garry Marr: The revenge of the defined contribution pension plan
• When it comes to the U.S., the first negotiation is not the one that matters most
• Why adding adult children as joint owners can create more problems than it solves

Opening a joint account with adult children may seem like a simple way to avoid probate fees or the delays of inheritance pay outs, but there are risks.

Ida Khajadourian of Richardson Wealth explains how joint ownership, often intended as a simple estate-planning shortcut, can create serious tax, legal, and family consequences if not structured properly.

Read more here.

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McLister on mortgages

Want to learn more about mortgages? Mortgage strategist Robert McLister’s Financial Post column can help navigate the complex sector, from the latest trends to financing opportunities you won’t want to miss. Plus check his mortgage rate page for Canada’s lowest national mortgage rates, updated daily.

Financial Post on YouTube

Visit the Financial Post’s YouTube channel for interviews with Canada’s leading experts in business, economics, housing, the energy sector and more.

Today’s Posthaste was written by Ben Cousins with additional reporting from Financial Post staff and Bloomberg.

Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? Email us at posthaste@postmedia.com .

• Is the World Cup really a boon for the economy?
• Brace for the coming labour squeeze as 25,500 Canadians retire every month

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Property developer One Living, backed by former Macquarie banker turned investment manager Chris Green’s investment firm, has unveiled plans to bring more institutional capital into housing to help address the national supply crisis.

The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.

It is backing the new One Living business to develop more than 1000 units along the eastern seaboard. The new firm is starting with a development along Sydney’s picturesque Mona Vale Road on Sydney’s Northern Beaches and is eyeing off more sites across the city.

It is operating at the project level – mid-range apartments that listed groups like Stockland and Mirvac rarely take on – and it will have the firepower to build and develop in parts of the market now dominated by private players.

With cost pressures rising in the industry, One Living’s model is to be a vertically integrated developer-builder, so it can respond directly to the housing gap by removing the cost inefficiencies embedded in traditional residential delivery.

“We are building a platform designed to operate at scale and starting in a market where there’s a clear need for quality, attainable housing,” One Living joint managing director Joseph Scuderi said. “It’s that missing middle – it’s that attainable end of housing … that’s what most Australians invest into and what Australians can actually afford.”

GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Mr Green sees a big opportunity in Australia.

“For its size, sophistication and importance to the community, Australia’s living sector has remained largely under-institutionalised, which represents significant opportunity,” Mr Green said. “GreenPoint identified that gap, assembled the right team, and is backing One Living to build a platform that is aligned to market needs.”

Mr Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes. “We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.

The company plans to split its developments evenly between a portion devoted to traditional unit selling, and also keeping hold of stakes in the completed products. “A lot of that will be market led,” Mr Scuderi said.

One Living will undertake a component of affordable housing in its schemes, which it will own and operate, and it could also run build-to-rent on some sites.

Mr Green praised local policy settings. “The NSW government is being very supportive, strategic and pragmatic in terms of how do we generate more supply of housing,” he said. “We think it’s actually positive for development and the bit that’s been lacking at that attainable level is that it’s lots of relatively small private developers, whereas we want to create an institutional platform.”

The company is looking at high-density projects and could take on more institutional funding in future. “The way we will be able to achieve economies of scale is through size,” Mr Green said.

The company is capitalising on what it sees as the structural dis­location in the Australian residential sector and believes the build-to-sell living sector is ripe for institutional capital after the initial focus on build-to-rent.

While it is well-funded, Mr Green said the firm “may bring in incremental capital at some point”.

One Living’s first site is at 6-14 Mona Vale Rd on Sydney’s Northern Beaches, in a deal brokered via JLL.

It is the first site for what it intends to become a major residential force and the company has more sites in due diligence.

The Mona Vale site is targeted to provide more than 140 apartments in one of Sydney’s most supply-constrained markets, where underlying demand has outpaced new supply.

One Living’s management brings a collective 100-plus years of experience across residential development, construction, and institutional capital.

Mr Scuderi held senior positions at Mirvac and Landmark Group, and Matthew Finnimore, as joint managing director, brings experience from Macquarie Capital, Future Fund and global real estate private equity.

Industry veteran Brett Mason is non-executive chairman. He was formerly chief executive of Built, with 35 years in construction and executive leadership, and Mr Green will be a non-executive director.

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