Updated analysis from Canada Mortgage and Housing Corporation (CMHC) shows that reducing or eliminating development charges could increase the number of financially viable housing projects across Canadian cities, with gains of 9-14% in cities with higher development charges.
Building on CMHC’s Development Charges and Fees Survey released in December 2025, the updated dataset now covers 40 municipalities and is paired with new modelling to assess how these charges affect housing project viability, said the federal agency.
Mathieu Laberge
In this latest article, it said the CMHC’s Chief Economist, Mathieu Laberge introduces CMHC’s Housing Development Viability Analyzer and examines how reducing development charges affects project viability across markets, with impacts varying widely between municipalities. 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.
Read the full article on CMHC’s website.
“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,” said Laberge. “Improving affordability will require a broader approach, including improved land-use regulation and increased scale and innovation to boost productivity in the construction industry.”
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Entrepreneur. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 and 2024 as one of the top business journalists in the world by PR News. He was also named by RETHINK to its global list of Top Retail Experts 2024, 2025 and 2026.
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