The Government Is Making Canada's Home-Price Explosion Even Worse
- In Vancouver, new homes cost C$644,000 extra, C.D. Howe says
- Zoning regulations, permit delays contribute to price jumps
Pedestrians walk past condominium buildings in downtown Toronto.
Photographer: Cole Burston/BloombergGovernment housing regulations are a key force behind rising prices for new homes in Canada’s costliest cities, according to policy-research group C.D. Howe Institute.
Zoning rules, delays on permit approvals and municipal development fees all contributed to a steep increase in prices of single-family detached houses across Canada, C.D. Howe said in a report Tuesday. The study focused on eight areas -- including Toronto, Calgary, Vancouver and Ottawa-Gatineau -- where new-home prices are more than 20 percent higher than the cost of construction. In those cities, barriers to homebuilding added an average of C$229,000 ($179,000) to the price of a house from 2007 to 2016, the group said.