How does the economy benefit from new housing?

Housing development is a key driver of the GTA’s economy providing hundreds of thousands of jobs and the secondary economic and social spin off benefits.

The building and land development industry builds approximately 40,000 homes per year, pays more than $7 billion in wages and salaries and employs 120,000 people. The renovation and custom home sector has a $9 billion payroll and employs an additional 150,000 people. These well paying jobs in turn support thousands of additional jobs and small businesses across the GTA through the products and services required to support them each and every day (e.g. groceries, entertainment, insurance, banking, clothing, furniture, etc.).

Our industry also contributes billions of dollars in revenue to municipalities in the GTA for transit and infrastructure. For example, new housing development contributed $333 million in Section 37 benefits and $315 million in development charges to the City of Toronto in 2017 alone. New housing also made a significant contribution to the $800 million in revenue from Toronto’s Land Transfer Tax.

Then there are the provincial and federal taxes. New development contributes to HST and the Provincial Land Transfer Tax. This money is reinvested back into public services.

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