The Cost of Building and Our Contribution to the City’s Economy
Learn about the cost of building homes and condominiums, how much profit developers actually make on an average project and how our industry and governments are investing in the city by funding important infrastructure, public transit, parks and public spaces, schools and more to build a livable GTA.
How do parks and public spaces benefit from new housing and developments?
Over the last decade, almost all new parks and public spaces in the GTA are a result of new developments. Under Ontario’s Planning Act, and as part of any new development, home builders and developers either contribute a piece of land for parks and public spaces in the community. If land is not available (e.g….
What makes up the cost of a new home or condominium?
The cost of a new home or condominium depends on three main drivers: Price of land. Land values in the GTA for single-family homes have increased by over 300% since 2006.1 Cost of building/construction. This includes labour, materials and design. Government fees and taxes. In GTA, 22% of the cost of a single-family home is…
How does new housing and development support public infrastructure?
Developers and home builders pay several types of fees and taxes in order to develop and build new homes. These fees generate billions of dollars in funding and tax revenue per year for the federal, provincial and municipal governments and are reinvested back into the communities in the GTA. As a part of the development…
How does transit benefit from new development?
Each new unit of housing, whether a new condominium unit or a new home, generates thousands of dollars for transit in the region. When real estate developers and home builders build, they pay fees known as development charges to the local municipalities and regions. It is then up to the local governments to manage them….
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…
How much do land developers and home builders make on an average project?
The profit resulting from land development and housing construction is hard to predict due to the many associated risks and the scale of upfront investment required. In general, profits tend to be lower than most people believe, and can be significantly less than other industries. Due to the variation on type of project, location, scale,…