In Canada, development fees can meaningfully raise new-home costs, and a national housing agency found cutting them could make some residential projects ~14% more viable.
Toronto and Vancouver showed major upside: eliminating charges could lift viable projects by ~10%, and Toronto alone could cover half its stated supply need.
Calgary's fees ranged from ~$4K for a one-bedroom high-rise to ~$9K for detached homes, well below Vancouver's ~$20K-$33K range for comparable units.
Development fees still fund roads, sewers, administration, and other infrastructure, so the national housing agency's economist said the optimal level is not zero.
Lower fees on family-sized homes could help projects compete in costly Canadian markets, where larger new units often exceed comparable resale homes and challenge families.
