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Land Development & Housing

Why Ontario’s Land Development Process Slows Housing Growth

Ontario’s land development process is complex, inconsistent, and expensive. Learn why zoning approvals, municipal differences, and planning delays are slowing housing growth and discouraging small-scale developers.

4 minutes read
Why Ontario’s Land Development Process Slows Housing Growth

Why Ontario’s Land Development Process Needs More Clarity

One of the single largest complications in Ontario when it comes to land development is the issue of land use.

Land use can mean many different things.

For example, a business trying to operate inside a city needs to find a location where the zoning actually allows that business to operate.

Many small businesses enter the process unaware that there can be a major hurdle before they ever get to a fit-out permit or begin creating the space where they’ll work.

The Biggest Problem: Lack of Continuity

One of the biggest issues in Ontario is that there’s no real continuity in the planning process.

There are checks and balances through:

  • Provincial planning oversight
  • Provincial planning statements
  • Municipal bylaws
  • Official plans
  • Engineering and development manuals

The overall process may appear similar, but it varies dramatically between municipalities and even counties.

In some cases, multiple municipalities are grouped under one umbrella, creating partial consistency while still maintaining completely unique zoning bylaws.

There is a tremendous amount of nuance in this process.

Why Standardization Is Difficult

Politicians often say we need to streamline development approvals and get more shovels in the ground faster.

The common idea is:

“Create one single system where everyone operates the same way.”

While that sounds great in theory, it’s something that will likely never happen in Ontario or Canada.

There was already a push toward a national building code because building codes differ across Canada.

The national building code creates some standardization, but it’s still an incredibly complicated document written heavily in legal language.

In fact, many engineering firms employ specialists whose entire job is interpreting building codes and challenging how certain sections are written.

That alone has become its own profession.

The Real Solution

When you look at land development and land use, there are countless documents that need to be followed before anything can happen.

Directives are handed down from the province to municipalities, reviewed annually, amended over time, and adjusted based on political priorities and changing development goals.

Because of this, a fully standardized system is unlikely to ever exist.

What’s more important is creating:

  • A better understanding of municipal differences
  • Faster review processes
  • Clearer early-stage answers
  • Better visibility into risk and approvals

That’s what ultimately saves both time and money.

The Cost of Delays

There are conversations in land development that can drag on for months before any real progress is made.

Some municipalities in Ontario have a four-step review process before an application is even submitted for things like:

  • Zoning bylaw amendments
  • Official plan amendments
  • Land use changes

That process alone can take:

  • 4 to 6 months
  • $35,000 to $70,000

And that’s simply to get a “yes” on zoning feasibility.

This is a massive issue when it comes to:

  • Affordability
  • Productivity
  • Housing development in Ontario and Canada

Why Early Clarity Matters

There needs to be far more focus on clarifying the early stages of development.

It can’t only be the “big five” or “big ten” developers handling:

  • Subdivisions
  • Medium-density housing
  • High-density housing
  • Commercial and industrial projects

Right now, a very small group of developers controls much of the development pipeline simply because of how expensive and time-consuming the process has become.

Canada’s Housing Crisis Needs More Developers

Canada is currently facing a housing crisis, especially in Ontario.

There’s a major push to create more housing, but creating more housing requires more people actively building it.

There’s an enormous opportunity for:

  • Small-scale developers
  • Rental property owners
  • Entry-level developers
  • Investors with access to capital

Many of these people could transition into missing middle housing, including:

  • Semi-detached homes
  • Duplexes
  • Triplexes
  • Six-unit conversions

Municipalities are slowly simplifying these types of projects because they’re considered an easy way to increase housing supply.

The Problem Isn’t Opportunity — It’s Process

The issue is that the process still isn’t truly simple.

The people who could afford to build these projects are often scared away because of:

  • Long timelines
  • Unclear approvals
  • High upfront costs
  • Municipal complexity

That’s what needs to be simplified.

That’s what needs to move faster.

And that’s where clearer development intelligence and streamlined planning processes can create more opportunity for everyone.

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