TRREB's major new policy report targets development charges, zoning restrictions, and approval timelines — the municipal-level barriers it argues are blocking the next phase of housing supply in Ontario.

Last updated 2026-04-24. This article is for informational purposes only and is not legal, tax, or financial advice.

TRREB drops a policy bombshell: municipalities, not the province, are now the choke point

The Toronto Regional Real Estate Board (TRREB) released a major new housing policy report on April 23, 2026, titled "Removing Roadblocks: Tackling Municipal Barriers to Housing Supply and Affordability in Ontario." The report argues that after years of provincial-level reform, the binding constraint on new housing in Ontario has shifted to the municipal level — specifically development charges, outdated zoning, and slow approval processes (TRREB Market Watch).

"This report is a roadmap for cutting red tape and unlocking new housing supply." — John DiMichele, TRREB CEO

What the report argues

TRREB's central thesis is that the Ontario government has already done much of the heavy provincial-level lifting — the More Homes Built Faster Act, strong-mayor powers, and similar measures. But housing approvals still happen at city hall, and TRREB identifies three persistent municipal-level barriers:

Development charges that have risen faster than inflation. Toronto's development charges are among the highest in North America, adding well over $100,000 in cost to a new unit before a shovel hits the ground. Vaughan's VMC district recently demonstrated what's possible when those charges are cut — fees dropped from $94,466 to $50,193 per unit, contributing to the only GTA submarket where condo prices rose year-over-year.
Zoning that still prohibits the "missing middle." Despite provincial as-of-right rules for up to four units per lot, many municipal bylaws still effectively block fourplexes, townhouses, and small apartment buildings in established neighbourhoods through setback, parking, and lot-coverage rules.
Approval timelines that price out infill. Site-plan approvals in some GTA municipalities now stretch 24–36 months, locking up developer capital and adding carrying costs that get passed to buyers.

Why TRREB is taking this fight on now

Three pressures explain the timing. First, the GTA condo market is in genuine crisis — no new projects launched in Q1, completions are forecast to fall sharply through 2028, and the future supply gap is forming in plain sight. Second, the Bank of Canada has signalled the policy rate will likely stay at 2.25% through much of 2026, so monetary stimulus won't bail the market out. Third, federal-provincial-municipal cost-sharing deals (like the January 2026 Dun House Phase 2 announcement in Toronto's Parkdale, which included $460 million in waived development charges) have shown what's possible when all three levels of government align.

What changes if TRREB gets what it wants

Development charge reform: Either provincial caps or mandated phase-ins that smooth the cost curve for builders.
True as-of-right zoning for missing-middle housing — no setback or parking workarounds that effectively re-block construction.
Statutory approval timelines with deemed-approval clauses if municipalities miss deadlines.
Transparent municipal housing scorecards tied to provincial infrastructure funding.

What this means for buyers, sellers, and the next cycle

Policy reports don't move markets overnight, but they shape the next cycle. If even half of TRREB's recommendations are adopted in the next 12–18 months, the supply gap forming in 2028–2029 could be partially closed by 2030. For buyers today, the immediate implication is that the buyer-friendly conditions of spring 2026 are unlikely to be repeated quickly once the supply pipeline tightens — but the structural shift from a high-cost-to-build environment to a lower-cost one is a multi-year story, not a Q3 catalyst.