Rethinking MDCs: A Step Toward Affordable Housing in Ontario

Municipal Development Charges (MDCs) are a hidden yet significant cost for new homebuyers in Ontario. According to the OREA Ontario Housing-Outlook Tracking Report, these fees can account for up to 20% of a new home’s price—a staggering amount for anyone striving to achieve homeownership.

But here’s the surprising part: Only 10% of Ontarians are even aware of MDCs and their impact on housing affordability. It’s time to shed light on these charges and discuss how rethinking them could make homeownership more attainable for families across Ontario.

What Are Municipal Development Charges (MDCs)?

MDCs are fees collected by municipalities to fund infrastructure and services such as roads, parks, and community facilities for new developments. While they serve an essential purpose, their current rates are raising concerns about affordability.

What Ontarians Are Saying:

• 68% believe MDCs contribute to unaffordable housing.
• 82% think MDCs should make up less than 5% of a new home’s cost.
• 75% support cities reducing MDCs to boost affordability.
• 72% back provincial limits on these fees.

Why This Matters

The rising cost of housing is one of the most pressing challenges in Ontario. By rethinking MDCs, we can create a more balanced approach that funds municipal needs without pricing families out of the housing market.

The Path Forward

With strong public support for change, municipalities and the provincial government have an opportunity to review and adjust MDC policies. The goal? To strike a balance that supports growth while fostering affordability.

💡 Let’s rethink MDCs to make homeownership a reality for more Ontarians.