Ontario does not have a land scarcity problem. Rather, it has a serviced, approved and buildable land scarcity problem, according to Richard Lyall, president of the Residential Construction Council of Ontario (RESCON). In a recent opinion piece, Lyall argues that decades of public policy choices have made it increasingly difficult, expensive and time-consuming to transform land into housing.
The Myth of Land Scarcity
Lyall quotes Mark Twain: "The trouble with the world is not that people know too little; it's that they know so many things that just aren't so." He applies this to the narrative that Ontario is running out of land, calling it an "alternative fact" that is plain wrong. The real issue is a shortage of serviced, approved and buildable land, created by regulatory costs, approval delays, zoning restrictions and infrastructure financing obligations.
Comparative Costs
Research comparing residential development land costs across Ontario, Alberta, British Columbia, Texas and Colorado shows that serviced buildable housing land in the GTA and GTHA is among the most expensive in North America. Government charges in the GTA add between $144,000 and $195,000 per housing unit, while comparable charges in Alberta are often less than half that amount, and in Texas, a fraction.
Approval Timelines
Ontario's average residential approval timeline is nearly 19 months, with projects in Toronto and Hamilton often taking over two years. In contrast, approvals in Calgary and Edmonton are typically completed within four months. Every month of delay adds financing and carrying costs, reducing the number of projects that proceed.
Consequences for Housing Starts
Despite falling high-density development land values, condominium launches remain at historic lows because lower land prices cannot offset construction costs, development charges, financing expenses and regulatory delays. This affects not only homebuyers but also construction workers and the broader economy.
Comparison with Alberta and Texas
Alberta operates under the same constitutional framework as Ontario but produces more housing relative to population growth with lower land costs due to lower government charges, faster approvals and a responsive planning framework. Texas, with its permissive land-use environment and streamlined approvals, also produces substantially more housing per capita than Ontario.
Need for Policy Change
Lyall emphasizes that environmental protections, growth planning and infrastructure investments should not be abandoned, but policymakers must recognize that housing affordability is tied to supply, which is tied to the regulatory environment. Ontario needs a comprehensive strategy to expand the supply of serviced and zoned land.
"The province possesses ample land. What it lacks is enough land that can be efficiently serviced, approved and transformed into housing at a price families can afford. That must change," Lyall concludes.
