The Canadian Home Builders’ Association (CHBA) recently released its 2024 Municipal Benchmarking Study, confirming that Hamilton is failing to build enough housing, with potentially catastrophic consequences. The city ranks last among 23 Canadian municipalities in approval timelines for new housing developments, a significant decline from its 15th-place ranking in 2020 and 18th in 2022. Excessive red tape, soaring municipal fees and an uncompetitive investment climate have made Hamilton one of the most difficult places to build in Canada, further driving up home prices and limiting supply.

Bureaucratic delays

The study highlights the extent of bureaucratic delays in Hamilton, where an average development application requires 93 separate documents and reports – almost double the national average of 50. Ontario municipalities generally require more documentation than those in other provinces, contributing to costly and time-consuming delays. These inefficiencies, coupled with significant increases in government fees, have made housing development more expensive and challenging. Since 2021, development charges in Hamilton have surged by 87 per cent, and the introduction of new Community Benefits Charges on condominiums and apartments has further increased costs.

The impact of these barriers extends beyond homebuyers and renters. The construction industry, a major driver of Hamilton’s economy, is experiencing a downturn. With fewer housing starts, skilled tradespeople and construction workers are facing declining job opportunities. If this trend continues, Hamilton could see a significant wave of job losses in a sector that has traditionally provided stable, middle-class employment. The inability to efficiently build housing not only limits supply but also weakens Hamilton’s economic foundation at a time when stability is critical, particularly in light of growing economic uncertainty and the ongoing trade war between Canada and the U.S.

Hamilton should be well-positioned for investment due to its proximity to the GTA and its strong industrial history. However, its failure to streamline development processes has driven investors elsewhere. By contrast, cities such as Edmonton, Calgary and London are attracting significant investment by cutting red tape and reducing unnecessary costs. While some Ontario municipalities have taken steps to improve approval timelines and lower fees, Hamilton continues to lag, putting its economic future at risk.

Reform or decline

Addressing these issues requires decisive action. A complete review of Hamilton’s planning and development framework is necessary to remove unnecessary bureaucratic obstacles. The city must reduce approval timelines, reassess its tax and fee structures and implement process efficiencies modeled after best practices from more competitive jurisdictions. Establishing a dedicated housing and development task force could help ensure that these changes are made swiftly and effectively.

The choice is clear: Reform or decline. Without bold change at City Hall, Hamilton will continue to fall behind, losing jobs, investment and residents to cities that offer a more business-friendly environment. Housing affordability is at a breaking point, and the time for meaningful action is now.