Mississauga City Council recently approved a motion from Mayor Caroyln Parrish to make Mississauga housing more affordable, including with incentives to kick-start development and get more homes built quickly.

The motion details important financial changes to boost the supply of housing – including new rental housing – for Mississauga families.

Among other items, the motion will:

• Temporarily lower municipal residential development charges (DCs) by 50 per cent in the City of Mississauga for all residential construction prior to Nov. 13, 2026. On a new single-family home this equates to a reduction of $28,108 and represents the single-largest reduction of development charges by any municipality in Ontario.
• Temporarily defer the payment of development charges until first occupancy resulting in saving on financing costs.
• Temporarily eliminating development charges on three-bedroom purpose-built rental residential apartment projects, thereby incenting this type of crucial development.

Development charges and other fees – also known as growth charges – provide important funding for municipalities to pay for infrastructure for new homes such new roads, transit and libraries. Other than property taxes or user fees, they are the main source of funding Mississauga currently uses to pay for growth-related infrastructure.

The motion requests that the Region of Peel consider matching the DC incentives adopted by the City. In addition, to spur the creation of Mississauga rental housing, the motion calls on the Region to implement a new multi-residential tax subclass. This new tax subclass would reduce property taxes by up to 35 per cent for new purpose-built rental housing.

• The price of an average home in Mississauga is approximately $1.4 million for a detached home or $600,000 for a condo.
• While development charges in Mississauga make up about 10 per cent of the cost of a new condo – fees, taxes and charges from all levels of government total about 25 per cent of the cost of a new GTA home.
• The City’s current development charge rate for a residential condo is $38,316 per unit. With a 50-per-cent reduction, the charge would be $19,158 per unit.
• Development charges from the Region of Peel, GO Transit and school boards total an additional $59,884 for an apartment (condo) unit.

By cutting these charges, the City says it is aiming to address the housing crisis head-on by getting homebuilding back on track in Mississauga.

As a longer-term solution, the City is calling on the provincial and federal governments to adequately fund growth-related infrastructure for municipalities and provide much needed funding for affordable housing.

“Council took a bold step to help build more homes and make them more affordable for Mississauga residents,” says Parrish. “In a crisis of this magnitude, we must act now. Reducing development charges – and eliminating them for family units in rental developments – will help get shovels in the ground immediately.

“However, to tackle this housing crisis, collective action is crucial. I’m calling other levels of government to come to the table. More development will make our City stronger. We need to ensure more access to housing for every income level – this is critical to a healthy economy, safe communities and a dynamic Mississauga for our residents.”

The Building Industry and Land Development Assocation (BILD) applauds the move.

“The City of Mississauga is walking the walk when it comes to new housing,” says President and CEO Dave Wilkes. “BILD and its members echo (Mississauga’s) call to the Region of Peel to consider matching the actions of the City. We would also like to acknowledge and thank the federal government for its direct financial support of Mississauga’s efforts. We encourage all regions, cities and towns in the GTA to follow the vision and lead of Mississauga.”