this post was submitted on 22 Jun 2025
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1/3 of the price of a new home in Canada is taxes, so profits for who exactly?
The answer is existing homeowners, which helps places like Toronto have one of the lowest property taxes in the world despite insane prices.
Explain to me please why existing owners should subsidize the building of city infrastructure in new developments.
I don’t live in Toronto but building new sewers, water systems, roads, community centres etc. shouldn’t be funded by existing taxpayers who still have above ground utility cables and no sidewalks.
Actually its generally new buyers who haven't used or benefited from the infrastructure paying to maintain and replace it. Which is the opposite of how it should be.
We’re in Ottawa, so that may be an exception, but generally here it’s been extraordinarily expensive to develop the suburbs beyond the greenbelt, and until the development fees were increased in the late 90s, studies showed that new homeowners only bore about 1/5th of the cost.
Much of the development classification from farmland was effectively unplanned and forced through by suburban municipal councils before the amalgamation in the 1990s.
The costs of extending utilities across the National Capital Commission lands was extraordinary and no one inside the greenbelt benefited. A major bridge had to be built because the traffic impact was not considered etc.
There have been more recent improvements such as the retroactive construction of separate wastewater and storm water systems in the core that benefit everyone by keeping sewage out of the rivers.
The O-train construction unfortunately has been a burden on all without the benefits that should come with a modern rapid transit system.