Housing is not meeting demand in Peterborough

Housing is not meeting demand in Peterborough. City of Peterborough is not growing as an urban center. Supply is too low.

The price of housing is cheap right now … and will be more expensive tomorrow unless;

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Housing Demand is diminished, … unlikely;

  1. an increasing population due to higher immigration targets is in effect
  2. increasing population will create even more demand for all types of housing
  3. increasing demand for housing will create a need for more skilled labour and jobs
  4. increased skilled labour and jobs will create a solid foundation for the economy

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Housing Supply is increased, … unlikely;

  1. decreasing available development lands to create housing is at an all-time low
  2. existing development approval timelines are at … an all-time high
  3. development approval delays continue to increase due to “NIMBYism”
  4. the ability to finance new housing communities diminishes with increased costs and delays

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Why is the supply of housing not meeting the demand … why is it so difficult to create housing in Peterborough & The Kawarthas?

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The Identity Crisis needs to be resolved, … unlikely;

  1. The provincial growth plan has mandated a 50% population increase by 2051 for Peterborough & The Kawarthas
  2. This can only be achieved through densification, which existing communities oppose

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Regulations need to be reduced, … unlikely;

  1. The Provincial Government provides a minimum standard set of rules and guidelines that each municipality must follow for housing
  2. Every Municipality also creates their own local by-laws to govern their area.
  3. Additionally, Conservation Authorities enforce provincial legislation to ensure that local natural heritage and watersheds are protected.

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Just Increase the # of Workers, … unlikely;

  1. Peterborough & The Kawarthas building and planning departments have not increased staff levels much over the past 30 years.
  2. The number of active registered TARION builders has decreased over the past 30 years, reducing competition.
  3. Thousands of skilled trades workers are close to retirement increasing the shortages of tradespeople in every sector of the housing sector.

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Just Decrease the Development Costs, … unlikely;

  1. In 1992 (30 years ago) the development charge rate for a single-family home was $2,500 per housing unit, as of August 1, 2022 the development charge rate is, on average $50,000 per housing unit, and increases each and every year.
  2. The 20 fold increase in costs over 30 years contributes significantly towards the rising cost of housing in Peterborough & The Kawarthas. 

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Just Decrease the Delays, … unlikely;

  1. Delays stem from both provincial and municipal regulations … however, municipalities if they choose can control housing timelines as they mandate the official plan, zoning by-laws, minor variances and building permits.
  2. There are further opportunities, along with provincial and federal funding available to increase housing. In August the Ontario Home Builders Association released a five point plan to increase housing supply in Ontario if Municipalities embrace the plan.
  3. Bill 109 is taking politics out of housing by allowing the professional planning staff at City Hall to approve site plans as per the municipal Official Plan without redundant council votes, if Municipalities choose to use effectively.
  4. Consultants are now available with the Streamline Development Approval Fund from the province, if Municipalities choose to engage the resources available.

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OK… and what needs to be done?

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Community needs to be involved and take ACTION;

There are tremendous opportunities for Community involvement and improvement to create a vibrant more affordable community in Peterborough & The Kawarthas. Pro-Active community collaboration is needed to recognize the decreased housing supply and increased demand and provide more housing supply for our families and children to be able to afford to live in Peterborough & The Kawarthas when they choose to.

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Peterborough + Kawartha Chamber of Commerce Article: https://www.peterboroughchamber.ca/blog

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Housing not meeting the demand in Peterborough

9/6/2022

Why is the supply of housing not meeting the demand and why is it so difficult to create housing in Peterborough?

Supply & Demand
The high demand and low supply ranked Peterborough the most overvalued housing market in all of Ontario last spring.1 The demand comes from federal immigration and desire to live in our beautiful community. The supply is created by the private sector working with the municipality to create housing options for our community. But the supply is not meeting the demand. The supply has not met the demand for decades in Peterborough.
 
Identity Crisis
Peterborough is the 17th largest urban center in the province, and 32nd largest of 41 census metropolitan areas in the country. 2 However, few residents in Peterborough would view the city as an urban center.  The provincial growth plan has mandated a 50% population increase by 2051 for Peterborough. 3 The increase is to be achieved through densification, which is in the City of Peterborough’s Official Plan. 4 To meet that target 900 new residential units would need to be built every year. That is a far greater number than the city has ever built in the past. In fact, less housing is being built now than 30 years ago in the city.

​What has changed in the past 30 years?

Regulations
In the 1990s there were less provincial regulations for housing to be built. The provincial government provides a standard set of rules and guidelines that each municipality must follow for new housing. Each municipality also creates their own local by-laws. And commenting agencies review all new home applications before approval. For example, conservation authorities enforce provincial legislation to ensure that local natural heritage and watersheds are protected. As new legislation is added, old rules often contradict new rules, creating unnecessary red tape.

Employees
Staffing levels at the City of Peterborough’s building and planning departments have been a longstanding issue. The number of different builders has decreased, reducing competition. Thousands of skilled trades workers are close to retirement and there are shortages of tradespeople.5 There are many opportunities for young people to get into skilled trades, municipal planning, and engineering.

Rising Costs
New housing includes fees to pay for needed infrastructure to go along with growth. Those fees have increased by 880% in the past 20 years in Peterborough, and the municipal infrastructure, like roads, has not kept pace.  Also, the cost of land is now higher than the cost to build a new home.

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Inefficient Municipal Processes
Delays stem from both provincial and municipal regulations. Municipalities control housing timelines through the official plan, zoning by-laws, variances and building permits required for new housing.6 Peterborough is in an excellent position to make big changes with provincial funding from the Steamline Development Approval Fund.7 Bill 109 allows the professional planning staff at City Hall to approve site plans, as per the City’s Official Plan without redundant council votes.8
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​Community
The “as is” approach to housing has seen a decline in units available and lack of growth in Peterborough. There are opportunities for improvement to create a vibrant more affordable community in the City of Peterborough. Everyone needs to agree that we need more housing in Peterborough and also take action to create more housing. Collaboration is needed so our children can afford to live in Peterborough when they grow up.

The 2022 Budget for the City of Peterborough earmarked 0.8% for new construction and subdivision growth and 2% for inflation9. The priorities of the City need to be on growth and planning for the future not bumping along with status quo.

​Endnotes

1.  https://storeys.com/peterborough-ontario-overvalued-housing-market/
2.  https://en.wikipedia.org/wiki/List_of_census_metropolitan_areas_and_agglomerations_in_Canada
3.   https://files.ontario.ca/mmah-place-to-grow-office-consolidation-en-2020-08-28.pdf
4.  https://www.peterborough.ca/en/doing-business/resources/Documents/Official-Plan/2021-10-22-Draft-New-Official-Plan---Tracked-Changes-Version---Accessible.pdf
5.  https://energynow.ca/2021/11/700000-tradespeople-set-to-retire-this-decade-10000-worker-deficit-predicted/
6.  https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3472145
7.  https://pub-peterborough.escribemeetings.com/filestream.ashx?DocumentId=34244
8.  https://www.ola.org/en/legislative-business/bills/parliament-42/session-2/bill-109

9. https://pub-peterborough.escribemeetings.com/filestream.ashx?DocumentId=36148

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