CMHC study says zoning has major impact on house prices – bayobserver.ca Hamilton, Burlington and GTA
There has been a great amount of anecdotal speculation about the degree to which municipal zoning restrictions drive up house process. Now the central Mortgage and Housing Corporation (CMHC) has provided some hard data to support that contention. CMHC developed an index of the amount of regulation imposed by municipalities with Greater Toronto and Greater Vancouver topping the list at 100 and 98 respectively. The data collected from the 2022 Municipal Land Use and Regulation Survey unearthed a compelling connection between land use regulations and housing affordability, particularly in highly regulated cities. The survey shed further light on the impact of stringent zoning laws, height restrictions and other regulatory measures on the availability and cost of housing.
The Municipal Land Use and Regulation Index captures the degree of land use regulation in each city. Higher values indicate more regulation and smaller values represent less regulation. For ease of interpretation, these values have been normalized relative to the Greater Toronto Area (100). The speed of approving new developments is the most crucial survey factor in understanding differences in housing affordability among various land use regulations.
The right hand column shows the ratio of house prices to income with Toronto house prices, for example at over nine times household income, the rest of Ontario at six times and Alberta and Saskatchewan where house prices are under four times household income.