VAUGHAN, ONT. — A new report prepared for the Residential Construction Council of Ontario (RESCON) aims to better understand the risks and rewards associated with streamlining construction approval processes in Ontario and evaluate the economic and social impacts of reducing delays.
The report, called Impacts of Streamlining Construction Approvals Processes in Ontario: A Socioeconomic Analysis, was prepared by the Canadian Centre for Economic Analysis and bolsters the case for adoption of a harmonized and digitized e-permitting system that would help municipalities speed-up the approval processes for new housing builds, says RESCON.
The report found an additional 33,100 homes could be built in the province above and beyond current baseline trends over the next five years if the development approval processes were reduced by six months.
A RESCON release states the reduction in time could also result in an additional contribution of $4.5 billion to Ontario’s economy annually by 2025 and support 40,500 jobs.
If investment in housing construction was increased by 10 per cent, in addition to the six-month reduction, it would result in 76,200 more units and 105,000 additional annual jobs over five years, along with $11.6 billion in additional GDP annually, the report reads.
Over a 20-year period under the same scenario, the report found it would result in 175,700 more units, 145,600 additional annual jobs by 2040, and $17.2 billion in additional annual GDP in Ontario.
“This report demonstrates the need for a province-wide digital e-permitting system to be used by all municipalities as a means of speeding-up approvals,” says RESCON president Richard Lyall in a statement. “Construction will play a major role in our recovery from the COVID-19 pandemic and adopting a more streamlined system that reduces the development and approval processes will result in significantly more homes being brought to market sooner and provide a substantial boost to the economy.”