Building a home in Windsor is about to become significantly more expensive. A recent consultant’s report for city council suggests that development charges could increase by more than 150%, sparking concerns about housing affordability and the broader impact on the local real estate market.

What This Means for Homebuyers?

The President of the Windsor-Essex Home Builders’ Association, Brent Klundert, voiced his concerns over the increase, stating: “At a time when everyone is talking about improving housing affordability, these development charges would add $46,000 to the cost of every single-family home in this city.” This sharp increase comes at a time when housing costs are already rising due to supply chain issues, labor shortages, and inflationary pressures.

Who Really Pays for These Increases?

While it may seem like developers and builders will absorb these costs, Windsor Construction Association President Jim Lyons clarifies that the burden ultimately falls on the homebuyer: “I don’t know if they fully understand that we—builders and developers—don’t pay for this. We pass it along. It’s the customer who pays.” Lyons also points out that Windsor’s long history of keeping property taxes low has contributed to infrastructure deficits. Now, municipalities see development charges as an easier way to generate revenue rather than increasing property taxes.

A Staggering 5,000% Increase Since 2000

For perspective, in the year 2000, the development charge for a single-family home in Windsor was just $1,500. With the proposed increases, that fee will have skyrocketed by a staggering 5,000%.

To put this in further context, the Consumer Price Index (CPI)—a measure of inflation—has only risen 68% in that same period. This stark contrast raises questions about whether these increases are reasonable or sustainable.

What’s Next for Windsor’s Housing Market?

As local developer Scott D’Amore explains, these increases often come down to municipal budgeting strategies: “At budget time, development charges are an opportunity to increase revenues for municipalities. It’s easier than raising property taxes because we can see all of those on our bills.”

With housing affordability already a major concern, the question remains: Will these new fees push homeownership further out of reach for Windsor residents?