Windsor is exploring a move that could have a real impact on housing supply in the city. Mayor Drew Dilkens has asked city staff to look into partially or fully waiving development charges for apartment buildings that pull permits in 2026.

At first glance, this might sound like a simple incentive for developers. In reality, it says a lot about where the market is right now.

The Core Issue: Projects Are Approved but Not Moving

There are developers in Windsor who already own land and have zoning approvals in place for apartment buildings. But many of those projects are not moving forward. The reason is straightforward. The numbers do not work.

Between construction costs, financing costs, and development charges, a lot of these deals simply do not make financial sense in today’s environment. This is not unique to Windsor. It is happening across Ontario and across the country. But Windsor is now looking at ways to address it directly.

Why Development Charges Matter

Development charges are fees paid by builders to help fund infrastructure like roads, sewers, water systems, and public services. They are a key part of how municipalities manage growth.

In Windsor, development charges on apartment units are over $20,000 per unit. That is a meaningful cost when you are trying to make a project viable. Remove that cost, and suddenly some of these projects start to make sense again on paper. That is the logic behind this proposal.

It is not about giving developers a break. It is about trying to get more housing built.

The Bigger Picture: Supply Is Slowing

According to Canada Mortgage and Housing Corporation, housing starts are expected to decline as economic uncertainty pushes builders to the sidelines. We are already seeing that play out.

Windsor had just over 1,200 housing starts in 2025, falling short of its provincial target. Even in 2024, when starts were stronger, the environment was very different than it is today. If fewer projects move forward now, it creates a ripple effect. Less construction today means less supply in the future. And that usually shows up as higher rents and tighter availability down the road.

The Tradeoff No One Talks About

There is always a tradeoff with policies like this. Development charges exist for a reason. They help pay for the infrastructure that supports new growth. If those fees are reduced or eliminated, that cost does not disappear. It gets shifted.

The mayor is betting that provincial funding programs will help fill that gap, similar to past funding Windsor has received for hitting housing targets. That may work. But it is not guaranteed.

What This Means for the Market

In the short term, this could help unlock projects that are currently stalled. It might be enough to get a few apartment developments moving that otherwise would not happen. In the long term, it highlights a bigger issue. The economics of building housing are under pressure.

When cities have to consider removing key revenue sources just to make projects viable, it tells you how tight things have become.

Final Thoughts

This is a practical move by the city to try and push supply forward in a difficult environment. It may help. But it is likely just one piece of a much larger puzzle. If the goal is to meaningfully increase housing supply, it will take more than one policy change. It will take a combination of lower costs, better financing conditions, and continued demand.

For now, this is a signal worth paying attention to. It shows where the pressure points are in the market and where municipalities are trying to step in.

If you found this breakdown helpful, share it with someone who is trying to understand what is really happening in the Windsor housing market. These are the types of shifts that shape where prices, rents, and opportunities go next.

And if you want more insights like this on local development and real estate trends in Windsor-Essex, make sure you are following along or reach out anytime.