Building in Hamilton Just Got Pricier
By Lucas on Jul 23, 2013
Recently, there’s been word of Toronto’s development charges possibly getting increased by a whopping 90%, news that was followed by a mix of reactions. Some think this is the kind of raise we need to keep functioning properly as a city, and some believe it will only hinder our city’s growth by exacerbating the affordability issue.
Well, the development charges in Hamilton went up earlier this month, but it wasn’t exactly a dramatic rise.
Development charges in Hamilton
Before July 6, 2013, the development charges for singles and semis were $27,482 per unit, and now the development charges are $28,095 per unit - a drastic difference of 2.23%.
Development charges for townhomes, apartments, and larger scale residential developments also increases similarily.
An increase of 2.23% doesn’t sound like a lot when compared to Toronto’s proposed 90% hike, but it seems significant considering Burlington raised their development charges by only 0.33% back in April. The only reason this stands out is because the two cities are so close together, both seem to be experiencing rapid growth, and both adjusted their development charges based on Statistics Canada construction price index.
Anyone who was semi-outraged by Hamilton’s slight increase in development charges should keep in mind that Burlington already demands much higher development charges. There are some cases, like if a builder is developing within a Greenfield with Residential Recovery, where they are paying more than $50,000 per single and semi.
Adam Smith comments on the increase of Hamilton’s development charges
Recently, yourhamiltonbiz.com discussed the increase of Hamilton’s development charges with Adam Smith, the Senior Financial Analyst for the City of Hamilton.
Smith said that overall, “Hamilton’s charges are still competitive.” He then pointed out that other municipalities, such as Vaughan and Brampton, are charging anywhere between $50,000 and $60,000 in development charges.
Smith is right. Building in Hamilton is still significantly cheaper than building in a few other nearby municipalities. We believe that Hamilton’s lower charges may attract more attention from builders and developers in the near future, causing a mini boom in their downtown core.
What do you think? Is Hamilton the next hotspot for investors?Feature image from Google Maps
