Toronto has faced unprecedented growth in the condominium market over the last decade. Today, prices are unaffordable for many, leading to the proposed inclusionary zoning regulations by the Ministry of Municipal Affairs in December of 2017. The proposed regulations would undoubtedly impact financial aspects of residential real estate development, setting aside a maximum of ten percent of units for affordable ownership. Nevertheless, the adoption of inclusionary zoning in Toronto’s Official Plan and Zoning By-law has the potential to provide affordable home ownership for designated low-income inhabitants. The goal of this document is to analyze the financial impacts of the proposed inclusionary zoning regulations on current land prices and condominium price per square foot assumptions.
Key Words: Inclusionary Zoning, Affordable Housing, Toronto, Residual Land Value