The Coalition Against New-Home Taxes (or CANT) is a group of home builders, led by Matt Young of Republic Developments, who are asking all levels of government in Canada to lower the taxes on new homes. In some cities, these taxes -- which include everything from development charges to HST -- can account for up to 30% of the cost of a new home. This is bad for housing affordability and runs counter to our publicly stated goals. So to drive this point home, the group created a cheeky game called Taxopoly: The Unwinnable Game of Canadian Homeownership. (Credit to Blackjet for the idea and design.) I don't think that the average buyer understands what kind of taxes are being levied on new homes, and so kudos to CANT for being a loud advocate for positive change. To learn more, sign their pledge, and/or email your representative, here's their website.

I had a call with a developer in Paris earlier this week and it was interesting to hear him talk about the new home market over there. It sounded a lot like Toronto. Higher interest rates cooled demand. Individual investors largely disappeared. And now developers are having to rethink their strategies and floor plans (including suite sizes).

But in his view, this isn't necessarily a bad thing. It now means that you actually have to be a reasonably good developer in order to have a chance at succeeding. You have to design thoughtful floor plans and build great housing. It's a return to fundamentals, and I would argue that the same thing is happening here in Toronto.

My other noteworthy takeaway was around social housing. All new developments in the Île-de-France region are subject to inclusionary zoning. I believe the requirement is 30% of the suites. These suites are then purchased by social housing operators, and it is one of the ways that new supply is created in the market.

We talk a lot about IZ on this blog, but what's interesting about this approach is that it becomes a forward sale for the developer. Meaning, it helps to de-risk projects. Before doing anything, you know you've sold 30% of your inventory, and somehow the numbers all work. European social housing math is baffling to me.

I am now wondering if this creates some kind of incentive to keep development costs in check. Because if social housing operators are expected to buy 30% of all new homes, then they too are going to want them to be as cost effective as possible. I'm speculating though; I don't know that this is the case.

If you're a developer or real estate person in Paris, please get in touch. I'd love to learn more about your market and trade notes.

Vancouver just put forward a bold proposal to encourage more social, or non-market housing, across the city. As drafted, new social housing projects up to 6 storeys would be permitted as-of-right in "villages" and social housing between 15-18 storeys would be permitted as-of-right in "neighborhood centers." This is a big deal. I mean, look at the above map. Between these two area designations, big chunks of the city would receive these new permissions. For more information on the proposal, check out this short video.