The land development Ontario landscape is shifting rapidly in 2025, as new policies, legislation, and infrastructure planning reshape how and where housing is built. From Bill 17’s sweeping planning reforms to targeted federal-provincial funding initiatives, these changes are unlocking both opportunity and constraint for developers, planners, and homebuyers alike. Here’s what you need to know.

1. Bill 17: Ontario’s “Build Faster and Smarter” Act

Bill 17, officially the Protect Ontario by Building Faster and Smarter Act, is the centerpiece of Ontario’s 2025 housing acceleration strategy. The bill reduces development charges, limits municipal delays, and streamlines approvals, giving the province more control over how housing is permitted and zoned. [1]

• DC deferrals: Development charges can now be deferred until occupancy without accruing interest. [2]
• Uniform application rules: Municipalities need provincial permission to change “complete application” requirements.
• 5% inclusionary zoning cap: For projects near major transit hubs, affordable housing requirements are limited to 5% of units for 25 years. [3]

2. Infrastructure & Servicing Bottlenecks

Servicing (roads, water, sewer) remains a limiting factor for many development projects. The Ontario government is now allowing municipalities to prioritize stalled developments by unlocking servicing capacity in key areas. [4]

• Transit-led growth: Infrastructure investments are being steered toward transit-adjacent sites for higher ROI.
• Federal backing: Build Canada Homes funding ties infrastructure grants to new housing output. [5]

3. Zoning Reforms & Development Rights

Land use planning is seeing sweeping reform. Municipal powers over zoning, green standards, and density restrictions are being curtailed in favor of provincial targets. [6]

• Transit corridors: Density is being mandated in transit-rich zones under a broader TOD strategy.
• Green building limits: Municipalities cannot require standards above the provincial Building Code.

4. What This Means for Builders and Buyers

With lower fees, faster timelines, and a push for mid-density housing, land development is becoming more attractive to builders. At the same time, municipal resistance and servicing gaps create delays. Expect to see:

• More townhomes and multiplexes in urban cores
• Faster approvals in transit-supported areas
• Pushback from local councils over planning powers

Sources:

1. Bill 17 Overview — Baker Lawyers
2. Ontario Introduces Bill 17 — BLG
3. Bill 17 Breakdown — Urbanize Toronto
4. Municipal Tools — Ontario.ca
5. Build Canada Homes — AMO
6. Green Standards Impact — Lexology

Sanjeevan

CTMO

Sanjeevan Premkumar is the Chief Technology & Marketing Officer at Bridge, specializing in digital strategy and real estate market research. He combines technical insight with a deep understanding of the property sector.

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