Your Vote, Your Housing Market: Why Ontario's October 26 Municipal Election Matters More Than the Next Rate Decision
You have spent the past two years watching interest rates.
You have followed Bank of Canada announcements, mortgage renewals and monthly payment calculations. Those factors matter. The Bank of Canada held its policy rate at 2.25% on September 2, 2026, with its next scheduled decision on October 28.
But a bigger, quieter lever for your community’s long-term housing market will be decided two days earlier.
Ontario’s municipal election takes place on Monday, October 26, 2026.
Your mayor and council do not control interest rates, mortgage financing costs or construction prices. They do control many of the local rules, fees and approval processes that determine whether housing gets built, where it goes and how quickly it reaches the market.
That makes this election a housing-policy decision worth your attention.
It is not a question of supporting a particular candidate, party or slate. It is about understanding the practical choices on the ballot and asking clear questions of whoever is running.
What Is Actually on the Municipal Ballot?
Municipal government can feel distant from your housing decisions. In practice, local policy can affect the supply of homes, the cost of new construction and the range of properties available in your community.
Development charges
Development charges are fees applied to new development to help fund infrastructure and services needed for growth.
They can support roads, transit, water, wastewater and other public infrastructure. At the same time, higher charges increase the cost of delivering each new home. Those costs can affect whether a project proceeds, changes its design, stalls or is cancelled.
The question for candidates is straightforward.
Are local taxes, fees and charges helping support housing delivery, or are they making the shortage more difficult to address?
Approval timelines and process variability
A housing project may require multiple planning, zoning, engineering and building approvals before construction can begin.
TRREB has identified approval processes that can take years as a barrier to housing supply. Requirements can also vary significantly from one municipality to another. That creates uncertainty for builders, investors, renters and future homeowners.
Greater standardization, firm timelines, modern technology and stronger accountability can make the process clearer.
For you, faster and more predictable approvals do not guarantee lower prices. They do provide better visibility into when new housing may actually reach the market.
Zoning and missing-middle housing
Restrictive zoning can limit what may be built in established neighbourhoods.
In some areas, a residential lot may permit only one detached home even when the neighbourhood has access to transit, schools, shops and other services. TRREB has called for municipalities to allow up to four units as-of-right on urban residential lots, including duplexes, triplexes, fourplexes, townhomes, laneway suites and small apartment buildings where appropriate.
“Missing middle” housing can create more choices between a detached home and a large apartment building.
The local question is not simply whether more housing is needed. It is where additional homes can fit responsibly, what infrastructure is required and how the rules can support a wider range of housing types.
Parking minimums
Mandatory parking minimums can increase construction costs and consume land, particularly near transit.
A project may need to build more parking spaces than future residents actually require. That can reduce the number of homes on a site or make a project more expensive to deliver.
TRREB has called for unnecessary parking minimums to be eliminated, particularly in areas served by transit.
Municipal taxation
Municipal taxation also affects the cost of owning a home and developing new housing.
This includes property taxes, development-related charges and other local fees. In Toronto, the Municipal Land Transfer Tax is an additional cost paid by buyers. TRREB has called for Toronto to consider reducing its Municipal Land Transfer Tax rather than expanding it, and has urged candidates to reject new municipal land transfer taxes on homebuyers.
These are not abstract policy details. They influence the total cost of buying, building, renting and selling property.
The Numbers Behind the Argument
The housing supply challenge is measurable.
According to figures highlighted by the Toronto Regional Real Estate Board, Ontario recorded roughly 304,000 housing starts between 2022 and 2025. That was barely half of what was needed to remain on pace with the government’s housing target.
In 2025 alone, housing starts fell to just over 62,000.
Those numbers do not tell you what a specific property will be worth. They do show why local decisions about fees, zoning and approvals matter. If fewer homes move from planning to construction, future buyers and renters have fewer choices.
The public is paying attention.
Research commissioned by TRREB and conducted by Ipsos found that among GTA and Simcoe residents:
- 85% are concerned about housing affordability.
- 82% believe municipalities are not doing enough to address it.
- Nine in ten say they are considering voting in the upcoming municipal election.
- 60% are more likely to support candidates focused on housing.
You can review the TRREB-commissioned Ipsos research for the full details.
The message is clear without being partisan. Housing is a central local concern, and voters want to understand what municipal leaders can realistically do.
What This Means in Peel
Peel provides a practical example of how municipal and regional policy can affect housing delivery.
Brampton council voted to cut development charges on new housing by 30%. Separately, Peel Region operates a Development Charge Deferral and Grant Program. The program provides a 50% grant-in-lieu of charges for eligible developments and 100% for eligible purpose-built rental developments.
The current Peel development charge rate schedule runs from August 1, 2026, to January 31, 2027.
These policies have specific eligibility rules, timing requirements and administrative conditions. They should not be treated as automatic savings for every project. Builders and investors need to confirm the applicable municipal and regional requirements before relying on any incentive.
The broader point is important.
Development charge decisions are made by the councils and regional government that residents are electing. Those decisions feed directly into a project’s financial feasibility. Depending on the policy and the project, charges can influence whether construction proceeds, stalls or is cancelled.
Local budgets also form part of the housing environment.
Brampton’s 2026 budget approved 0% for core municipal services, along with an additional 1% levy for the Peel Memorial hospital project. Caledon’s 2026 budget approved a 3.27% total increase, made up of a 2.27% operating increase and a 1% infrastructure levy. Peel Region approved a 4.20% overall property tax increase.
These figures are context, not a prediction about property values. They show why you should look beyond a single headline. Housing policy includes the combined effect of approvals, charges, infrastructure planning and taxation.
What This Means in Muskoka and Parry Sound
In Muskoka and Parry Sound, the same municipal levers appear in a different form.
For rural, waterfront and cottage properties, you may need to consider:
- Official plan policies.
- Severance and consent applications.
- Shoreline and setback rules.
- Septic approvals and permit authority.
- Private road and access standards.
- Building permit timelines.
- The servicing and environmental constraints affecting a particular property.
Official plan reviews and planning authority decisions in local townships can affect what you are able to build, sever, renovate or add to a property.
That makes municipal policy especially important when you are evaluating a waterfront lot, rural home, cottage rental or potential severance. A property’s current use does not always tell you what may be possible in the future.
Before you make an offer, confirm the planning context with the appropriate municipality and qualified professionals.
Five Questions to Ask Any Candidate
These are practical questions you can ask whoever is running in your municipality. They do not tell you how to vote. They help you understand each candidate’s approach to housing delivery.
1. Will you reduce the fees and charges on housing, or add to them?
Ask candidates to explain how development charges, planning fees and other costs would affect new ownership, rental and missing-middle housing.
2. What is your target for approval timelines, and how will you be held accountable?
Ask whether the candidate supports firm timelines, standardized processes, online tracking and public reporting when applications are delayed.
3. Do you support allowing more units as-of-right on residential lots, and where?
Ask where duplexes, triplexes, fourplexes, townhomes, laneway suites and small apartment buildings could fit, and what infrastructure would support them.
4. Will you remove unnecessary parking minimums near transit?
Ask whether parking requirements reflect actual local needs and transit access, or whether they add cost and consume land that could support more homes.
5. Will you reject new taxes on homebuyers?
Ask candidates to explain their position on new municipal land transfer taxes and other transaction costs that increase the amount buyers must bring to closing.
For Sellers and Buyers
If you are selling
The housing decisions made now shape the market you may sell into several years from today.
Local rules can influence how much new competition enters a neighbourhood, which housing types are added and how quickly new projects are completed. That does not allow anyone to predict your future sale price. It does mean that municipal policy direction belongs in your long-term planning.
A strong marketing plan still matters. So does understanding local development activity, official plans and the surrounding supply pipeline.
If you are buying
Approval timelines and development charge policies affect what actually reaches the market and when.
This context can help you compare new construction with resale housing. A new project may offer modern features and a long completion timeline. A resale property may provide immediate possession but require renovations or updates.
The current market remains a good market for buyers and sellers who make informed decisions. The right choice depends on your timeline, financing, property needs and tolerance for uncertainty.
Rate decisions affect financing costs. Municipal decisions affect the local framework around supply. In that sense, the fixed local rules and the variable interest-rate environment are connected, but they are not the same conversation.
The Quiet Decision With Long-Term Effects
The October 28 rate decision may affect monthly payments and borrowing conditions.
The October 26 municipal election affects the rules that decide whether homes get built at all.
Both matter. The municipal decision is quieter, but its effects can last much longer through zoning, infrastructure planning, development charges, approval processes and taxation.
National mortgage arrears remained historically low at approximately 0.28% through July 2026, providing additional context for a market that continues to function rather than a distress-driven environment. Still, your personal property decision should be based on your own finances and professional advice.
AP Bains, REALTOR®, works with buyers and sellers across Peel and cottage country. If you want to understand how local policy, planning decisions and market conditions may fit into your property plans, contact AP Bains.
To estimate your home’s current value, visit the home valuation page. To begin your search, use the buyer property search.
AP Bains | CENTURY 21 Green Realty Inc. Brokerage
416-817-8110
info@apbains.com
www.apbains.com
This article is provided for general information only. It is not voting advice, legal advice, tax advice or financial advice. Municipal policies, eligibility requirements and planning rules can change. Confirm details with the relevant municipality, qualified professionals and official sources before making a decision.