Let’s Get more housing built, and it starts with having more permits in hand
Right now, we have a project waiting on a zoning examiner to close a file. The zoning is already approved. They literally just need to close the file.
It's been two weeks. Two weeks of a garden suite project sitting idle because someone won't click a button.
This is the reality of building in Toronto. And it's costing everyone.
The Real Cost of Bureaucratic Drift
We currently have over $1 million worth of projects held up in Toronto's permit system. One home builder. One million dollars. Multiply that by the hundreds of builders in Toronto and it sums up to a staggeringly high number.
Permit delays add between $43,000 and $90,000 to the cost of every new home in Toronto.
Meanwhile, Toronto is on pace for its lowest housing starts in 30 years, with building activity down 44% in the first half of 2025.
The bottleneck is real. And it has a name: the building department.
The Broken Feedback Loop
Here's what happens in a private company: if you don't perform, you get feedback. You improve or you're replaced.
Here's what happens at City Hall: if you work harder, you get more files dumped on your desk. No extra pay. No recognition. Just more work.
We don't blame individual employees. The system punishes efficiency.
And guess what? They're unionized, which makes accountability even harder to enforce.
So people do exactly what you'd expect. They do just enough to not get fired. The incentive structure rewards mediocrity and penalizes speed.
A Simple Solution Nobody Wants to Try
What if Toronto flipped the script? What if the fastest, most thorough permit reviewer became the highest paid person in the department?
Performance-based incentives would create a virtuous cycle. Faster permits mean more construction. More construction means more permit fees. More fees fund the incentive program and departmental improvements.
Everyone wins. The city collects more revenue. Employees earn performance bonuses. More housing gets built.
But here's the critical part: both permit reviewers and building inspectors need to be included. Inspectors would act as a natural check on reviewers, ensuring speed doesn't compromise safety or code compliance.
World Bank research examining 153 studies found that pay for performance had positive effects in 93 cases. The evidence is clear: performance pay works in the public sector when designed properly.
The Real Obstacle
So why hasn't Toronto tried this?
The union. The collective bargaining agreement. If you implement performance incentives for the building department, you'd theoretically have to do it across the entire city.
That's the real resistance. The system protects itself, even when that protection contributes to a housing crisis.
An Open Call to Toronto
This will likely never happen. We know that.
But this is an open call to the City of Toronto and other municipalities: wake up and realize you are part of the housing issue.
Your permit system is not a neutral bureaucracy. It's an active obstacle to solving Toronto's housing shortage.
Every day a file sits on someone's desk, money bleeds from projects. Families wait longer for homes. Investors pull back from development. The housing crisis deepens.
We need more accountability across the board. We need to identify the hungry examiners and inspectors and reward their positive behavior.
The solution exists. The evidence supports it. The only question is whether Toronto has the courage to try something different.
Because right now, the status quo is killing housing. And everyone knows it.
About BVM COntracting
BVM Contracting is a full-service General Contractor or Home Builder located in Toronto. We provide home renovation and building services for major home renovations and custom home builds (full interior renovations, home additions, lot severances, new home construction, and laneway suites). Our goal is to help guide our clients through the process of building their home, from concept to completion.
Further than providing General Contracting and Project Management for major home renovations, we also offer value-added services such as renovation financing, renovation rebate consultations and services, building permit and design services, smart home installation services, and real estate investor services.
To learn more about our offering by visiting our services page.