Introduction: Setting the Stage
Burlington, Ontario, finds itself at a pivotal moment, and the city's 2025 budget is a key indicator of how it plans to handle its growth and development. This isn't just about numbers; it’s about the real estate landscape and how the city manages its future. Understanding this budget is essential for homeowners, potential buyers, and investors in Burlington's residential real estate market. This document sets the stage for the changes coming to the city and should be reviewed by all parties.
Burlington is not static; it's an evolving community facing significant growth. The city anticipates a population increase of over 40% in the next 25 years. This substantial change requires a delicate balancing act: supporting growth while ensuring the existing community benefits from city services. Burlington needs to provide more housing options, but these new options need to align with the character of the city's established neighbourhoods.
- The 2025 budget considers the city’s current needs while also laying the groundwork for future development.
- The city needs to maintain existing infrastructure and also make new investments, while preparing for a larger population.
- Burlington has been engaging the public on how to enable a range of housing options.
- The budget reflects the city’s ongoing efforts to meet its goal that everyone has access to housing options that suit their needs.
This budget is not just a list of expenditures. It’s a strategic plan that directly influences the availability and value of residential real estate, which impacts every homeowner and prospective buyer. It provides a framework for how Burlington grows, and makes certain how it plans to support both current residents and the people who will call it home in the future. The city is working towards a favourable balance of housing options within the city. This means changes to property taxes, development incentives, and infrastructure investments, all of which we will explore in this series.
Property Tax Implications: What Homeowners Need to Know
For homeowners in Burlington, the most immediate impact of the 2025 budget is the increase in property taxes. It’s not just a small adjustment; it’s a significant shift that will affect household budgets across the city. The City of Burlington has approved a 7.51% increase to its portion of the property tax bill. This figure, while specific to the city's share, combines with Halton Region's projected 6% increase for a total blended tax increase of 5.76%. This means you'll be paying more on your taxes.
- For an urban residential property, this increase translates to about $52.91 for every $100,000 of assessed property value.
- This means that if your home is assessed at $800,000, your property taxes will go up approximately $423.28 annually.
What’s important to understand is that these property taxes are not arbitrary; they are a critical piece of the city’s financial structure. Property taxes comprise about 72% of the City’s revenue. This heavy reliance on property taxes means these funds are vital for the municipality to provide services and maintain infrastructure, and this figure is seldom discussed in the real estate industry. So, when you receive your property tax bill, think of it as an investment into the parks, roads, and other services that maintain the desirability of your neighbourhood and the city.
The increase in property taxes is a reality, but the budget is designed to use these funds to strengthen the city’s position for the future. Property tax increases are needed to fund necessary projects in the city. As a homeowner, it’s important to keep informed about how these funds are being allocated, which will be explained in the following sections.
Housing Supply Initiatives: Incentivizing Development
A crucial aspect of Burlington’s 2025 budget is the city's approach to increasing housing options, a necessary step to meet the demands of a growing population. The city is not just building more houses; it is changing the rules to encourage diverse housing types throughout Burlington. This approach includes the implementation of four units as-of-right, incentives for Additional Residential Units (ARUs), and leveraging the Housing Accelerator Fund (HAF).
- The move to allow four units as-of-right on residential lots is a significant policy change. This means that homeowners can build up to four units on their property without needing special zoning permissions, greatly increasing density without requiring city council approvals.
- The city is actively promoting the creation of Additional Residential Units (ARUs) like basement apartments, laneway houses, and garden suites, acknowledging these units as an efficient way to add more housing.
- Burlington's plan encourages a wider range of housing options, not just single-family homes, which can lead to a more balanced and sustainable community.
The city also secured $21 million from the HAF to boost housing supply. This funding isn't just a lump sum; it's a catalyst for innovative projects. The HAF focuses on making it easier to build new rental and affordable housing units, with an emphasis on diverse housing types, like duplexes, townhouses, and low-rise apartments. This type of strategic funding can help Burlington meet its housing targets and create more affordable options for its residents. These initiatives will be essential to watch as they continue to develop in the coming year, and how quickly this new supply will enter the market.
These initiatives signify a shift in Burlington’s approach to development, focusing on a strategic plan that will permit a wider range of housing options than have been historically available.
Official Plan and Zoning Changes: Increasing Housing Density
Burlington is making significant changes to its Official Plan and Zoning Bylaws to actively increase housing options in the city. These aren't minor tweaks; they are substantial shifts that will alter how residential development happens in Burlington. The focus is on increasing the number of Additional Residential Units (ARUs) and rethinking how the city approaches density.
- The city is proposing to increase the number of ARUs permitted on a single property from two to three, in addition to the primary dwelling unit. This change will apply to any land use designation that permits residential uses within the city. This means more opportunities for homeowners to add units like basement apartments or garden suites.
- The amendments aim to remove density as the primary factor when considering new developments in established residential areas. Instead, the focus is shifting to built form and context. This means that new projects will be evaluated based on how they fit within the existing neighbourhood character rather than just the number of units.
- These changes align with the city's goal to support what is called gentle intensification, which is about adding more housing options in a way that is compatible with the existing character of Burlington’s neighbourhoods.
These changes are not just about adding units, but creating the type of housing that meets the needs of all residents. This includes a variety of housing options suitable for different stages of life and income levels. The city is also taking steps to streamline the approvals process, recognizing that quick action can help to alleviate the housing challenges. These policy changes show that the city is working to address housing availability and affordability for all residents. The focus on gentle intensification ensures the city can grow without disrupting the character of its established neighbourhoods.
Housing Accelerator Fund (HAF): Boosting Affordable Housing
The City of Burlington secured $21 million through the Housing Accelerator Fund (HAF), a crucial investment designed to fast-track the creation of more affordable homes. This funding is not just about adding new units, but strategically using incentives to encourage specific types of development that address housing needs in the city. The HAF program is set to run until December 31, 2026, and includes several key components to spur construction.
- The HAF funding will support initiatives like fee waivers for new, eligible Additional Residential Units (ARU) permits for homeowners, and fee waivers for new, eligible affordable rental housing for non-profits, provided they receive their building permit by December 31, 2026. These actions lower the financial barriers for homeowners and not-for-profit organizations, making it more attractive for them to create affordable units.
- The HAF program is designed to support the implementation of the city’s Housing Strategy, with a focus on increasing housing options for residents by cutting red tape and implementing updated zoning.
- The City will use the HAF to implement its action plan, which includes streamlining planning and building approvals, supporting the creation of additional residential units, and identifying opportunities to incentivize the creation of rental and non-market housing.
This funding directly supports the city’s goal to foster complete, low-carbon, and climate-resilient communities that are affordable, inclusive, and equitable. It’s important to note that the HAF requires municipalities to encourage apartment building around public transit, which will help seniors, students, and families. The HAF is a financial incentive as well as an incentive for the City to be innovative in its housing solutions, and this funding will be a crucial part of the city's push for more affordable housing.
Community Improvement Plan (CIP): Financial Incentives for Homeowners and Developers
The City of Burlington is exploring the implementation of a Community Improvement Plan (CIP) to offer financial incentives for housing development. A CIP is a strategic tool that allows the city to provide grants, loans, and tax breaks to property owners and developers. This approach goes beyond simply allowing more units; it aims to actively encourage the specific types of housing that the city needs.
- The CIP is designed to help meet the goals of the city's Housing Accelerator Fund (HAF) action plan and Housing Strategy, focusing on creating new rental and affordable housing options. The plan intends to align with the city’s official plan.
- The CIP could offer incentives to help cover development costs for new affordable housing units, making it more financially attractive for developers to build these types of units. This may include financial incentives, such as grants and tax incentives.
- The city is considering offering incentives to support property owners and housing providers who are building new rental, affordable, and missing middle housing. This includes multi-unit housing that fills the gap between single-family homes and large apartment buildings.
The CIP is a way for the city to actively encourage specific types of housing and to create a favourable environment for development. Public open houses were held in December 2024 to discuss the proposed plan. The city intends to use feedback from these meetings to refine the plan. This highlights how the city is taking a proactive approach to addressing housing needs, by creating strategic incentives rather than simply waiting for the market to solve its challenges. The CIP could be a game-changer for how the city approaches development in the future.
Infrastructure Investments: Enhancing Community Value
The City of Burlington understands that increasing housing density must be accompanied by significant investments in infrastructure. These aren't just routine maintenance projects; they are strategic capital investments designed to improve the quality of life for all residents and, as a result, enhance the desirability and property values in the city. These investments span a variety of sectors, ensuring a well-rounded approach to community development.
- The city plans to improve its parks and recreational facilities, including upgrades to existing facilities and the development of new parks, recognizing that green spaces are essential for a balanced community.
- Transit improvements are a key component, with the goal of increasing the accessibility of the city. This includes plans for more efficient bus routes, and better connections to other transit options. The city has already made some progress towards this goal, including making transit free for adults 65 and older.
- Road improvements and traffic management are also being addressed, with a focus on ensuring the smooth flow of traffic, while maintaining pedestrian and cyclist safety. This includes initiatives like protected bike lanes and pedestrian crossovers.
- The city is investing in stormwater management to protect properties and the environment from damage from excessive water.
These infrastructure projects are not just about maintaining the city's current systems, they are about creating a more attractive, convenient, and sustainable city. By investing in these areas, the city is not only meeting the needs of the present but also enhancing the long-term value of properties throughout Burlington.
Population Growth and Planning: Addressing Future Needs
The City of Burlington is preparing for significant population growth, with projections estimating a 40% increase in residents over the next 25 years. This level of growth requires a proactive and strategic approach to planning and budgeting. The city's strategy involves not just accommodating this growth but also ensuring it contributes positively to the existing community by using gentle intensification.
- The city’s planning strategy focuses on increasing housing options in existing neighbourhoods. This includes supporting the development of “missing middle” housing types, such as garden suites, duplexes, and small apartment buildings.
- The city is implementing Official Plan and zoning bylaw amendments to support a greater range of housing. This involves updating policies to allow for more diverse housing options and to streamline the approval process for new developments.
- The city's 2025 budget is designed to meet the needs of current residents while also preparing for the future. All new investments are considered based on how well they satisfy the principles of affordability, livability, sustainability, and transparency.
- The city is working to ensure that its infrastructure can handle the projected population increase. The city will support the development of complete, low-carbon, and climate-resilient communities.
Burlington is aiming for a balanced approach to growth, by encouraging the creation of more housing options, while making sure that the existing infrastructure and community resources can support this growth. Rather than simply reacting to population increases, Burlington is proactively planning for its future. The City is seeking to ensure that future growth strengthens and benefits the community as a whole, rather than detracting from what makes it a desirable place to live. The city is also encouraging public engagement on these important topics.
Streamlining Development: The Role of AI
The City of Burlington is using artificial intelligence (AI) to speed up the development approval process. This innovative approach aims to enable more homes by reducing the time it takes to get projects approved. By using AI, the city is aiming to streamline the process and overcome bottlenecks that can slow down development.
- Burlington has been recognized for its innovative use of AI in this area, being a finalist in the Gartner Eye of Innovation Awards for Government and also receiving honours from CIO Awards Canada.
- The city has piloted two AI tools. One assesses zoning bylaws for employment buildings, and the other evaluates architectural drawings against the rules of the Ontario Building Code.
- With these tools, building designs can be uploaded, and the AI provides immediate feedback on which aspects meet the rules and bylaws. This reduces the need for multiple revisions, saving both time and money.
- The city plans to expand the use of this technology in 2025, aiming to increase efficiencies in the development approval process.
This approach has already led to reduced time spent on design revisions and improved transparency in the development process. This represents a significant shift in how the city handles development approvals. Instead of relying on traditional, often slower, methods, the city is embracing technology to manage growth more efficiently and increase housing options. This shows a commitment to innovation and to creating a favourable environment for developers who are working to address the city’s housing needs.
Conclusion: Navigating the Future of Burlington Real Estate
The City of Burlington's 2025 budget and its strategic initiatives will have noticeable effects on the city’s residential real estate market. For both homeowners and investors, understanding these impacts is essential for making informed decisions. This budget prioritizes long-term growth and resilience, with a focus on investments that will support the city’s increasing population and improve its appeal.
- The city's commitment to infrastructure improvements will make the city a more desirable place to live, which can positively affect property values. This includes investments in parks, transit, and roads, which increase the overall quality of life for residents.
- The budget allocates key funding for projects that address climate challenges, such as flood relief and green infrastructure. This focus on sustainability not only helps the environment but can also make properties more attractive to potential buyers.
- The city’s strategy of gentle intensification, which involves adding more diverse housing options in existing neighbourhoods, will lead to a broader range of housing types and may result in more housing options becoming available. This can help to ensure the community remains accessible to a wider range of residents.
- The city's use of AI to speed up development approvals can lead to a more efficient and transparent building process, encouraging more housing options and potentially stabilizing the market.
Burlington is proactively managing its growth and creating a more liveable and sustainable community. The city’s forward-thinking approach and long-term investments will be a significant factor in the future of Burlington’s residential real estate market.
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This blog post has utilized information and resources available on the City of Burlington's official website (www.burlington.ca) to provide accurate and up-to-date details regarding development projects, planning processes, and policies.
