WINNIPEG — A Winnipeg housing market analyst warns that growth fees on new homes could cause the cost of resale homes to soar.
A report tabled Thursday at City Hall recommends a growth fee on new developments to pay for infrastructure.
Those fees would only be placed on new developments, which could increase demand for older homes in more established areas, said Peter Squire with the Winnipeg Realtors Association.
RELATED: Potential growth fees in Winnipeg could send spike of homebuyers to bedroom communities
“Those prices will be driven up. And there’s no question about it,” he said.
Higher new home prices could push people looking to move out of older areas to stay put, he continued.
“A lot of them will decide to stay, they will not sell their home and that’ll eventually shrink supply within those sought after Winnipeg neighbourhoods,” said Squire.
The growth fee report recommends a fee of approximately $10 per square foot for new residential homes.
Growth fees would have to be approved by city council before they are implemented.
There is no date set for a vote at City Hall.
City councillors have asked for another report that will look at other growth fee issues like whether or not exemptions will apply to new downtown developments.