Ontario’s Bill 98 and Markham — What the New Housing Legislation Actually Means

On March 30, 2026, Ontario’s provincial government announced a series of watershed changes intended to revitalize the housing market — most notably significant reductions to development charges, the introduction of HST rebates for eligible buyers of new homes, and the simplification of official plans. These changes were proposed through Bill 98, the Building Homes and Improving Transportation Infrastructure Act.

Bill 98 represents a further step in the ongoing effort to centralize and standardize land use planning rules, reduce development costs, and accelerate housing delivery across Ontario. Michael John Lau, a top real estate agent in Markham Ontario, has been reading the legislation and the legal analysis. Here is what Bill 98 actually means — in plain language — for Markham.

The Key Provisions That Affect Markham Real Estate

Development Charge Reductions

To access federal funding through the Build Communities Strong Fund, provinces agreed to cost-match federal funding and substantially reduce development charges. DCs in Markham increased nearly 30% between 2020 and 2024, adding $30,000 to $60,000 per unit to the cost of new homes. Bill 98’s DC reduction framework directly addresses this — making new construction more financially viable and reducing the gap between construction cost and achievable selling price that has killed dozens of GTA housing starts since 2023.

Bill 98 also introduces a new requirement to disclose development charges, taxes, and fees on home purchase and sale agreements — a transparency measure that lets buyers see exactly what government charges are embedded in their price.

Minimum Lot Area Reduction

Bill 98 would remove municipal authority to impose minimum lot area requirements for urban residential land (outside the Greenbelt) that exceed a prescribed area of 175 square metres (about 1,884 sq ft). This is the missing-middle enabler: a lot that small can support a garden suite, laneway house, or modest residential unit. Combined with Markham’s evolving Official Plan allowing up to four units per residential lot, this materially expands the income-generating potential of Markham detached home lots.

Standardized Official Plans

Bill 98 introduces 10 standard chapters, a standardized set of schedules and appendices, and 12 standardized land use designations — the only designations lower- and single-tier municipalities may use. For Markham, future rezoning and development applications are evaluated against a consistent provincial framework rather than the city’s own idiosyncratic designations — making approval faster, cheaper, and more predictable, which translates to more supply and more competitive new home pricing.

DC Exemption for Not-for-Profit Retirement Homes

Bill 98 introduces a DC exemption for not-for-profit retirement homes that provide supportive housing for low-income seniors — directly supporting senior housing expansion in a city where one in five residents will be 65 or older by 2031.

What Bill 98 Means for Each Type of Markham Participant

For new construction buyers: The DC reduction framework makes future Markham projects more affordable — but the current HST rebate window (sign before March 31, 2027) and current active projects are the immediate opportunity. Bill 98’s full cost impact will be felt in projects launching in 2027 and beyond.

For existing homeowners: The minimum lot area reduction and missing-middle framework expand the income and development potential of existing lots. If you own a detached home in Markham Village, Greensborough, or Raymerville on a lot of 6,000 sq ft or more, Bill 98 increases what you can legally build — and therefore its long-term value.

For investors and developers: Combined DC reductions and planning standardization make Markham’s approval process materially more attractive than it has been for years. Projects that could not pencil in 2024–2025 may pencil in 2027, potentially accelerating the supply pipeline rebuild faster than current consensus.

For sellers of existing homes: More future supply is a long-term competitive consideration. Sellers maximizing exit price should weigh their timeline against when new Bill 98-enabled supply begins completing in volume — likely 2028 to 2030. Selling in 2026–2027, before that supply lands, may produce better relative outcomes than waiting.

Michael John Lau, a top real estate agent in Markham Ontario, monitors legislative changes to Ontario’s housing framework as a core part of the market intelligence he provides to clients across all transaction types.

Frequently Asked Questions

What is Ontario's Bill 98?

Bill 98, the Building Homes and Improving Transportation Infrastructure Act, was announced March 30, 2026. It reduces development charges, introduces HST rebates for new home buyers, cuts minimum lot area requirements to 175 square metres, and standardizes municipal official plans.

How does Bill 98 affect existing Markham homeowners?

By cutting minimum lot area requirements to 175 square metres and enabling missing-middle housing, Bill 98 — combined with Markham allowing up to four units per lot — increases what homeowners can legally build, raising the income and development potential of existing lots.

When will Bill 98 lower new home prices in Markham?

The development charge reductions will most affect projects launching in 2027 and beyond. For 2026, the immediate opportunity is the HST rebate of up to $130,000 on purchases signed before March 31, 2027, plus better value on current active projects.

Should I sell my Markham home before Bill 98's new supply arrives?

New supply enabled by Bill 98 will likely begin completing in volume around 2028–2030. Sellers aiming to maximize exit price may achieve better relative outcomes selling in 2026–2027, before that supply lands — though personal circumstances should drive the timing.