Why Markham’s $121,500 Development Charge Is Adding Thousands to Your Condo Price — And What You Can Do About It

When you purchase a pre-construction condo in Markham, you are not just buying a unit. You are paying a portion of the cost to build the roads, sewers, parks, community centres, and transit infrastructure that will serve your neighbourhood for the next fifty years. Development charges are how municipalities collect that contribution from builders — and Markham’s are among the highest in Canada.

Michael John Lau, Markham’s top REALTOR® and CPA/CMA, reviews development charge clauses in every pre-construction purchase agreement his clients sign. Here is why this number matters — and what buyers can do about it.

What Development Charges Actually Are

Development charges (DCs) are fees paid by builders to the City of Markham, York Region, and the province when a new residential building permit is issued. They fund capital infrastructure — roads, water and wastewater, parks, libraries, community centres, fire halls, and transit. In theory, DCs ensure growth pays for growth. In practice, builders pass them directly to buyers in the purchase price. You do not pay the DC separately — it is embedded in your price. But it is real, and it is significant.

The Numbers in Markham

A developer in Markham would pay around $29.9 million in development charges on a typical project, compared to roughly $2.2 million in Ottawa. On a per-unit basis for a condo apartment, the combined City of Markham, York Region, and education DCs in 2026 total approximately $121,500 per unit — one of the highest per-unit DC burdens in Canada.

TRREB noted in its March 2026 submission to York Region Council that DCs add substantial costs to new home prices — often tens of thousands per unit — passed on to buyers or renters, and that targeted reductions would enable more competitive pricing and boost construction activity.

How DCs Show Up in Your Purchase Agreement

In older Markham agreements, DCs were payable by the builder at building permit issuance and incorporated into the unit price. In newer agreements following Bill 17 (Protect Ontario by Building Faster and Smarter Act, 2025), all residential high-rise DCs are deferred to each occupancy permit — letting developers pay when the unit is occupied rather than at permit issuance. This deferral does not reduce the DC amount; it changes when the developer pays. The cost is still embedded in your price.

What 2026’s Legislation Is Doing to Change This

Ontario’s Bill 98 proposed significant DC reductions in partnership with the federal Build Communities Strong Fund, and York Region’s 2026 DC Bylaw update reduced Region-wide residential rates between 2% and 9%. These are steps in the right direction but not transformative — a 9% reduction on a $68,000 York Region DC saves about $6,120 per unit. TRREB concluded the 2026 adjustments do not go far enough to address affordability meaningfully.

What Buyers Can Do

• Prioritize projects with capped development charges. UnionCity’s $9,999 DC cap limits exposure to future increases. Before signing any Markham pre-construction agreement, confirm whether DCs are capped and at what amount — an uncapped agreement with a 2028 occupancy exposes you to years of potential increases.
• Understand whether the HST rebate offsets the DC. For homes up to $1,000,000, the full HST rebate of up to $130,000 (agreements signed before March 31, 2027) may exceed your total DC burden, effectively neutralizing its cost impact. Calculate both before determining your effective cost of entry.
• Review the DC clause with your real estate lawyer. This is the clause most commonly overlooked and most consequential when the building permit is issued.

Michael John Lau, Markham’s top REALTOR®, reviews DC caps and cost exposure with every pre-construction buyer client as a standard part of contract review coordination.

Frequently Asked Questions

How much are development charges on a Markham condo?

Combined City of Markham (~$43,000), York Region (~$68,000), and education levies total approximately $121,500 per condo apartment unit at 2026 rates — among the highest per-unit development charge burdens in Canada.

What is a development charge cap in a pre-construction agreement?

A DC cap limits the development charge a builder can pass to the buyer regardless of the actual amount at permit issuance. UnionCity, for example, caps levies at $9,999 per unit. Uncapped agreements leave the buyer exposed to DC increases between signing and permit issuance.

Does the HST rebate offset Markham development charges?

It can. For homes valued up to $1,000,000, the HST New Housing Rebate of up to $130,000 (agreements signed before March 31, 2027) may exceed the total DC burden, effectively neutralizing its impact on your net purchase price. Calculate both figures before buying.