The 31-Month Permit Delay Problem — Why Markham Homes Take So Long to Build and What It Means for Prices

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The 31-Month Permit Delay Problem — Why Markham Homes Take So Long to Build and What It Means for Prices

31 months — the average time from development application to building permit in Ontario's major municipalities. That delay adds millions in carrying costs before a shovel hits the ground. Michael John Lau & Neeraj Moolchandani explain why it drives Markham's prices.

📅 June 11, 2026
 
⏱ 8 min read
 
✍️ Michael John Lau & Neeraj Moolchandani
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NM

Michael John Lau, REALTOR® & CPA/CMA · Neeraj Moolchandani, REALTOR® · Kaizen Real Estate Team

Top real estate agents in Markham · Licence #4784577 · eXp Realty · eXp Luxury · Markham, Ontario

ICON 2024 Diamond 2023 Realtor of the Year 2022 & 2021

There is a number at the heart of Ontario’s housing crisis that does not get enough attention: 31 months. That is the average time from development application submission to building permit issuance in Ontario’s major municipalities — a delay that adds millions of dollars in financing and carrying costs to every housing project before a single shovel breaks ground.

Michael John Lau and Neeraj Moolchandani, top real estate agents in Markham Ontario, track the permit timeline problem carefully because it is a direct driver of the high purchase prices, constrained supply, and developer retreat that shape Markham’s market today.

Where the Delay Comes From

The 31-month average includes multiple overlapping approval stages: official plan amendment (if required), zoning bylaw amendment, site plan approval, subdivision approval, draft plan conditions, servicing agreements, and finally building permit issuance. Each involves municipal staff review, agency circulation, public consultation, potential Ontario Land Tribunal appeals, and legal registrations.

In Markham, the City has invested in planning resources and digital systems — including the ePLAN portal — to reduce timelines. But the volume of applications, the complexity of Markham’s layered planning framework, and the litigation risk in a community with active neighbourhood opposition to density mean approval timelines for complex projects remain substantial. Ontario’s Bill 98 directly addresses this, with a stated goal of “building homes, fighting delays, reducing costs” through standardized official plans, a standardized set of 12 land use designations, and streamlined approvals.

What Permit Delays Cost — In Dollars and In Housing

The financial cost of a 31-month delay on a 500-unit Markham condo tower is enormous. A developer who has purchased land, secured financing, and submitted applications must carry land, professional fees, and interest for 31 months before any construction revenue. At today’s borrowing costs, carrying a $40 million land purchase over 31 months adds approximately $5 to $7 million in financing cost — before construction begins. That flows directly into the per-unit price at pre-sales.

The housing cost is equally significant. A project that takes 31 months to permit and 24 months to build takes 55 months — over four and a half years — from application to occupancy. Homes Markham needs today are occupied in 2030. The gap between when housing is needed and when it is available is the gap that drives prices up and renters out.

Understand the Supply Pipeline Behind the Price

Michael John Lau & Neeraj Moolchandani track planning approvals and permit timelines for Markham’s active pipeline as part of the supply analysis they provide to investor and buyer clients.

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What This Means for Markham Buyers and Sellers

For pre-construction buyers, permit timeline risk is essential to understand. Projects at the pre-sales stage today are often still in the approval process — subject to delays, appeals, and revisions before a permit is issued. Your purchase agreement’s closing date, occupancy date, and delay-compensation provisions exist precisely because permit delays are a routine, foreseeable risk.

For sellers of existing homes, the permit delay problem is long-term good news. The 31-month pipeline means that even if every Markham developer launched today, supply from those projects would not appear until 2028 at the earliest. Homes available today for immediate possession compete against a pipeline that is, by regulatory design, years away — a persistent structural constraint that supports values for existing stock. Bill 98, the Yonge North Subway Extension’s transit-oriented community approvals, and the standardized official plan framework are all designed to compress the timeline — but even optimistic scenarios make this a 2028 to 2031 phenomenon, not a 2026 one. Michael John Lau and Neeraj Moolchandani, top real estate agents in Markham Ontario, track planning approvals and permit timelines for Markham’s active development pipeline as part of the supply analysis they provide to investor and buyer clients.

Frequently Asked Questions

How long does it take to get a development permit in Ontario?

On average, 31 months from development application submission to building permit issuance in Ontario's major municipalities — spanning official plan and zoning amendments, site plan and subdivision approval, servicing agreements, public consultation, and potential Ontario Land Tribunal appeals.

How do permit delays affect Markham home prices?

A 31-month delay on a 500-unit tower can add $5–7 million in carrying costs (land, fees, interest) before construction begins — costs that flow directly into the per-unit price buyers pay at pre-sales, while also delaying when needed housing reaches the market.

Will Bill 98 speed up Markham development approvals?

That's its goal. Bill 98 introduces standardized official plans, 12 standardized land use designations, and streamlined approvals to compress the timeline — but even optimistic scenarios make meaningful supply impact a 2028–2031 phenomenon rather than 2026.

Disclaimer: Michael John Lau is a licensed REALTOR® and CPA/CMA, and Neeraj Moolchandani is a licensed REALTOR®, at Kaizen Real Estate (eXp Realty, eXp Luxury), serving buyers and sellers in Markham, Ontario and across York Region. Licence #4784577. Office: 8763 Bayview Avenue, Richmond Hill. This blog is for general informational purposes only and does not constitute financial, legal, tax, or investment advice. Market data is approximate and sourced from publicly available information at time of writing. Always consult a qualified licensed professional before making any real estate decision. The trademarks MLS®, Multiple Listing Service®, and REALTOR® are owned by the Canadian Real Estate Association (CREA).

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