Waterloo presses pause on inclusionary zoning near transit, cites uncertainty in housing market

A zoning bylaw in Waterloo set to go into effect at the end of this month has now been put on pause, meaning developers won’t be forced to build affordable housing units in Major Transit Station areas just yet.

Developers told the city an unstable housing market, mixed with a lack of being able to attain financing, is causing developments to slow down or halt.

Inflation has also driven up construction costs and a changing political landscape was cited as another reason for a pause.

One developer spoke to council, saying he hasn’t been able to build for a while due to a lack of financing from the banks.

Adam Lauder, Waterloo’s Manager of Community Planning, said staff are recommending a pause on implementation for now, not looking to reconfigure the bylaw.

“There are a lot of uncertainties as I think everyone knows and is picking up on. In my 17 years at the city I haven’t seen such an uncertain time and haven’t seen a real estate market as challenged as it is today,” said Lauder.

Waterloo council will discuss the zoning bylaw and defer implementation March 24.

Coun. Royce Bodaly and Coun. Jen Vasic did not vote for the deferral, instead wanting the zoning bylaw to be pushed through regardless of the current housing market.  

“We are living in the real world and the development community is having a hard time getting financing, I get that. And then I think of the folks who are really struggling who have real day to day fear,” said Vasic.

Council directed staff to report back in June with recommendations for a new implementation date.