Exodus of new home construction to sprawling rural communities sparks new strategy to lower lot prices in London

'Important to grow within our city' City hall is lowering the price of residential lots, trying to entice development. CTV London's Daryl Newcombe explains.

City council is betting that a dramatic boost to the supply of residential land within the city limits will lower the price of lots in new subdivisions and slow the number of people moving to bedroom communities in Middlesex County and beyond.

On Tuesday, a majority of council supported asking the province to add 2,000 hectares of additional land for residential development within London’s Urban Growth Boundary (UGB) in hopes that the excess supply will reduce the price of lots.

According to city staff, the 2,000 ha would satisfy anticipated housing demand for more than 40 years—well beyond the 25-year to 30-year planning horizon required by provincial policy.

During the meeting, Coun. Skylar Franke expressed doubt, “I understand the argument that if we don't build, [then] neighboring communities will - but I also would argue that if we do build, neighboring communities will still build.”

But Coun. Steve Lehman said competitive lot prices should help curb the exurban sprawl happening in rural communities within a short drive of London.

“If we drive building [houses] outside of our limits, then we don't have control. So, I think it's very important that we have the ability to grow within our city boundaries,” he told CTV News.

Lehman said the impact of exurban sprawl can be seen in his west London ward.

A two-lane section of Oxford Street between Sanatorium Road and Westdel Bourne is now scheduled for widening to four-lanes to address traffic from the Riverbend and West 5 neighbourhood, but also Kilworth and Komoka.

“When I go out to Kilworth I see all these new neighborhoods that are being built out there, folks are driving in [and] going over the bridge using our infrastructure,” he explained. “Now we have to expand the bridge [and] who’s paying for it? London taxpayers.”

The warden of Middlesex County doesn’t believe the cost to expand infrastructure needs to pit the city against the county.

“That’s not a problem between the city and the county, that’s about the number of dollars that are being given from the province to fund it,” said Warden Brian Ropp. “So, we have to work together as a region and get that stuff accomplished.”

There are many examples of where residents of the city and county travel between their communities to work, shop, and enjoy recreation.

The warden says local leaders need to find a way to cooperate for the good of everyone.

“We're going to be meeting in the new year with the city and I think one of the main conversations is talking about that,” added Ropp.

A meeting between city and county officials is expected in the first quarter of 2025.