Using a new model to analyze the correlation between development charges and new builds, the CMHC found that small cuts of less than 20 per cent to development charges would have a modest effect on construction, boosting project viability by less than two per cent in most cases. But cutting the charges by between 50 and 60 per cent would trigger a building increase of about five per cent in, for example, Toronto and Vancouver, the country’s two most expensive housing markets, while eliminating development fees entirely would increase project viability by about 10 per cent in both cities.