Why are development fees set to go up by nearly 50%?

The Bank of Canada increased rates this week by 1% potentially further cooling the current real estate market in an attempt to reduce inflation. Yet, the current development and material costs for building continue to skyrocket.

Some developers are reconsidering their future projects based on these increases putting pressure on the Canadian housing supply. Others are passing on these costs in their development fees for new builds. Are housing prices going to continue to climb in future years? Are the rate increases strong enough to cool the market long term? Or are we coming into an interesting time where investment housing can be picked up without the aggressive bidding wars seen in previous years? We will be watching the market closely.

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https://toronto.ctvnews.ca/toronto-is-in-the-midst-of-a-housing-crisis-why-are-development-fees-set-to-go-up-by-nearly-50-per-cent-1.5981630.