Here’s a question that probably crosses your mind every time you pay rent: Why does housing have to be this expensive? Is it greedy landlords? Foreign investors? A lack of land?
Michael Ruge says the biggest culprit is something most people never think about: bureaucracy. It’s not sexy. It doesn’t make for good headlines. But it’s quietly adding 30 to 40 percent to the cost of every new home built in this country.
The hidden cost of permits
From a builder’s perspective, Forbes, Bloomberg, and others have done the math. Somewhere between 30 and 40 percent of the total cost of building housing has nothing to do with materials, labour, or land. The culprit is permits, approvals, development cost charges, and checklists with 100 items when 20 would do the job.
Forty years ago, you could get a project approved in three weeks. Now it takes up to five years. Work backward from that, and you’ll understand exactly how we got here. More importantly, you’ll know exactly where the solutions and the opportunities lie.
How we got here
The system was designed to protect us. But somewhere along the way, protection turned into paralysis. Every level of government added its own requirements, its own fees, its own approval processes. Each one seemed reasonable on its own. But together they created a wall that only the biggest developers can scale.
That means fewer homes get built. And when fewer homes get built, prices go up. It’s simple supply and demand. Builders pass their costs on to buyers and renters. And those costs include all the time and money spent navigating the bureaucracy.
What the numbers mean for you
When a developer has to spend five years getting approvals, they’re paying interest on their land loan for five years without earning any income. They’re paying property taxes. They’re paying for architects and lawyers. All that overhead gets added to the final cost of the building. And all that cost gets passed on to you.
Michael Ruge’s team has sat across the table from banks, municipalities, regulators, and investors for four decades. They know exactly where the system breaks down. And they’ve developed a workaround.
The Wayne Gretzky strategy
Michael Ruge’s approach to navigating bureaucracy is surprisingly simple. He calls it the Wayne Gretzky strategy. When asked what makes him the greatest hockey player, Gretzky didn’t claim to be the biggest, fastest, or most skilled. He said, “I go where the puck is going to be.”
That’s what we do. We listen to what and where the government wants you to build. We do the things they want you to do. They give you all kinds of benefits. You’re not trying to rezone. They make it easier for you to obtain the necessary permits.
Following the incentives
Instead of fighting city hall, Michael Ruge works with it. The Canadian government provides 95 to 100 percent financing with a 50-year amortization at about 2.5 percent interest. In return, they expect buildings to be more energy-efficient than code requires. Solar on every roof. Water reclaiming when you can. And 10 percent of the units must meet their definition of affordability.
Hit all those categories, and you get cheap money. That’s not a handout. That’s a smart business strategy that aligns with public policy goals. Everyone wins.
A practical path forward
The bureaucracy tax is real, but it’s not insurmountable. The key is understanding where the system is headed and getting there first. That’s what Michael Ruge’s team has been doing for 45 years. And it’s what they’re teaching others to do through their work.
The housing crisis didn’t happen overnight, and it won’t be solved overnight. But by cutting through the bureaucracy and building where governments want housing, developers can deliver more homes faster and more affordably. And that’s good news for everyone who needs a place to live.
Michael Ruge’s new book “Building Hope in the Housing – How to Solve the Rental Affordability Crisis” will be realeased this fall (2026).
Sources:
NLIHC Releases The Gap 2025: A Shortage of Affordable Homes
Quarterly Residential Vacancies and Homeownership, Second Quarter 2026
Housing Supply: Still Undersupplied by Millions of Units
Building Hope in Housing – How to Solve the Rental Affordability Crisis
Links to Michael Ruge, Affordable Apartments and his Initiatives:
Empty Offices, Full Homes – Michael Ruge’s Conversion Revolution
Vancouver Island’s Hidden Gem: Michael Ruge’s Waterfront Vision
Why Location Matters in Funding Real Estate Projects with Michael Ruge
How Michael Ruge Proved We Can Actually Solve the Housing Crisis
