Proposals for Solving Canada's Housing Crisis

This is an article from the Financial Post regarding proposals to solve the housing crisis: 1. Innovate Housing Supply Through Rapid Construction The current reliance on traditional on-site construction methods alone is insufficient to address the national housing supply shortage. Rapid construction must be prioritized to stimulate supply across the entire housing continuum. One promising solution for the future lies in innovation through the widespread adoption of off-site construction technologies, such as mass timber, panelization, and modular home building. These technologies not only complete projects 20-50% faster than conventional methods but can also lower the per-unit cost of housing as manufacturing operations and capital costs are scaled. Scale can be stimulated by providing contracts, loans, and support to manufacturers, and by incentivizing developers and early adopters through funding programs like the Housing Accelerator Fund and the Homebuilding Technology and Innovation Fund. 2. Enhance Intergovernmental Collaboration While there is no shortage of goodwill in addressing Canada's housing challenges, the lack of coordination and collaboration across all levels of government is exacerbating the crisis. The consequences extend beyond individual impacts, affecting the nation's overall economy and social fabric. Expecting coherent outcomes when politicians, housing stakeholders, civil society, and Indigenous groups operate solely within their respective silos is unrealistic. The answer to developing effective housing policies lies in establishing a National Housing Secretariat. A permanent mechanism is needed to foster a long-term, sustained, multifaceted, inclusive, and collaborative approach. Drawing inspiration from the successful secretariat model of the Federal Secretariat on Early Learning and Childcare, a housing secretariat can provide the framework, support, and resources to address housing issues, align policies, and build the necessary housing supply for Canada. A National Housing Secretariat would offer a comprehensive, innovative, and coordinated approach that structures both short-term measures and long-term strategies. 3. Expand the Housing Continuum Increasing housing supply across the entire "housing continuum" means encompassing all forms of housing, from emergency shelters and community housing to rental accommodations and homeownership. Emergency Shelters: Providing immediate relief for individuals experiencing homelessness. Community Housing: Offering affordable options for low-income households and vulnerable populations. Rental Accommodations: Increasing the availability of accessible and quality rental units to meet growing demand. Homeownership: Supporting programs and policies that enable Canadians to achieve stable and affordable homeownership. Targeted policies and incentives are needed to address gaps in each segment of the housing continuum, ensuring equitable and comprehensive solutions. 4. Tax Relief for Affordable Ownership Units Recent announcements highlight the potential impact of tax relief on addressing housing challenges: The Conservative Leader Pierre Poilievre's proposed GST exemption on new homes under $1 million. The federal government's HST/GST exemptions for purpose-built rental housing, student housing, seniors' rentals, and co-operative housing. However, affordable homeownership units built by non-profit organizations like Habitat for Humanity are still taxed at the same rate as market housing. This oversight limits the ability of non-profits to provide homes for low-income families. According to Habitat for Humanity, extending the HST/GST exemption to affordable homeownership could enable them to build an additional 13 homes for every 100 they currently provide, significantly expanding their capacity to address Canada's shortage of affordable housing. The government can rectify this oversight by providing a 100% rebate or exemption on HST/GST for new homes built by organizations like Habitat for Humanity. This policy would align tax policy with the goal of increasing affordable housing supply and support innovative partnerships with non-profit organizations. Conclusion: A Call to Action As Canada's population grows, housing demand continues to outpace the rate of new construction and available inventory. The recommendations above are not an exclusive roadmap to fully resolving the housing crisis, nor do they reflect all the work we are doing to draw attention to the multiple facets of the housing issue. However, they are productive steps toward ensuring an innovative, inclusive, and coordinated approach. Realtors work every day to help clients find a place to call home. To realize that future for all Canadians, action on our recommendations must happen now.