Housing specialists, proponents, and industry representatives deliver a collective message to the government: Increase the construction of rental units.
“A lot of the conversation is ‘Whose responsibility is it to solve this?’ And the answer should be ‘It’s everyone’s,‘” Moffatt told CBC News.
The report urges governmental bodies at all levels to collaborate in tackling the shortage of rental units in Canada.
A group consisting of housing specialists, proponents, and industry delegates is urging the government to revamp its policies to facilitate the construction of additional rental units. This suggestion stems from the recently released report titled “A Multi-Sector Approach to Resolving Canada’s Rental Housing Challenge,” which was collaboratively authored by Mike Moffatt, the inaugural director of the PLACE Centre at the Smart Prosperity Institute; Tim Richter, the President and CEO of the Canadian Alliance to End Homelessness; and Michael Brooks, the leader of REALPAC, an association representing 130 real estate enterprises.
Scheduled for release on Tuesday, the report presents a series of suggestions aimed at tackling the scarcity of rental units in Canada’s major urban centers.
As per the Canada Mortgage and Housing Corp. (CMHC), it is imperative for Canada to construct 5.8 million new residences, encompassing two million rental units, by 2030 to effectively address housing affordability.
The report highlights the ongoing growth of Canada’s renting demographic and the escalating cost of rentals over recent years.
A pivotal proposal within the report emphasizes the importance of the federal government assuming a leadership position, collaborating with provinces, territories, and municipalities to facilitate the construction of an increased number of rental units.
“This is too big for any one government or sector to handle alone and so we’re hoping the federal government will jump into a leadership role and meet us in the square to have this conversation,” Richter said.
The report highlights the ongoing growth of Canada’s renting demographic and the escalating cost of rentals over recent years.
A pivotal proposal within the report emphasizes the importance of the federal government assuming a leadership position, collaborating with provinces, territories, and municipalities to facilitate the construction of an increased number of rental units.
Precisely, the report urges Ottawa to establish a comprehensive nationwide workforce strategy, working in collaboration with other tiers of government, trade unions, and educational institutions. This strategy aims to guarantee an adequate supply of skilled labor required for the construction of the necessary number of units to fulfill the demands of renters.
Additionally, the report advocates for financial adjustments aimed at ensuring the feasibility of rental unit projects for builders and developers. Brooks emphasized that industry expenses have escalated to the extent that the likelihood of a substantial decline in construction ventures for rental units in the upcoming years is high.
“We’re facing a situation that’s poised to deteriorate further unless certain aspects are modified,” he remarked.
Several of the financial remedies proposed in the report involve introducing a tax credit for developers who allocate investments toward community rental units. Additionally, the report suggests postponing the capital gains tax when a rental housing project is sold, and the resulting funds are reinvested in the development of more rental units.
Furthermore, the report advocates for the government to provide fixed-rate financing options through CHMC (Canada Mortgage and Housing Corporation) or the Canada Infrastructure Bank for rental construction projects.
In order to provide enhanced support to low-income renters, the report proposes the implementation of a focused housing tax benefit aimed at families whose rental expenses exceed 30 percent of their income.
The report also includes suggestions that garner support from federal opposition parties.
Conservative Leader Pierre Poilievre has previously proposed linking federal infrastructure funding to municipal housing permit approvals. In a similar vein, the report recommends that federal funding be contingent upon municipalities achieving their housing targets.
The report also proposes the exemption of GST on rental housing construction, aligning with the stance advocated by NDP Leader Jagmeet Singh.
The authors expressed their aspiration that their report would serve as a beacon for governments of diverse political affiliations, urging them to collaborate in addressing the housing crisis.
“I think we were all pleasantly surprised just how much common ground there was,” Richter said of working on the report with his two co-authors.
In a press briefing on Monday evening, Housing Minister Sean Fraser disclosed that his administration is exploring methods to accelerate housing construction by means of subsidies and alternative incentives.
“Right now we want to bring down the cost of living. That includes bringing down the cost of rent for people by building more purpose-built rental construction right across the country,” he said. “If you are a person who is willing to work in this country, it’s unacceptable that you can’t afford a place to live in the community you call home.”
He also conveyed to journalists in Vancouver that previous federal administrations were primarily focused on offering subsidized housing to individuals with low incomes. However, there has been a significant change, as even working professionals are encountering challenges in affording a home.
“For the better part of the last half century, federal governments of different partisan stripes, by the way, Liberal and Conservatives, have stepped away from forwarding affordable housing in this country,” he said.
“That should never have happened, but it did.”
