If you were listening to the Democratic convention, one of the commitments was to build three million new housing units in the next four years over the one million now planned. In addition, a $25,000 payment was being offered to first-time home buyers. It is all designed to meet the housing crisis in the United States. Just as the US has a housing shortage so does Canada.
In a report dated June 23, 2022, CMHC estimated that Canada would require 2.3 million new housing units by 2030. Not all units must be private ownership. Many can be rental units. Not all must be new construction. Many can be conversions of office or factory buildings.
In Canada, the minister of housing, Sean Frazer identified five federal properties to be turned into low-cost housing. On Monday Prime Minister Trudeau announced fifty-six federal properties would be made available for housing. By 2030 1.5million households will need housing. Canada too has a housing shortage. No province or territory has adequate housing. Even Fort Frances has a need for rental units.
In 2002 a household used 35% of their disposable income to own a home. By 2021 families used 60% of their disposable income to pay their mortgage. Lower interest rates will help, but meeting the demands of new households and immigrants is most important.
Subdivisions don’t occur instantly. Most take three to five years to plan, get municipal approvals, financing and infrastructure installed while preselling lots and condominiums. Those federal properties will not have any households until 2027.
Solving the housing shortage is a complicated process. Canada already has a shortage of trades people. One third of our trades people are expected to retire. They will need replacement and expansion. While we are attracting one-half million immigrants, Canada must look to attract tradespeople to Canada to replace retirees.
One of the surprising statistics that is recorded is that it takes more manpower to build a home today than a decade ago. New construction techniques can reduce construction time and costs. Improved insulation, windows, and energy devices will reduce monthly costs for homeowners.
In Toronto and immediate area, a building lot costs over $250,000. In Fort Frances the cost is less than half. At least two apartment projects have been proposed. Could a federal low interest loan make the projects viable? Could the community reduce the building permit cost to make the projects move forward?
