The three federal parties are in a rush to announce new policies to build upwards of 5 million homes by 2030. It is a huge mountain to climb, and all three parties are putting on their mountain climbing gear and making huge announcements claiming they have the solution to solve Canada’s housing crisis. Not to be out hustled, provincial premiers are also getting into the act to appear that they too have additional solutions to put roofs over the heads of Canada’s citizens who cannot afford to buy as first-time homeowners, or are seeking to find rental accommodations.
Affordable new housing and apartment units are not just a large urban problem, but can also be found in Fort Frances and across Northwestern Ontario.
Prime Minister Trudeau, after meeting with his caucus this past week, made an announcement that his government would eliminate the GST on new purpose-built rental units across Canada. Not to be outdone, both opposition leaders affirmed that they would do the same. Premier Ford got into the act by saying he would eliminate the provincial sales tax on new construction of rental housing.
This is a huge win for real estate development companies and major construction companies allowing them to expand their size and scope of operations into small centres. It does little to assist buyers from building their own homes and expanding neighborhoods. Over 40 per cent of new homes expected to be built in Canada over the next seven years will be by homeowners – many will be first time buyers. They won’t get to benefit from the GST or the provincial sales tax.
In British Columbia, the government has passed legislation that would allow up to four housing units on a traditional lot. Ontario legislation now allows three. In Fort Frances, we have seen signs of the NIMBY complex where residents in single detached home neighborhoods have opposed construction of town houses or duplexes. This too acts as a barrier to meeting housing demands.
Locally, Council should review other taxes that homeowners and rental property developers pay to get their projects underway. Lots developed and owned by the town have already been reduced in price. Can building permits be reduced for new construction by first time homeowners?
There are no silver bullet solutions to solving the housing and rental crisis in Canada. Instead, there are probably a hundred minor adjustments that can be made by municipal, provincial, and federal governments to expand the number of buildings starts across Canada. Every building’s cost should be examined.