Promising to double housing to keep pace with population growth and tackle a deficit that helped fuel a real estate boom, Prime Minister Justin Trinto’s Liberals outlined plans last month to build 3.5 million homes over the next decade.
Read more: 63% of Canadian non-homeowners have quit buying a home: Ipsos
However, experts say the housing shortage in Canada is not as severe as the government is proposing, noting that start-ups are running at historic levels – around 250,000 a year – with a record number under construction, although delays are being delayed. The story goes on under the ad “I think we definitely need a new offer to deal with the growing household growth as a result of immigration. “I think 3.5 million is a complete exaggeration,” said Steve Pomeroy, a housing consultant and professor at Carleton University in Ottawa. There are very real dangers in trying to increase the pace of construction very quickly, he added. 2:22 No ‘silver bullet’ when it comes to correcting the housing crisis in Canada, Freeland says No ‘silver bullet’ when it comes to correcting the housing crisis in Canada, Freeland says – April 13, 2022 “The consequence, if we try to increase it, is that we will face a lot of issues in the supply chain – labor, land and materials – and in fact we will push house prices even higher,” Pomeroy said. Alarms are already sounding in Canada’s construction industry, which is facing a severe shortage of workers and a pension crisis, not to mention the rising cost of timber and other raw materials due to the global supply chain crisis. The story goes on under the ad Housing construction also generally falls under the jurisdiction of provincial and municipal governments, which makes it more difficult to draw up a national strategy. National housing prices have more than doubled since Trinto took office in late 2015, and profits far exceed those of the United States and Canada’s other Group of Seven bonds over the past 15 years. Trending Stories
Organizers say the “Rolling Thunder” protest is ending in Ottawa 14-year-old boy held on $ 1 million bail for murder and sexual assault on 10-year-old girl
Rising prices have made homes in cities like Toronto and Vancouver inaccessible to many residents, prompting authorities to take steps to ease the pressure. The Trinto government recently announced a two-year ban on foreign buyers. “We just did not have enough housing supply in Canada to reflect the dramatic increase in our population compared to the G7 partner countries,” said Canadian Housing Minister Ahmed Hussen in an interview. Hussen cited OECD data showing that Canada has fewer homes per 1,000 people than the G7 average. The existing deficit amounts to about 1.8 million homes, according to estimates by Scotiabank. The story goes on under the ad As immigration grows and more young people start creating new households, the current pace of construction is barely “standing out” in this gap, said Bob Dugan, chief economist at Canada Mortgage and Housing Corporation, the national housing agency. 2:16 Federal housing money may not cool the hot market Federal housing may not cool the hot market – April 11, 2022 “It will take 36 years to get there at the current pace of housing,” Dugan told reporters late last month. “And we have some internal estimates that suggest the need is much higher than this 1.8 million,” Scotiabank predicts. However, critics of this assessment say that Canada needs fewer homes overall, because it has more people per household than the G7 average, due to young children and intergenerational living. And the housing-to-population ratio of Canada is equivalent to the United States and the United Kingdom, which have not seen nearly the same price increase. “You find me skeptical about how much supply shortages there are, perhaps outside of some big malls,” said Doug Porter, chief economist at BMO Economics. The story goes on under the ad
Read more: At least 20% of Canadian MPs own rents and real estate investments amid the housing crisis
A more intense construction blitz also risks oversupply in the market. The last time house prices in Canada fell for a significant period was in the early 1990s, following a sharp rise in prices over the past decade that led to a building boom and then oversupply. 1:38 Labor shortages worsened by housing crisis in New Brunswick countryside Labor shortages worsened by housing crisis in rural New Brunswick – February 8, 2022 With rising interest rates reducing demand and housing starting at high levels, this is a situation that could be repeated – to some extent – if construction increases too much. “It is very, very likely that you will end up with an oversupply,” Porter said. “Personally, I do not sleep that much for it… But I would not dismiss it as a concern.” – Report by Julie Gordon in Ottawa
