???? Canada’s Housing Struggles

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On the menu:

• ???? Canada’s Housing Struggles
• ??? Headlines That Hit
• ?? Refresh: Value Trap
• ?? Trivia Thursday
• ?? Top Tweets

The Rallie Recap

???With many calling for an overhaul of Canada’s housing system, how will the nation respond?

• Canada saw huge slowdowns in the annual pace of housing starts, ranging from 10-33%, so what does this mean?
• ??? The amount of new residential housing units (aka ‘housing starts’) being constructed is decreasing at a concerning rate. And the crunch is getting worse as the nation struggles to house the rapidly growing population. ??
• ?? Although there are thousands of places to rent, many citizens struggle to find permanent housing within their price range.
• The imbalance of supply and demand in the housing market has many wary of short-term rentals taking up the total housing stock. ??
• But others disagree. ? By 2030, a coalition of housing experts, advocates and businesses claims Canada needs to build 5.8M new homes — including 2M rental units to face housing affordability.
• ?? It calls on the prime minister to reduce taxation and create cheap financing to encourage home builders to take on new projects.
• Despite the federal government’s current plan, $82B in funding for national housing, ?? several housing researchers argue the plan over-emphasizes building condominiums and home ownership that many can’t even afford.??
• ?? Meanwhile, Canada is experiencing (and the government is pulling for) record levels of immigration. But, one in five builders are cancelling entire projects because of rising interest rates and the housing environment. ??
• The question looms, where will everyone live?
• Most citizens are pessimistic and outraged by the situation. ??

• Still, the government argues “Canada needs high immigration to support the economy and build the homes it desperately needs.”???
• ??? A TD report disagrees, warning that?“continuing with a high-growth immigration strategy could widen the housing shortfall?by about a half-million units?within just two years.”???
• Canada’s new Minister of Housing and Infrastructure manage expectations???Sean Fraser warns that restoring the housing market’s affordability where a job is enough to afford a home “might take a bit of time,” with no easy fix in sight. ???
• As the Liberal party is falling behind in polls, will effective change to the affordability, availability and development of housing occur?

• The power of social security systems.????Some have argued that part of the solution is to double the proportion of social, non-profit and community housing to take Canada to the OECD average to notably extend affordability to citizens.???
• ???Additionally, experts warn?“if we don’t introduce innovative fiscal measures to revive the?for-profit purpose-built?rental market and incentivize capital investments, the reality is we won’t see construction pick up."???
• ???Will meaningful change occur in Canada’s housing market with different groups banding together to fight alongside the federal government? Time will tell.

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