Premier Ford’s Solution for Housing Crisis

Last October, Ontario Premier Doug Ford announced a new plan for the housing crisis. According to CTV News, Ford implemented the More Homes Built Faster Act to tackle housing affordability, stating “our government will never ignore the many families who want a place to call home.” In his fifth year as Premier, Doug Ford announced the plan to ease up zoning legislation to allow homeowners to introduce tenants to their own primary residents. The ideas he has in mind include allowing homeowners to build garden suites, build basement apartments, or section off any portion of a primary residence for rent, up to 3 units. Previously, homeowners would need to check with their local bylaws. Usually, the building of a secondary property on one’s own home was not permitted in many residential areas.?

The Financial Post states that 70% of Toronto is zoned strictly for single-family properties. Not only does this limit people’s individual freedom with their homes, but also limits property types that could be of great benefit from many Torontonians. Unlike those of the previous generations, people have to be wealthy to afford a home. The annual income of a single family to purchase a detached home needs to be $280,000, and $167,000 for a townhome. The Financial Post follows this up by saying that the median income for a couple in Ontario is $97,000, a huge gap from where they would need to be to afford a single-family home – the primary housing option in Toronto.?

Would this even work? David Clement from the Financial Post cites success stories. Zoning reform has made a difference worldwide. Housing has become more affordable in places like Minneapolis and Japan, where these changes to legislation were made. Specifically, “a two-bedroom apartment in Toronto is now more than double the price of an equivalent unit in Tokyo.”?

This month, the city of Toronto voted for the motion. In Toronto, it will be acceptable to renovate your house or property with the intention of housing individuals or a family. This would theoretically help both homeowners and renters afford a roof over their head. If they decide to, homeowners can use their newly renovated space to rent profit. They could also use it to house family members or friends who need accessible housing. The point is, now you can actually build these things with freedom from local bylaws. For renters, this increase in supply, as well as cheaper prices will make the dream of affordable housing in the city work.?

Having a stranger in your home may not be the most attractive idea. I asked people in my age bracket (25-30 years old) if, given the housing crisis and increased cost of living, they would be willing to section off a part of their home for rent. The answer surprised me: 68% of responders said “No”. I had expected people to be all over this, especially for the garden suite idea. I suppose living in a backyard home at a low cost would be more attractive that inviting a stranger to your primary residence.?

When push comes to shove, this new plan does open up options for both tenants and homeowners. With a government that has treated housing as a privilege rather than a need in an unaffordable city, it is nice to see someone taking charge. The extra income that homeowners can generate will bring welcome relief from the rising cost of living.?

However, we will need to combine this effort with a strategy that dramatically increases the supply of, not houses, but great jobs. Lowering taxes so that Canada becomes a destination for companies has to be a priority. The gap between the average wage and that needed to support a home must be eliminated. Either that, or perhaps it’s time to investigate telecommuting from Tokyo.?