What should our National Housing Strategy look like?

What should our National Housing Strategy look like? We’ll find out next week, when the federal government tables its report on Nov. 22, following months of consultations with the provinces and territories, industry experts and everyday Canadians.

The issues are varied and complex, involving differing provincial and regional economies, housing markets and conditions, from affordable housing to rental markets to homeownership.

We went to a few expert sources of our own – some of whom were directly involved in the government consultations – to get some insight into what to expect.

JASON BURGGRAAF
Government Relations and Policy Advisor
Canadian Home Builders’ Association
Ottawa

The biggest challenge in devising the National Housing Strategy is not that housing markets are independent. We believe the government appreciates that fact. But a true National Housing Strategy must address all aspects of the spectrum. It must address affordable (social) housing requirements and market-based housing.

More than 94 per cent of Canadian households currently live in privately-owned homes of different tenures (including rental). A complete and comprehensive National Housing Strategy must address the full housing continuum, from social housing to market homeownership and everything in between. It should focus on creating a housing system where people can move up the housing continuum towards increased independence and self-sufficiency.

Sustainability is also a key consideration. While changes may seem prudent to prevent a valuation bubble, policies need to be broad enough to apply across all markets and prove rational in a variety of circumstances and points in the economic cycle. We can’t consider only today’s market conditions, and we certainly can’t make changes without considering both the intended and unintended consequences. The housing sector is deeply interconnected with the overall Canadian economy, so changes must be made with caution. Slowing growth or a downturn in housing prices could have dire consequences for the overall economy.

CHRIS J. POTTER
Partner, National Leader, Real Estate Tax Practice
PwC Canada
Toronto

We have to remember there isn’t one housing market in Canada – it is a large collection of individual markets, and there are lots of competing issues at play.

Taking Vancouver and Toronto out of the mix, we don’t really have an affordability issue. With policy, you’re going to have a broader impact. We have to look at unintended consequences. The recent mortgage changes, for example, have had adverse impacts where affordability isn’t an issue.

We have to be careful that we understand what we are talking about – we don’t have one homogenous market.

There is also a need for better information – making sure that all three levels of government are working together to understand the true impact policies have on market forces.

All three levels of government must also work with industry in any given market to come up with a plan that’s going to work.

Real estate has a huge impact on the economy and jobs, and we need to make sure we have a large part of the economy sustainable and working.

First-time buyers were hit hardest by the recent changes, and we’re now making it harder for first-time buyers – forcing them into rentals, in cities where there are low vacancies and high rents. Where are they to go?

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