IMO one of the really critical takeaways of this historical survey given the current climate is this: The claim that immigration has caused the crises is completely B.S. With the dynamics in place to drive the crises, increasing population can exacerbate the problem on the margins, but population growth didn’t cause the problem and deportations won’t fix it.
We need systemic fixes, like public development of purpose built affordable housing and regulation to prevent finalization of the human right to housing.
I always explain it along the lines of “increased immigration didnt cause the housing crisis, it was just the final catalyst needed for people to notice it”.
Maybe the crisis had finally gone on long enough to be noticed or maybe people felt more comfortable now that had someone to blame but reality is this crisis has been decades in the making.
The moment cities started ripping out street cars and bulldozing buildings to build parking lots was when the crisis officially began IMO.
It took a long time to get here. It’ll take time to get out.
It doesn’t have to. But the CPC and LPC are setting low targets for production, so we shouldn’t expect many units to be built. On top of that, neither are suggesting tax changes to discourage the financialization of housing.
So it’ll take a long time to get out, because there’s little political will to change the current system.
neither are suggesting tax changes to discourage the financialization of housing.
This is the big one. You can build as many houses as you want and it won’t help regular people if investors keep buying them all up.
That’s why I’m intrigued by Carney proposing the build Canada homes company… Will be interesting to see since we did something like that during WW2 that saw the feds build the housing and set the price?
I agree that such tax reform (and other regulatory measures) is really needed.
But, if the units are purpose built for affordable housing (as proposed federally in https://liberal.ca/housing-plan/ , for instance), this should at least not fall into the investor problem, no?