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In the midst of a turbulent global landscape, Canada’s economic challenges are becoming increasingly pronounced, particularly in the realms of housing and homelessness. As the country grapples with a crisis that affects nearly every citizen, experts argue that a pivotal opportunity exists to reform the housing system. Tim Richter, founder and CEO of the Canadian Alliance to End Homelessness, and Tyler Meredith, senior fellow at the Munk School of Global Affairs, advocate for decisive action to address these pressing issues.
The Current State of Housing
Over the last decade, despite a significant increase in federal housing spending, the affordability of homes has deteriorated for the majority of Canadians, except for the wealthiest segments of the population. The latest national point-in-time count reveals a shocking 300 per cent rise in unsheltered homelessness since 2018, even as housing prices and rents have recently experienced a decline.
Prime Minister Mark Carney has outlined ambitious objectives aimed at addressing this crisis, including a commitment to double the rate of construction and expedite factory-built housing. However, the central question remains: how can we ensure that these investments directly benefit those most in need?
The Need for a Coordinated Approach
Federal efforts alone will not suffice in overcoming this crisis. Provinces and territories maintain control over essential elements such as zoning regulations, planning systems, and supportive housing frameworks. Without a collaborative mechanism that aligns all levels of government towards common goals, building sufficient and genuinely affordable homes will remain an uphill battle.
Richter and Meredith propose the establishment of a Canada Housing Accord, which would streamline efforts and create a coordinated approach to address the housing crisis. This accord could be implemented without hindering ongoing initiatives and would serve as a vital tool to accelerate progress and enhance clarity of purpose across the nation.
Fragmentation of Housing Policies
The current housing landscape in Canada is characterised by fragmentation. Approval processes differ significantly across provinces, while affordability standards lack consistency. This disjointed system leaves vulnerable populations caught in limbo. For instance, in Metro Vancouver, a plan to increase development charges by over 200 per cent is threatening to nullify the benefits of the federal government’s new home-building GST rebate.
Moreover, the COVID-19 pandemic has exacerbated existing challenges, with Rapid Housing Initiative projects facing delays due to insufficient provincial funding for the necessary social services. Chronic homelessness continues to grow, outpacing the effectiveness of existing policies.
The Way Forward: Establishing a Canada Housing Accord
The time for action is now, especially with existing federal-provincial housing agreements set to expire in 2027-28. Negotiations are necessary, and they can either be fragmented or part of a broader, outcome-focused strategy. The establishment of a Canada Housing Accord would set forth clear expectations and responsibilities, facilitating a unified approach to tackling both housing and homelessness.
Critics may fear that introducing a national framework could slow down progress at a time when speed is essential. However, historical precedents, such as the rapid establishment of child-care agreements, demonstrate that a well-defined national template can lead to swift, effective action while maintaining coherence across systems.
A Comprehensive Strategy for Housing and Homelessness
A Canada Housing Accord would allow for a harmonised set of rules that would address the obstacles hindering construction. By modernising housing codes, streamlining approvals for factory-built homes, and establishing consistent standards, the country can work towards a more efficient and effective housing system.
It is vital to recognise that the housing crisis is not merely an isolated issue; it has far-reaching implications for the broader economy. High housing costs diminish disposable income, adversely affecting consumer spending and labour mobility, making it difficult for businesses to attract and retain talent. A study from Université du Québec highlights that a lack of affordable housing has led to significant operational challenges for businesses, with many forced to decline contracts or reduce hours due to staffing shortages.
Why it Matters
Canada stands at a critical juncture, and the time to act is now. The proposed Canada Housing Accord could serve as a catalyst for transformative change, ensuring that investments in housing yield tangible benefits for all Canadians. By fostering collaboration among federal, provincial, and territorial governments, we can create a unified strategy that not only addresses the current crisis but also lays the groundwork for a more stable and prosperous future. Without swift action and a coherent plan, the opportunity to reshape Canada’s housing landscape may slip away, leaving generations to grapple with the consequences of inaction.
