Politics

Experts say they've given Trudeau's cabinet a strategy to tackle the housing crisis

The authors of a recent report that pitched the federal government a way to restore affordability to Canada's housing market say they're optimistic their recommendations could soon become Liberal policy after addressing Prime Minster Justin Trudeau and his cabinet in Charlottetown, P.E.I.

Recent polling shows housing affordability is a major issue for Canadians

A worksite is seen Friday May 8, 2020 in Montreal. As Quebec's construction sector reopens Monday following weeks of shutdown to slow the spread of the virus, the main players behind the city's building boom in neighbourhoods such as Griffintown say it's "business as usual" and are confident the market remains robust. THE CANADIAN PRESS/Ryan Remiorz
A construction worksite in Montreal. The state of Canada's housing market is set to dominate the discussion today at the Trudeau government's cabinet retreat in P.E.I. (Ryan Remiorz/The Canadian Press)

The authors of a recent report that pitched the federal government a way to restore affordability to Canada's housing market say they're optimistic their recommendations could soon become Liberal policy after addressing Prime Minster Justin Trudeau and his cabinet in Charlottetown, P.E.I.

Tim Richter, president & CEO of the Canadian Alliance to End Homelessness, said addressing Canadians' anxiety about finding affordable housing is a "bit of a Gordian knot when it comes to policy."

"We were able, I think, to boil it down into a path forward anyway, a place to start to begin to undo that knot," he told reporters Tuesday.

"But before then, I think, governments knew they needed to do something but were really unsure of what to do, what their role is."

Richter helped draft a recent report on how the federal government can address the shortage of units in housing markets. The report, titled A Multi-Sector Approach to Ending Canada's Rental Housing Crisis, was written by a coalition of housing experts, advocates and industry representatives.

Along with co-author Mike Moffatt, founding director of the PLACE Centre at the Smart Prosperity Institute, Richter spoke to cabinet ministers meeting in Charlottetown to regroup ahead of the fall session of Parliament.

Moffatt said they couldn't reveal what was said behind closed doors, but suggested the cabinet was receptive to their ideas.

"I don't think we would be here unless they were taking this issue seriously, but I think it will also be incumbent on activists and others in the group to keep holding the government accountable," he said.

One of the report's key recommendations calls on the federal government to take on a leadership role and co-ordinate with provinces, territories and municipalities to ensure that more rental units are built.

Trudeau came under fire for saying earlier this month that "housing isn't a primary federal responsibility."

While he followed up that statement by acknowledging housing is something the federal government "can and must help with," the prime minister has been accused by housing advocates, pundits and Conservative Leader Pierre Poilievre of ignoring the severity of the issue.

Recent polling shows housing is a priority for Canadians and is fast becoming one of the most urgent political issues in Ottawa. 

According to a survey conducted by Abacus Data in July, the rising cost of living is far and away the top concern for Canadians — while housing affordability now rivals health care as a priority. Recent data from Environics also shows that Canadians are markedly more worried about household debt than they were a decade ago

"I think there's an increasing realization that a lot of existing homeowners are not happy with the status quo," said Moffatt.

"They're not happy with the status quo because their mortgages are renewing at much higher interest rates, or they're not happy with the status quo because they have an 18-year-old that's about to start college and university can't find somewhere to live. Or they have a 28-year-old that's living in their basement that they can't get rid of."

Fraser looking for measures with 'the greatest impact'

According to the Canada Mortgage and Housing Corp. (CMHC), Canada needs to build 5.8 million new homes — including two million rental units — by 2030 to tackle housing affordability.

The housing report presented to cabinet also calls on Ottawa to create a national workforce strategy — in co-operation with other levels of government, trade unions and educational institutions — to ensure Canada has enough skilled labour to build the housing it needs.

It also calls for financial reforms to ensure rental units are viable for builders and developers.

Sean Fraser, Minister of Housing, Infrastructure and Communities, speaks to reporters during the Liberal Cabinet retreat in Charlottetown, Monday, Aug. 21, 2023.
Housing, Infrastructure and Communities Minister Sean Fraser speaks to reporters during the Liberal cabinet retreat in Charlottetown on Aug. 21, 2023. (Darren Calabrese/The Canadian Press)

Housing, Infrastructure and Communities Minister Sean Fraser said Monday he was looking forward to speaking with the authors before committing to any of their proposed solutions.

"I think we need to have a conversation with the report's authors, with the people who informed that report ... to determine how we can best prioritize the measures that are going to have the greatest impact as quickly as possible," he said.

"But I also need to engage with other players in the housing sector to make sure that we're leaving no stone unturned."

The cabinet retreat wraps up on Wednesday.

WATCH | CBC EXPLAINS: People with disabilities are getting left behind in Canada's housing crisis:

CBC Explains | People with disabilities are getting left behind in Canada’s housing crisis

1 year ago
Duration 1:56
A shortage of homes to meet growing demand and rising prices to buy or rent are among the main issues facing Canadians looking for homes. For people with disabilities, these issues are exacerbated by financial supports that experts call inadequate and a dearth of accessible housing.

ABOUT THE AUTHOR

Catharine Tunney is a reporter with CBC's Parliament Hill bureau, where she covers national security and the RCMP. She worked previously for CBC in Nova Scotia. You can reach her at [email protected]

With files from Aaron Wherry and Darren Major

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