Federal parties agree on the need for Ottawa to play a bigger role in boosting Canada’s housing supply, but their methods vary widely. Recently, economist Alex Hemingway from the B.C. Society for Policy Solutions examined the housing policies of the major federal parties. He believes their plans don’t fully address the extent of the housing crisis.
Hemingway laid out two crucial questions he used to evaluate these policies: How will they significantly enhance affordable housing in the non-market sector? And how will they tackle the issue of exclusionary zoning in expensive cities?
The Liberal Party proposes creating Build Canada Homes, aiming to double home construction to almost 500,000 new homes per year. They plan to support prefab home manufacturers with $25 billion in debt financing. An additional $10 billion will focus on affordable housing, with $6 billion specifically for deeply affordable units aimed at vulnerable groups. However, Hemingway notes the lack of details on how these funds will be used and the specific targets for unit construction.
The New Democrats want to use federal lands to build over 100,000 rent-controlled homes by 2035 as part of a larger goal of constructing three million new homes by 2030. They also propose enhancing the Public Land Acquisition Fund to secure more land for affordable housing. While Hemingway sees potential in utilizing public lands, he feels that setting a target of 10,000 units per year nationwide may not be ambitious enough.
The Conservative Party’s stance on non-market housing is less clear. Hemingway points out that their platform doesn’t address this issue directly and even suggests cutting federal housing funding. However, they do propose eliminating the GST on new homes worth up to $1.3 million, which they claim could save families significant amounts. Yet, Hemingway warns this could actually inflate home prices further, causing buyers to compete for the same limited homes.
The Greens frame housing as a human right in their platform, aiming for a large-scale public housing initiative. They promise to maintain affordability through legal covenants and to limit corporate ownership of single-family homes. This plan is touted as one of the most significant public housing efforts since the 1970s, highlighting job creation and local building materials.
Hemingway emphasizes that while funding is essential, the lack of zoning reforms remains a significant barrier to increasing housing supply. He stresses the need for federal and provincial cooperation to tackle zoning issues, which are often outside federal control but critical for effective housing policies.
In the broader context, housing challenges are closely tied to economic stability. Hemmingway argues that addressing these issues is vital not only for households but also for improving Canada’s economic productivity. As the country seeks to reduce reliance on the U.S. economy, resolving housing shortages and zoning barriers should be a top priority. With ongoing discussions about tariffs and trade, the need for affordable housing is more pressing than ever.
In a recent survey by the Canadian Real Estate Association, nearly 70% of young adults cited affordability as their primary concern, suggesting a widespread sentiment that housing needs urgent action. As political parties refine their strategies, the voice of the public will play a crucial role in shaping Canada’s housing future.
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