Canada aims to address its housing shortage by leasing public land for affordable housing construction, with plans to build 3.9 million homes by 2031. However, this falls short of the 1.2 million units needed between 2023 and 2030. Prime Minister Justin Trudeau announced measures to tackle the crisis, including changes to tax structures and combating mortgage fraud. Critics emphasize the substantial investment required, estimated at CAD 2 trillion. Housing responsibilities in Canada primarily rest with provinces and major municipalities, with Ottawa relying on policy measures and funding despite lacking direct involvement in construction.
Canada intends to address a housing shortage by granting developers access to public land for constructing affordable homes. Prime Minister Justin Trudeau revealed this initiative aiming to build around 3.9 million houses by 2031. The government identifies the land as being underused, potentially including abandoned industrial areas, former government facilities, and schools with declining enrollment.
The current plan falls short by 1.2 million units needed between 2023 and 2030, as reported by the Canada Mortgage and Housing Corp. Despite this, the Liberal government has introduced several measures to tackle the housing crisis in the past two weeks, with the issue anticipated to be a focal point in the upcoming federal budget. This flurry of actions comes in response to soaring housing and rental costs, with Trudeau's Liberals aiming to address these challenges before an impending election
Trudeau stated to reporters in Vaughan, Ontario, that the plan will genuinely impact the lives of Canadians. Housing Minister Sean Fraser mentioned additional measures, such as modifying the capital-cost tax framework to incentivize institutional builders to increase home construction, extending low-cost loan options, and addressing mortgage fraud to prevent artificial inflation of housing prices.
Mike Moffatt from the Task Force for Housing and Climate, an independent think tank, mentioned that builders and stakeholders would require an investment of nearly CAD 2 trillion (USD 1.5 trillion) to reach the government's target of 3.9 million homes. Moffatt told the Canadian Broadcasting Corp that there's a need for more clarity on the calculations and costs, which he hopes to see in the budget. Nonetheless, he acknowledges significant reforms in the current package. The housing shortage has been exacerbated by the rapid growth in Canada;s immigrant population, leading to increased interest.
In Canada, housing is primarily managed by the 10 provinces and major municipalities. Ottawa, lacking direct involvement in construction, depends on policy interventions and financial support.
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