Condo construction is shown in Ajax, Ont., on November 30, 2023. THE CANADIAN PRESS
The Canadian government aims to utilize unused Canada Post and National Defence properties to address housing affordability, revealed in the recent federal budget. With a target of 3.87 million new homes by 2031, the plan intends to double housing construction efforts, addressing the growing demand for affordable housing.
Mike Moffatt, from the Smart Prosperity Institute, acknowledges the ambition but suggests it may not suffice. The Canadian Mortgage and Housing Corp. and the Parliamentary Budget Officer highlight the need for millions of new homes by 2030 to meet demand and restore affordability.
The government's strategy includes various measures, such as extending amortization periods, restricting foreign investment, and investing in fast-track construction. A significant aspect involves freeing up public land, notably from Canada Post and National Defence, for housing development.
Canada Post's vast portfolio of 1,700 post offices across the country offers potential for housing development, with six properties already under assessment. Similarly, National Defence's surplus properties, including 622 sites, are identified for housing development. The budget allocates funds for military housing renovations and new constructions.
To streamline land use, the budget proposes an overhaul of Canada Lands Co. to facilitate land transfers and provide low-cost leases for housing projects. The government emphasizes that increased land availability will lower housing costs, aiming for housing expenses not exceeding 30% of income.
However, escalating housing prices, particularly in major cities like Toronto and Vancouver, pose challenges for first-time buyers. To address rising rents and home prices, the government aims to boost rental housing construction through the Canada Builds initiative, leveraging existing programs and partnerships with provinces and territories.
The budget also underscores concerns about real estate speculation, emphasizing homes for Canadians rather than investment assets. Moffatt acknowledges the public sentiment and suggests addressing investor-driven demand alongside supply-side measures to ensure housing affordability for all Canadians.
