While the federal government’s fall economic statement is a “step in the right direction” more action is needed to tackle the housing crisis, says the Residential Construction Council of Ontario (RESCON).
“Billion-dollar fixes are being proposed, but the housing supply crisis and affordability issue is a trillion-dollar problem, as noted by the CMHC,” said RESCON president Richard Lyall. “We are encouraged that housing is a main focus of the feds but there are still many impediments that were not addressed such as the enormous infrastructure funding gap faced by municipalities that impedes new home construction.
“We need a Marshall plan-styled strategy with respect to the chronic housing supply shortfall.”
Announcing $15 billion in new loan funding for builders of rental properties and $1 billion to support the building of affordable housing, is good news, Lyall added, however, many impediments to housing construction were not addressed, such as reducing taxes associated with purchasing a home and the unacceptably long approvals process that builders must endure when starting a project.
“These measures are commendable as they will have a positive impact on homeowners who are looking at hefty increases in their mortgage payments,” Lyall said. “We are also encouraged at measures to spur rental housing construction by offering builders loans that have favourable terms.
Also, to solve the housing crisis, the federal government must address the infrastructure funding gap faced by municipalities across the country.
“The federal government is uniquely positioned to take action on these issues and bring down the cost of rental and ownership housing,” Lyall said. “It is imperative that the feds step up to the plate and do what is right to make housing more affordable for Canadians.
“RESCON will continue to press for more expansive and impactful policy and funding measures.”