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Opinion: The establishment of a national housing secretariat could be the answer to effective housing policy development
Published on November 21, 2024 • 3 minutes reading time
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Housing is not just a national crisis; For Canadians, it is a deeply personal matter. Behind every proposed solution is the desire for stability and a place to call home, whether it's a young family looking for their first home or a senior looking to downsize while maintaining their independence .
Because real estate agents work with Canadians from all walks of life and from all walks of life, they have a unique perspective on the challenges and needs of Canada's diverse housing markets. With their insights and expertise, they understand and advocate for meaningful and actionable recommendations that can make a significant difference in addressing the housing crisis. There are three suggestions that real estate agents believe will have a real and immediate impact.
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First, we will not be able to address our national housing shortage using today's traditional local construction practices alone. Rapid construction should be a priority to boost supply across the housing continuum.
A promising path forward is the wider adoption of innovations through external building technologies such as mass timber, panelization and modular home construction. Not only can these technologies be completed 20 to 50 percent faster, but once manufacturing, operational and capital costs are scaled, the unit cost of housing could be lower than traditional housing.
We believe scaling can be fostered by providing contracts, loans and support to manufacturers, as well as incentivizing developers and early adopters through funding streams such as the Housing Accelerator Fund and the Homebuilding Technology and Innovation Fund.
Second, while there is no lack of goodwill to address Canada's housing problems, the lack of coordination and collaboration between all levels of government is further exacerbating the crisis. The consequences go beyond individual impacts; They impact the country's overall economy and social fabric.
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Policymakers at all levels of government, housing stakeholders as well as civil society and indigenous organizations cannot work in silos and expect coherent results. We believe that the establishment of a national housing secretariat is the answer to effective housing policy development.
Addressing our housing crisis requires a permanent mechanism that enables a long-term, continuous, multi-faceted, inclusive and collaborative approach to significantly increase supply. Following the successful Secretariat model of the Federal Secretariat for Early Learning and Child Care, a Housing Secretariat could provide the framework, support and resources needed to address affordability challenges, coordinate policy and build the housing supply that Canada needed.
A National Housing Secretariat would be an inclusive, holistic, innovative and coordinated approach to developing short-term measures and long-term strategies to address the country's housing crisis.
Third, when we talk about increasing housing supply across the “housing continuum,” we mean all forms of housing, from emergency shelters and shared housing to rental housing and home ownership.
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Between Conservative leader Pierre Poilievre's announcement two weeks ago to eliminate the GST on newly built homes (costing less than $1 million) and last year's announcement by the federal government to introduce an HST/GST exemption for purpose-built rental housing and student housing , long-term senior rentals and cooperative housing, there appears to be a clear understanding of the impact of eliminating HST/GST from certain types of housing.
Yet affordable housing units provided by nonprofits like Habitat for Humanity are still taxed the same as other newly built homes, even if they are intended for lower-income families.
According to Habitat for Humanity, extending HST/GST relief to affordable condominiums could enable the construction of 13 additional homes for every 100 homes currently delivered, significantly expanding the capacity to address Canada's affordable housing shortage. The government could address this oversight by offering a 100 percent rebate or exemption from paying HST/GST for new homes built by organizations such as Habitat for Humanity.
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As Canada's population grows, demand for housing continues to outpace new construction and available inventory. The above recommendations are not an exclusive roadmap to address the entire housing crisis. They do not even reflect the totality of our work to draw attention to its many facets. But they are a productive step towards ensuring an innovative, inclusive and coordinated approach. Agents work every day to help their clients find a home. To help make this future a reality for all Canadians, now is the time to act on our recommendations.
Janice Myers is executive director of the Canadian Real Estate Association.
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