ottawa –
Housing Minister Sean Fraser said Canadians can expect to see a full plan from the federal government in 2024 setting out how to address the housing crisis.
“We are in the process of developing a plan to bring Canadians together in one place to see a new approach across the board, with the measures we have announced and the next steps we will announce,” Fraser said in a year-end interview. We are working on it,” he said. Canadian Press.
The plan builds on the Liberal Party’s recently announced housing policy, which includes the removal of GST levies on rental developments, increased amounts of low-cost financing available to developers and the start of consultations on the creation of a catalog of pre-approved housing blueprints. This will include speeding up of things like this. Project approval.
The housing minister is also traveling around the country to sign agreements with local governments as part of the Housing Promotion Fund, a program that provides federal money in exchange for changes to ordinances and regulations that encourage housing construction.
Looking ahead, Mr Fraser said his next plan would set out measures to reduce cost pressures on housebuilding and outline an industrial strategy to boost productivity.
Support will also be provided to those with the most acute housing needs, he added.
The Liberal government’s renewed focus on housing comes as it seeks to win back support from Canadians on the issue of affordability.
Housing affordability has become a major issue in federal politics, with Conservatives criticizing the Liberals for soaring rent and mortgage payments.
The Conservatives are proposing requiring large cities like Vancouver to increase housing construction by 15 per cent each year or face penalties, including withholding federal funding. On the other hand, cities that promote housing construction will be given a “construction bonus.”
The Conservatives would also require cities to pre-approve building permits on available land near transit stations to be eligible for federal funding.
The New Democrats are backing the minority government in key votes in the House of Commons in exchange for moves on priorities outlined in last year’s deal, including a housing promotion fund.
The NDP, which is pushing for a major boost in affordable housing, also credits the government with providing a one-time rental surcharge this fall and removing GST from new rental homes.
Ottawa warns of migrant surge
The Liberal Party’s recent steps were inspired by recommendations received from a range of housing stakeholders, experts and advocates.
However, a major unaddressed issue regarding housing affordability is the rapid pace of population growth in the country.
The Liberal government is sounding the alarm as a growing number of experts say the pace of immigration is exacerbating the housing shortage.
Statistics Canada recently reported that the country’s population grew by more than 430,000 people in the third quarter, largely due to a surge in temporary residents. This was the fastest pace of population growth in any quarter since 1957.
The agency said population growth in the first nine months of 2023 has already exceeded the total growth for any other full year, including the record set in 2022.
Earlier this month, Bank of Canada Deputy Governor Toni Gravel spoke specifically about the impact of immigration on the economy and inflation.
He warned that rapid population growth is putting pressure on the housing market, which is fraught with challenges such as zoning restrictions and a shortage of construction workers.
“Surges in demographic demand, coupled with existing structural supply issues, may explain why rent inflation continues to rise in Canada,” Gravel told the Windsor-Essex Regional Chamber of Commerce. said.
“This also helps partially explain why house prices haven’t fallen as much as we expected.”
Canada sees a rapid increase in the number of temporary returnees
In a year-end interview with Global News, Prime Minister Justin Trudeau acknowledged the need for the federal government to address this increase in temporary immigration.
“Over the past two years, the number of temporary visitors has increased rapidly, to a total of more than 2 million people, and we need to take action,” Prime Minister Trudeau said.
Canada has a cap on the number of people granted permanent residency each year, but there is no limit for international students and temporary foreign worker programs.
In October, Immigration Minister Mark Miller announced new rules to curb fraud in international student programs. He also warned that if states do not meet their obligations, the federal government stands ready to crack down on questionable higher education institutions that recruit international students.
These days, Miller doubles the financial requirements for applicants, meaning they must prove they have more than $20,000 to cover tuition and travel expenses.
Fraser acknowledged that both the international student program and the temporary foreign worker program provide economic benefits, but need to be balanced against housing needs.
“We can work with state governments, agencies and employers to strengthen requirements around temporary housing and other provision,” Fraser said.
He also proposed tightening rules for companies to use temporary workers.
Fraser also said that if states are unable to successfully control the influx of international students, the government “should reserve the right to take further action as necessary”.
This report by The Canadian Press was first published Dec. 29, 2023.
