The CEO of Canada Mortgage and Housing Corporation (CMHC) stated on Tuesday that the cabinet does not have a plan to address the housing crisis.“There is not a plan,” Bowers testified at the Senate National Finance committee.“There are many factors that contribute to housing production, including things like interest rate trajectories, the availability of skilled labour, local conditions that really impact housing delivery,” said Bowers.According to Blacklock’s Reporter, Canada requires 3,500,000 homes by 2030 in addition to current construction levels to restore housing affordability, according to a 2022 CMHC report Canada’s Housing Supply Shortages: Estimating What is Needed to Solve Canada’s Housing Affordability Crisis by 2030. Bowers said the target is unchanged.“Is there any kind of overall plan which would indicate how the government is hoping to get to the 3.5 million deficit in homes?” asked Senator Elizabeth Marshall (NL). “We need more time to do the assessment because it is very difficult to estimate the number of housing units that will be created,” replied Bowers.“I just need an answer; is there a plan yet?” asked Marshall. “No, there is not a plan,” replied Bowers. “My understanding is it’s in development.”Marshall told the Finance committee that the federal housing initiatives that have been announced so far seemed disconnected, lacking specific data on their costs or benefits.“We know there’s a 3.5 million deficit at the end of seven years,” said Marshall. “It just seems like things are being done on a piecemeal basis.”This testimony was provided as part of a review of a cabinet proposal to grant builders an estimated $920 million annual GST holiday for new purpose-built rental apartments.“Is there any assessment done now of that program as to what impact it is going to make?” asked Marshall. “I don’t have the number,” replied Bowers.“You don’t have the number yet?” asked Marshall. “We don’t,” replied Bowers.Building an additional 3.5 million homes alongside the current average of 244,000 housing starts per year would require building over 700,000 units annually. Canada has never constructed more than 273,200 homes in a single year. According to CMHC, this ambitious construction target would come with an estimated cost of $1 trillion.On Tuesday, Senator Tony Loffreda (QC), former vice chair of the Royal Bank, stated that the construction industry should not be held responsible for housing shortages.“We talk about the lack of housing supply,” Loffreda told the Finance committee. “When I talk to builders, they tell me they can build as much as needed.”On Tuesday, Housing Minister Sean Fraser stated that the cabinet continues to be dedicated to addressing and eliminating housing shortages.“We cannot afford to make the mistakes of the past and get out of the housing game,” Fraser told reporters. “It is clear there are real concerns around people’s inability to find a place to live.”
The CEO of Canada Mortgage and Housing Corporation (CMHC) stated on Tuesday that the cabinet does not have a plan to address the housing crisis.“There is not a plan,” Bowers testified at the Senate National Finance committee.“There are many factors that contribute to housing production, including things like interest rate trajectories, the availability of skilled labour, local conditions that really impact housing delivery,” said Bowers.According to Blacklock’s Reporter, Canada requires 3,500,000 homes by 2030 in addition to current construction levels to restore housing affordability, according to a 2022 CMHC report Canada’s Housing Supply Shortages: Estimating What is Needed to Solve Canada’s Housing Affordability Crisis by 2030. Bowers said the target is unchanged.“Is there any kind of overall plan which would indicate how the government is hoping to get to the 3.5 million deficit in homes?” asked Senator Elizabeth Marshall (NL). “We need more time to do the assessment because it is very difficult to estimate the number of housing units that will be created,” replied Bowers.“I just need an answer; is there a plan yet?” asked Marshall. “No, there is not a plan,” replied Bowers. “My understanding is it’s in development.”Marshall told the Finance committee that the federal housing initiatives that have been announced so far seemed disconnected, lacking specific data on their costs or benefits.“We know there’s a 3.5 million deficit at the end of seven years,” said Marshall. “It just seems like things are being done on a piecemeal basis.”This testimony was provided as part of a review of a cabinet proposal to grant builders an estimated $920 million annual GST holiday for new purpose-built rental apartments.“Is there any assessment done now of that program as to what impact it is going to make?” asked Marshall. “I don’t have the number,” replied Bowers.“You don’t have the number yet?” asked Marshall. “We don’t,” replied Bowers.Building an additional 3.5 million homes alongside the current average of 244,000 housing starts per year would require building over 700,000 units annually. Canada has never constructed more than 273,200 homes in a single year. According to CMHC, this ambitious construction target would come with an estimated cost of $1 trillion.On Tuesday, Senator Tony Loffreda (QC), former vice chair of the Royal Bank, stated that the construction industry should not be held responsible for housing shortages.“We talk about the lack of housing supply,” Loffreda told the Finance committee. “When I talk to builders, they tell me they can build as much as needed.”On Tuesday, Housing Minister Sean Fraser stated that the cabinet continues to be dedicated to addressing and eliminating housing shortages.“We cannot afford to make the mistakes of the past and get out of the housing game,” Fraser told reporters. “It is clear there are real concerns around people’s inability to find a place to live.”
