In response to the escalating housing affordability crisis in Canada, the government is set to revive a post-World War II strategy, aiming to expedite and economize home construction. Housing Minister Sean Fraser announced that public consultations on this strategy, previously employed in the 1950s to 1970s, will commence in January.
Canada’s housing supply has struggled to keep pace with the population growth fueled by immigration, exacerbating affordability issues, especially during the COVID-19 pandemic. Housing prices surged due to high demand amid low borrowing costs.
Prime Minister Justin Trudeau’s Liberal government, confronted by criticism from Opposition Conservative Party leader Pierre Poilievre, has prioritized housing as a top concern. Trudeau’s government has unveiled several measures, including converting federal properties into new homes by March and identifying additional public buildings for conversion.
Last month, Ottawa introduced tax measures targeting the severe rental housing shortage by limiting income tax deductions on short-term rentals like Airbnb and VRBO.
The housing agency projects that, at current construction rates, the housing stock will increase to nearly 19 million units by 2030. However, an additional 3.5 million units are deemed necessary by that time to restore affordability.
Housing Minister Sean Fraser emphasized that the streamlined catalogue of pre-approved designs aims to reduce time and costs in the construction process. The proposal covers designs for multiplexes, mid-rise buildings, student housing, seniors’ residences, and other small to medium-scale residential properties. Public consultations will determine the estimate of units that could be built under this proposal.
The pre-approved construction will align with existing building codes and prioritize designs that reduce power bills. Builders will still have the flexibility to construct houses using their designs.
