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RBC Economics and Thought Leadership recently published a report titled "The Great Rebuild: Seven ways to fix Canada’s housing shortage," delving into the roots of Canada's housing crisis and presenting policy suggestions to tackle it. Their research highlights a looming issue: by 2030, around one million out of 1.9 million new households may struggle to afford homes if current affordability levels persist. Moreover, over 40% of these households are projected to face challenges in meeting market rent prices. Assistant Chief Economist Robert Hogue emphasizes that the crisis stems from a severe undersupply of housing against surging demand, emphasizing the urgent need for Canada to rapidly expand its housing stock, particularly in rental and affordable housing segments. He stresses the necessity for collaborative efforts among governments, industries, and other stakeholders to address this pressing challenge effectively.
The report outlines seven actionable strategies aimed at alleviating the housing shortage and mitigating the burden of home prices and rents. These measures include initiatives to bolster the construction sector's workforce by tapping into immigrant skills, embracing innovative building techniques to enhance productivity, and expediting housing project approvals by streamlining regulations and codes. Furthermore, it advocates for easing zoning restrictions to foster urban density and diversify housing types, reducing construction costs through efficient materials and government charges modulation, and incentivizing the development of purpose-built apartments through waivers on development charges and leveraging publicly owned land. Additionally, the report suggests expanding the housing stock internally by repurposing units from short-term rentals, facilitating the construction of secondary suites, and converting non-residential buildings into residential spaces.
John Stackhouse, SVP in the Office of the CEO at RBC, emphasizes the necessity for comprehensive efforts involving homeowners, builders, and policymakers to safeguard home ownership as an integral part of the Canadian dream. He underscores the need for proactive measures beyond existing approaches, expressing hope that the pragmatic ideas proposed in the report will help rebalance the housing supply and demand dynamics, thereby sustaining Canadian prosperity.
Read the full article on: REAL ESTATE MAGAZINE
