Mon. Sep 25th, 2023
    Canadian Government Faces Uphill Battle to Resolve Affordable Housing Crisis

    Finance Minister Chrystia Freeland has acknowledged that resolving Canada’s affordable housing crisis will be a long-term challenge, even if construction levels reach an 80-year high. The government’s handling of the housing crisis has negatively impacted the popularity of Prime Minister Justin Trudeau’s Liberal administration, as polls show the party trailing behind their Conservative rivals who blame Ottawa for high inflation and soaring home prices.

    Responsibility for housing primarily lies with the provinces and major municipalities, with the federal government’s role limited to policy advice and financial incentives. Minister Freeland emphasized the need for collaboration between all stakeholders, including the federal government, provinces, cities, towns, private sector, and non-profit organizations, in addressing the crisis. She stressed that resolving the issue would require a sustained effort over several years.

    To increase housing supply, the government plans to eliminate the federal 5% Goods and Services Tax (GST) on the construction of new rental apartment buildings. Additionally, cities are being urged to take more action to tackle the crisis.

    The housing crisis in Canada has reached such a magnitude that it will require a national effort unparalleled since the 1940s and 1950s. However, the road to resolving this crisis will be a challenging one. Despite these challenges, the Canadian government is committed to finding solutions and working collaboratively with all stakeholders to ensure affordable and accessible housing for the growing population.

    Source: David Ljunggren, Canadian Financial Post