Mike Moffatt, founding director of the PLACE Centre, and the Trudeau Government discuss the federal housing crisis. They cover the shift to a national issue, government strategies, urban development challenges, long-term planning, and the impact of communication strategies on federal housing dialogues.
Population growth surpassing housing stocks since 2015, especially evident in Ontario, leading to increased housing demands. The pandemic further intensified the situation with lower interest rates and the desire for more living space. Despite expectations, housing prices did not adjust significantly even after interest rates normalized.
Canada's Unique Housing Pressures
Housing pressures in Canada are particularly acute in Ontario, BC, and starting with Alberta, stemming from global factors like interest rates and supply chain disruptions. While Saskatchewan faces similar housing cost challenges to the rest of the world, specific problems in other regions are more pronounced in Canada.
Government Response Focus on Demand Side Solutions
Historically, governments tend to address housing affordability by supporting first-time homebuyers with incentives like tax credits, overlooking the core issue of supply shortage. Recent policies include demand-focused approaches, such as aiding first-time buyers while restricting foreign buyers and house flippers.
Effectiveness of Federal Housing Policies
Federal initiatives such as eliminating GST on new apartment constructions have shown positive impacts but fall short of addressing all housing challenges. The introduction of measures like the National Housing Accord is a step forward, though more comprehensive actions are needed to adequately tackle the housing crisis.
Challenges in Housing Construction
The discussion shifts to municipal roles in housing construction and the efficacy of federal incentives linked to performance in increasing housing starts. The debate delves into rewarding cities for enhanced construction rates and penalizing those lagging behind, illustrating the complexities of housing development incentives.
Urban Development Changes Over Time
Governments and urban development policies have shifted from supporting sprawl to embracing density in inner cities. The evolution points to the need for strategic long-term planning to create viable housing solutions, requiring collaboration and foresight to balance urban growth and environmental considerations.
Assessing Housing Policy Impacts on the Middle Class
Despite political emphasis on assisting the middle class, housing policies have sometimes inadvertently limited middle-class options and affordability. The lack of a comprehensive and inclusive strategy addressing various housing challenges has led to discrepancies between stated goals and outcomes.
Government Communication Challenges
Modern communication strategies often prioritize presenting successes and steady progress, hindering open dialogue and critical discussions on pertinent issues like housing policy. The reluctance to acknowledge flaws or engage in constructive public conversations limits the effectiveness of policy formulation and implementation.
Calls for Long-Term Planning and Collaboration
Advocates emphasize the need for coordinated national planning to address long-term housing needs effectively. Urging governments to prioritize strategic initiatives over short-term fixes and engage in transparent dialogues with stakeholders to develop sustainable housing solutions for the future.
Societal Shifts and Policy Development
Societal changes, potentially influenced by modern communication trends, have impacted government communication and decision-making processes. The trend towards showcasing successes over engaging in substantial policy discussions has led to challenges in resolving complex issues like housing affordability.
Future Prospects for Housing Solutions
Forecasting ongoing housing challenges, experts anticipate sustained difficulties in addressing housing needs due to insufficient policy responses. The evolving landscape demands a comprehensive approach balancing supply and demand considerations to achieve sustainable housing outcomes for Canadians.
Reflections on Government Planning Dynamics
Exploring the shift in government planning approaches towards short-term fixes over comprehensive strategies, highlighting the need for strategic foresight and concerted efforts to overcome housing affordability challenges. The discussion underscores the importance of collaborative, forward-thinking policies to address complex societal issues effectively.
Housing policy has become one of the main debates among federal political parties. It wasn’t always this way, even as house prices were getting out of control. So why exactly did the housing crisis become such a prominent issue on the national stage? And can the federal government solve it?
Mike Moffatt keeps a close watch on housing policy, and has advised the Trudeau Government on the issue. He is the founding director of the PLACE Centre at the Smart Prosperity Institute, and an assistant professor at Western University’s Ivey Business School. He shares his thoughts on the debate over housing playing out in Parliament.
Get the Snipd podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share & Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
