Almost there!
The Prime Minister is effectively waving the white flag when it comes to Canada’s massive housing shortage.
Speaking during a press conference – on housing ironically – Justin Trudeau said “housing isn’t a primary federal responsibility.”
As noted by John Pasalis – President & Broker of Recort at Realosophy Realty – the Liberals are now acting as if the housing market isn’t their problem despite having contributed to the unaffordability of the market:
https://twitter.com/JohnPasalis/status/1686087157230788608
Now, you may be asking why Trudeau is claiming housing isn’t a federal responsibility while he holds an announcement on housing.
And that’s a fair question.
Trudeau seems to want to have it both ways, by trying to get credit for ‘doing something’ about the shortage of homes, while absolving himself of responsibility for that shortage.
But that’s not how things work, and Canadians appear less and less likely to believe Trudeau’s spin on these issues.
Not quite enough
When looking at the substance of Trudeau’s announcement on housing, we can see that it falls just a little bit short of addressing Canada’s housing gap. According to the government, $64 million is being spent to build/repair 214 homes:
“The Prime Minister, Justin Trudeau, was joined today by the Mayor of Hamilton, Andrea Horwath, to announce a joint investment of nearly $64 million from the Government of Canada and the City of Hamilton to build and repair 214 homes for families in Hamilton, Ontario. This announcement builds on the 7,255 homes the federal government has invested to build and repair in Hamilton since 2015.”
Unfortunately, the CMHC says that at current rates of new housing construction, Canada needs 3.5 million more homes to be built by 2030 than are currently planned in order for affordability to be restored:
“If the current rates of new construction continue, we project that the housing stock will increase by 2.3 million units between 2021 and 2030. This will reach close to 19 million housing units by 2030.
To restore affordability, an additional 3.5M affordable housing units are needed by 2030
That means over 22 million housing units will be required by 2030 to help achieve housing affordability for everyone living in Canada. Delivering more housing supply, beyond predicted growth in the number of households, will enable better matching of households with the housing they want.”
What’s interesting about this is the Liberals are doing everything they can to try and appear to be taking action on an issue they claim isn’t a federal responsibility.
In their pre-selected quotes, both Justin Trudeau and Sean Fraser – the new Minister of Housing, Infrastructure, and Communities – sought to cast the announcement in Hamilton as a response to concerns about a lack of affordable housing:
Trudeau: “All across the country, I hear from Canadians that the cost of housing is a top concern – and that’s why we are rapidly investing to build more homes. Today’s investment to build and repair hundreds of homes in Hamilton will make housing more affordable, create good jobs for the middle class, and grow the economy.”
Fraser: “Every Canadian deserves a safe and affordable place to call home. Today, we are delighted to announce the funding of over 200 homes in Hamilton to support the needs of individuals and families. These homes are key to responding to the housing needs in Hamilton. This is one of the many ways the Government of Canada’s National Housing Strategy is ensuring that no one is left behind.”
The Liberals are even touting a “National Housing Strategy,” which certainly makes it seem like an area of federal responsibility.
Yet, given that the Liberal announcement amounts to just 0.006% of the new house construction Canada needs (and even that’s a bit generous since some of the homes in the announcement are being repaired rather than newly built), it’s strange to see them trying to hype it up.
Immigration is a federal responsibility
As noted above, Canada’s population is surging due to higher immigration levels. This is having an impact on housing prices, pushing those prices upwards. Immigration is a federal responsibility. The rapid population increases have taken place under the Trudeau Liberals.
Federal spending is also an area sole federal responsibility. Surging federal spending, combined with higher taxes that reduce productivity and make life even less affordable, have resulted in significant inflation, particularly of fixed assets like housing.
Thus, in two key ways, the Liberal government has made policy choices that are contributing to the immense unaffordability of the housing market and the growing shortage of homes.
Canada’s housing affordability crisis has also worsened dramatically under the Liberals. For them to attempt to blame others simply doesn’t hold up against the facts.
The Liberals are doing everything they can to deflect attention away from what Canadians can see all around us: Canada’s housing affordability crisis is getting worse and worse under the Trudeau government.
Spencer Fernando
Photo – YouTube
