A Massive Shortage of Housing
At the end of June, the Canada Mortgage and Housing Corp. (CMHC) released projections that indicate Ontario’s goal to build 1.5-million homes in the next decade is nowhere near enough to keep pace with the population growth rate.
If construction continues at current levels, by 2030, Ontario will fall 1.85-million homes short of the figure necessary to lower prices to 2003-04 levels, according to the CMHC. The average cost of a house in 2003-04 was $500’000, which pales compared to the staggering $871’000 average price in 2021.
In response to the report, Ontario Premier Doug Ford claimed that lack of supply is one of the critical factors for the ongoing housing crisis. He is looking for vacant or surplus lots owned by the government to help mitigate the problem. Speaking alongside Toronto Mayor John Tory, Ford said all governments need to do more and work collaboratively. Mayor Tory says with the support of the Ontario government, the City of Toronto has no choice but to identify new solutions to accommodate the 70’000 residents that move to Toronto annually.
Housing legislation enacted by the government shortly before the election contains measures to streamline approval processes. However, the legislation lacks key steps that advocates, and critics have long urged, such as zoning changes to allow higher density within designated neighborhoods. Steve Clark, the Municipal Affairs and Housing Minister, claim that the measures are absent from the legislation because municipalities have told the government that they are not ready for them.
According to the CMHC, the report does not delve deep enough into issues such as social housing, the impact of the income distribution, and what types of accommodation are required for urban centers. It states that further research into these areas is needed.
Critics Demand More Action, Fewer Reports
For more information on the CMHC’s projections for Ontario and what the province can do about it, go to CBC.ca:
“But critics say many of the solutions, ranging from ending exclusionary zoning to allowing ‘as of right’ developments, lie in reforming the NIMBYism housing culture and implementing the recommendations released by the Housing Affordability Task Force (HATF) in February. The political will to act on those is needed, they say.
‘We don't need more reports,’ said Mark Richardson, the technical lead for volunteer group Housing NowTO. ‘We need more housing, and there's a bureaucratic and political preference to kick the can just a little bit further down the road.’
Both Richardson and Dawang say residents' associations that campaign against big projects that would add density to single-family neighborhoods, and politicians who cater to those groups for votes, are still some of the biggest obstacles to housing reform in Ontario.
David Hulchanski, a housing and community development professor at the University of Toronto, says these types of analyses and acknowledgements are more important than ever to get to the root of the housing crisis — especially if governments and experts insist on tackling this issue by mainly increasing supply.
But he says the report fails to address the underpinnings of the market such as housing speculation, lost supply due to short-term rentals, multiple property ownership, tax evasion and money laundering in real estate, and the financing structure in housing.”
From After Grim Housing Affordability Report, Critics Look to Doug Ford's Government for A Plan - CBC
Photo Source: WIX (www.wix.com)
What solutions do you think Doug Ford’s government should consider acting on immediately?
Written by S2A Modular & Associates Inc.
June 28th, 2022