Everyone, including young Canadians, deserves an affordable place to live so we can look to our future with confidence. A new National Prosperity Partnership will ensure local governments have long-term, predictable funding to expand and maintain the infrastructure needed for new homes.
Housing affordability is a critical issue in Canada, with 44% of Canadians citing it as their biggest worry and more than 1.5 million Canadians spending over 30% of their income on housing. An entire generation feels locked out of home ownership. Across Canada municipalities have stepped up to tackle this crisis by streamlining development approvals and speeding up housing permits, but homes cannot be built without the municipal infrastructure that underpins them. Communities across Canada are struggling to keep up with the costs of servicing land and building housing-enabling infrastructure.
Let’s tackle housing affordability together to:
- Expand municipal infrastructure: Building homes requires robust municipal infrastructure. We need to modernize municipal finances to ensure stable funding to expand the capacity of essential municipal services. On average, every new home needs an investment of $107,000 in municipal infrastructure, covering everything from roads, pipes and water treatment plants, to fire halls, community centers and more.
- Stimulate housing construction: The federal government can play a pivotal role in reducing housing costs and encouraging all types of housing construction. Removing the GST on housing construction, including secondary suites and student housing, would lower costs and spur more development.
- Overcome rural housing challenges: In rural areas, construction costs per unit are high due to lower economies of scale. Federal support for the prefabricated housing sector can help address both rural and urban housing shortages and create more affordable options.
- Expand non-profit housing: Increasing the supply of new homes won't solve the crisis alone. Canada must boost non-profit housing, including co-ops and social housing, for low-income Canadians. Currently, non-profit housing represents only 3.5% of our total housing stock, half the OECD average, but it's a key part of the solution.
As part of a National Prosperity Partnership, municipalities are ready to work with the federal government and with the provinces and territories to address the pressing issue of housing affordability in Canada. Together, we can ensure affordable, stable housing for all Canadians.
