Implementing the first four Action Areas will make housing more affordable:
Building in the right places keeps construction costs and municipal taxes lower because there is no need to build expensive infrastructure like roads and sewers on farmland and natural areas.
Building a choice of housing types and sizes will make more affordable and appropriate options available.
Building smarter and faster reduces construction costs and helps with sustainability.
Building non-market housing lowers rents for those who need it the most.
But, too many people living in already-built housing are paying rents or mortgages that are increasingly unaffordable. They also need help.
A big challenge facing both renters and potential new owners is the fact that housing has become a commodity, like fine art, that is bought and sold by large investors looking to maximize their profits.
For potential homeowners this “financialization of housing” means they are often in a bidding war with wealthy investors. In the past, this happened mostly with high-rise condos. Now, it’s increasingly happening with houses. Prices are being driven up as investors bid higher, knowing they can make money charging higher rents, flipping the property, or demolishing the existing structure to build a new, higher-priced property. And that leads to unaffordable prices for new homeowners.
For renters, this means rental buildings are purchased by large investor groups that only look to maximize profits, regardless of the impact on tenants.
Of course, private investors want to make money providing housing. For example, a homeowner who renovates their single-family home to create multi-unit housing is entitled to make a profit for their efforts. These small-scale investors should be rewarded with updated tax laws that recognize their role in providing important housing, and also ensure that investors who treat housing as nothing more than an investment are not allowed to make unlimited profits.
Another way to ensure affordability is to update the rules that govern renters and landlords, because they aren’t working. Rents keep going up and disputes between renters and landlords are increasing. Both unscrupulous landlords and tenants take advantage of the rules for selfish reasons. The Province needs to update its landlord and tenants laws to ensure landlords can earn reasonable profits and tenants have access to affordable rents.
Finally, it’s important to ensure we can all live in housing that is part of liveable neighbourhoods. As density increases, we need to ensure there are enough schools, shops, grocery stores, cultural activities, and community and social services close by. We also need to ensure there are adequate green spaces available for families and pets to play in.
Update landlord and tenant protection laws to ensure timely and fair resolution of disputes, affordable rents, and no abuse by unscrupulous parties.
Update planning laws and infrastructure programs so that municipalities can provide adequate schools, green spaces, and community and social services.
Take the actions listed above to build housing in the right places, build to maximize choice, build smarter and faster, and create non-market housing.
Institute higher (flipping) tax rates for short-term ownership (with legitimate exceptions).
Prohibit corporate acquisitions of single-detached and semi-detached houses.
Make it easier for non-profit housing providers and co-ops to purchase affordable housing units that are for sale.
