Issue
Housing is an integral part of economic growth. The connections between affordable housing investment and economic growth have been well recognized in literature. And yet investment in affordable housing has been insufficient to meet demands. To ensure long-term community sustainability, local and regional economic development and growth plans must consider the role of affordable housing in the growing economy.
Background
Housing affordability and the housing supply challenge has been top of mind coast to coast. Housing is considered affordable when a household spends no more than 30% of its gross income on shelter.
The housing and homelessness crisis in Canada are serious and widespread, covering each province and territory, hitting everyone from the middle class to our most vulnerable residents. In Alberta, as of 2021 there were approximately 57,000 households in government-subsidized housing, and more than 24,000 households are waiting for suitable subsidized accommodation. In order to meet growing demand, Alberta will need to use a variety of tools to support another 25,000 households.
Recommendations
That the Government of Canada:
- Convene with provincial governments and municipalities to develop a cohesive strategy to address housing affordability, clearly defining roles and responsibilities, and how each will work in tandem with the others.
- Reduce costs for developers through grants and/or tax incentives to make affordable housing projects more economically sound.
- Gow the Canada Public Land Bank by evaluating additional federal real property holdings for affordable housing projects and develop a strategy for attracting the development of these projects.
- Reduce barriers to home buyers on housing that will be their primary residence.
- Reassess the criteria for the mortgage stress test.
- Support increased productivity, including modular and factory-built construction.
