Build Canada Homes was launched a year ago.
asserted
Homes → launch → ?
Can it scale up fast enough to meet demand?
asserted
it → scale → demand
Of the 19,000 units slated for construction, only about 2,000 are currently being built
A little more than a year ago, Prime Minister Mark Carney stood in Ottawa in front of a backdrop of partly constructed, prefabricated houses to announce the launch of Build Canada Homes, the federal government's initiative to tackle the housing crisis and speed up residential construction.
asserted
Carney → slat → construction
The agency promises to scale up the delivery of affordable housing at a time when industry leaders are raising the alarm about the lagging pace of housing development across the country.
asserted
leaders → promise → country
So far, Build Canada Homes has committed to supporting the construction of roughly 19,000 affordable units across the country — only about 2,000 of these are currently being built.
asserted
2,000 → commit → these
"I think we can always go faster," Dave Wilkes, president and CEO of the Building Industry and Land Development Association based in Toronto, said in an interview.
asserted
Wilkes → think → interview
"I like to say I work for an industry that measures patience in terms of seconds."
asserted
that → like → seconds
To be fair, the federal housing agency did only become a Crown corporation in July, shortly after the Build Canada Homes Act received royal assent.
asserted
Act → become → assent
A large portion of the past year has been spent clearing bureaucratic hurdles, securing land transfers and signing intergovernmental deals.
asserted
portion → spend → deals
"This is just the beginning," Build Canada Homes spokesperson Joshua Coke told CBC News in an emailed response to questions.
asserted
Coke → tell → questions
"Canada's housing sector is under unprecedented pressure, with demand for affordable homes far exceeding current supply."
asserted
demand → exceed → supply
The housing agency primarily focuses on building non-market housing, where rents are typically linked to income rather than market rates, but it is also partnering with developers to build affordable homes for Canada's middle class.
asserted
it → focus → class
"Combatting this housing affordability challenge requires more homes to be built, more quickly, and at greater scale," Coke added.
asserted
Coke → combat → scale
Ottawa's long absence from housing market
Kevin Fettig, president of CMI Financial, a mortgage lending and investment company, points out that the Canadian government — under both Conservatives and Liberals — effectively stopped funding and building new affordable housing for roughly three decades.
asserted
government → point → decades
In the late '80s and early '90s, federal debt was ballooning as governments repeatedly ran deficits.
asserted
governments → balloon → deficits
Fettig, who worked on monetary policy for the Bank of Canada during that time, says home prices had skyrocketed, which pushed the central bank to increase interest rates.
asserted
which → work → rates
"We saw mortgages at 14 per cent, so there were high defaults in that period."
asserted
We → see → period
Shifting fiscal priorities saw Ottawa reduce spending on housing initiatives, cut the federal co-operative housing program and eventually pull the plug on building any new affordable housing units altogether.
asserted
Ottawa → shift → units
"They basically decided to not finance that area anymore," Fettig said.
asserted
Fettig → decide → area
It sort of crept up on us."
asserted
It → creep → us
Federal Housing Minister Gregor Robertson agrees that Ottawa had been absent from the housing affordability picture for a long time.
asserted
Ottawa → agree → time
We're changing that now," Robertson said in an interview.
asserted
Robertson → change → interview
Fettig believes the approach of Build Canada Homes, providing tools to builders, developers and community partners to speed up residential projects, will yield positive results over time.
"It's hard to fill that gap in a hurry.
asserted
It → believe → hurry
We're on the right track, but it's going to be, more than anything, a question of time and effort and financing to get there," Fettig said.
asserted
Fettig → go → time
Significant supply gap
Even the market-priced segment is lagging.
asserted
segment → price → ?
Over the past two years, housing starts have hovered around 250,000 annually, according to the Canada Mortgage and Housing Corporation (CMHC).
uncertain
starts → hover → Corporation
"We still need to keep doubling the pace of current housing starts if we are to restore 2019 affordability across the country," CMHC chief economist Mathieu Laberge said.
asserted
Laberge → need → country
In its latest report, CMHC says roughly 417,000 to 469,000 units must be built every year by 2036 to reach that goal.
asserted
units → say → goal
That supply gap is "putting future affordability at risk," according to Laberge.
uncertain
gap → put → Laberge
He notes a significant "pent-up demand" from younger Canadians and newcomers.
asserted
He → note → Canadians
Even though non-market housing represents about five per cent of overall residential construction, Laberge says the entire housing spectrum is needed to address the ongoing affordability challenges.
asserted
spectrum → represent → challenges
Wilkes from the Building Industry and Land Development Association says the HST rebate and reduction in development charges in Ontario helped recalibrate some of the country's most overheated housing markets, such as Toronto and its surrounding suburbs.
asserted
rebate → say → Toronto
"The combination of people not having to pay as much because of the HST [rebate on new homes] and builders being able to make sense of the numbers, we are seeing more and more supply come," he said.
asserted
he → have → numbers
Last month, Ottawa announced a partnership with the government of Alberta to build at least 1,460 affordable apartments and townhouses through Build Canada Homes — a new supply that's "much needed here in this province that's growing very fast," the federal housing minister said.
asserted
minister → announce → province
When asked for more information on the planned developments in Alberta, Build Canada Homes said in a statement "it is not in a position to share details regarding individual projects under consideration at this time," including details about location, affordability mix or timelines.
asserted
it → ask → location
Part of the new Crown corporation's mandate is to promote modern methods of construction, such as modular, factory-built, panelized and prefabricated housing, which can help shorten construction timelines.
asserted
which → promote → timelines
"We're doing everything we can to modernize the industry and make sure that we can build faster and more affordably," Robertson said.
asserted
Robertson → do → industry
The Aporia
