Large Urban Centre Alliance Presents Recommendations to Address Canada's Housing Crisis

Strategic Insights -

The Large Urban Centre Alliance, representing home builders and rental providers from cities accounting for over 50% of Canada's annual housing starts, has submitted a set of recommendations to the federal government to address the current housing crisis. Dr. Mike Moffatt, Founding Director of the Missing Middle Initiative, highlighted the need to double housing starts to address the shortage, yet housing starts and sales are falling due to the cost of building homes making homebuilding unviable. The economic consequences are substantial, with 41,000 jobs at risk and over $6 billion in tax revenue per year at stake in the Greater Toronto Area alone.

Key Takeaways:

  • The Large Urban Centre Alliance has submitted a suite of recommendations to the federal government to address the current housing crisis, prioritizing four urgent actions to increase housing starts and ensure long-term housing affordability and supply.
  • The Alliance's recommendations focus on providing a temporary three-year expansion to the rebate of 100% of the GST/HST on new homes, protecting consumers from unnecessary costs and double taxation, and ensuring CMHC's Apartment Construction Loan Program is sufficiently capitalized to meet growing demand.
  • The federal government has an ambitious vision for tackling the housing crisis, and these recommendations support and strengthen that vision by ensuring the long-term resilience of Canada's housing market.
  • New home sales in the Greater Toronto Area have all but evaporated, with a 89% decline in sales relative to 2022, and other large markets, such as Calgary, Edmonton, and Montreal, remain vulnerable to similar pressures.
  • The industry has come to a virtual standstill, with new home construction expected to remain exceptionally low in affected markets for the foreseeable future.

Statistics:

  • Over 50% of Canada's annual housing starts are represented by the cities involved in the Large Urban Centre Alliance.
  • 41,000 jobs are at risk in the Greater Toronto Area alone, along with over $6 billion in tax revenue per year.
  • New home sales in the Greater Toronto Area have declined by 89% relative to 2022.
  • New home construction is expected to remain exceptionally low in affected markets for the foreseeable future.
  • The Apartment Construction Loan Program (ACLP) is essential to meet growing demand.

Sources:

  • The Globe and Mail
  • The Large Urban Centre Alliance
  • The Missing Middle Initiative
  • The Building Industry and Land Development Association (BILD)
  • Janis McCulloch, jmcculloch@bildgta.ca (416-617-7994)