The head of Canada’s housing agency says a plan to solve the country’s shortage of homes has yet to be completed.
“No there is not a plan,” said Romy Bowers, CEO of the Canada Mortgage and Housing Corporation (CMHC), while testifying before the Senate finance committee on Dec. 5.
“Is there any kind of overall plan which would indicate how the government is hoping to get to the 3.5 million deficit in homes?” asked Ms. Marshall.
The official replied that more time is needed to complete an assessment since it’s “very difficult” to estimate how many housing units can be built.
Ms. Marshall pressed: “I just need an answer; is there a plan yet?” Ms. Bowers said it wasn’t the case and that from her understanding the plan is in development.
“There are many factors that contribute to housing production including things like interest rate trajectories, the availability of skilled labour, local conditions that really impact housing delivery,” said Ms. Bowers.
Looking at the rates of new constructions at the time, the agency said Canada was on pace to increase its housing stock by 2.3 million up to 2030, reaching close to 19 million units. But this falls short of the 22 million units required to establish affordability.
The CHMC quoted its Deputy Chief Economist Aled ab Iorwerth as saying the country’s approach to housing supply needs to be “rethought.”
“There must be a drastic transformation of the housing sector, including government policies and processes, and an ‘all-hands-on-deck’ approach to increasing the supply of housing to meet demand,” said the report.
Sen. Marshall remarked in committee that the federal initiatives announced so far appear to be “piecemeal.”
The Liberal government has increased its focus on housing following a cabinet shuffle and retreat over the summer, as Conservatives have gained in the polls with a message centred on restoring affordability.
Announcements with municipalities around the Housing Accelerator Fund have been made in recent weeks and other measures have also been presented.
Ms. Bowers was before the Senate committee to address a cabinet proposal contained in Bill C-56 to remove the GST on new rental builds, a $920 million tax measure.
“Is there any assessment done now of that program as to what impact it is going to make?” asked Sen. Marshall.
“I don’t have the number,” said Ms. Bowers.
Finance Minister Chrystia Freeland appeared before the House of Commons finance committee on Dec. 7 and was asked to comment on what the CMHC head told senators two days prior about there being no plan to fill the housing gap.
“If your own housing agency has no faith in you, why should Canadians?” asked Conservative MP Jasraj Singh Hallan.
“You asked me to comment on the conservative scheme on housing, so let me do so,” replied Ms. Freeland, alluding to Mr. Hallan asking previously whether the minister had watched the viral Tory video on housing woes.
“I didn’t ask you to comment on that,” said Mr. Hallan before the committee burst into multiple points of order about Conservatives not letting Ms. Freeland answer and about Ms. Freeland not directly responding to questions.
Ms. Freeland had opened the committee meeting by highlighting her government’s work on housing, including providing $20 billion in financing to build rental apartments and the sale of federal land to build on.
“Our government has a real plan to build more homes faster across Canada. The Leader of the Opposition’s proposal would actually see fewer homes built across the country,” she said.
