Canada’s housing plan needs a remodel: Senator Varone
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One of Canada’s greatest challenges is the escalating affordable housing crisis, primarily stemming from a significant supply and demand imbalance. The National Housing Strategy lacks the robustness necessary to effectively address this issue.
The demand for new housing throughout the country far exceeds the available supply, with an estimated need for 1.3 million additional homes beyond current projections. This imbalance leads to persistent upward price pressures, creating financial strain on Canadians, particularly first-time homebuyers. The resulting effects further limit rental availability and affordability, placing additional burdens on governments to create more affordable housing options.
The housing crisis continues to perpetuate socio-economic disparities. The intersection of housing affordability with issues such as mental health, addiction and poverty deepens the vulnerability of those marginalized groups experiencing homelessness. Indigenous communities, in particular, face specific challenges, such as inadequate living conditions, overcrowding and limited access to essential services.
Given the complexity and seriousness of the affordable housing crisis, we need a National Housing Strategy that can adapt to changing conditions and encourages collaboration between federal, provincial and municipal governments, while actively engaging the private sector.
Currently, Canada’s National Housing Strategy is falling short of its goals, often hindered by insufficient coordination among government entities and a lack of private sector involvement, which remains the most significant untapped opportunity throughout Canada. The National Housing Strategy must evolve into a cohesive plan that optimizes resource allocation, aligns policies and provides sustainable solutions to enhance the housing supply.
An updated National Housing Strategy must establish precise guidelines for how governments should co-ordinate their efforts on housing production and affordability. The inclusion of a national definition of “attainable homeownership” would help ensure that housing policies align across different levels of government and across the country. At present, governments are working at cross-purposes; they need a better blueprint on how to best work together.
Canada’s National Housing Strategy should also unshackle the private sector from the prohibitive costs of taxation in trying to increase the housing supply. Government taxation, in one form or another, constitutes more than 30% of the costs associated with new housing development. This figure represents the most significant obstacle to “attainable homeownership.” The federal government can adapt its National Housing Strategy to assume a more significant role in funding and developing sustainable rental housing options; yet, without a robust homeownership market, the crisis will only intensify.
Far too frequently, municipalities resort to development charges to relieve the financial burden of property taxes incurred from maintaining existing infrastructure unintentionally pushing new homebuyers further from affordability. While development charges fulfill a crucial role in addressing the costs associated with new developments, they must be targeted and structured in a manner that promotes rather than hinders affordability. Provincial oversight over municipal development charges will ensure that the development charges are purposeful and targeted.
The National Housing Strategy should incorporate mechanisms for collecting, analyzing and sharing data related to housing supply and affordability. Adopting a data-driven approach allows for informed decision-making, evidence-based policies and targeted interventions to address specific affordability challenges effectively.
In 2025, Canada’s housing landscape remains characterized by rising prices, limited availability, persistent homelessness and non-existent engagement from the private sector. While urban centres face acute issues, many rural, remote and Indigenous communities face barriers related to limited housing availability, high transportation costs and inadequate infrastructure.
If we are to improve these circumstances for low- and middle-income Canadians, it is imperative that all levels of government recognize and respect their roles in mitigating the housing crisis. Let’s build a Canada where homeownership is attainable.
Senator Toni Varone is a member of the Independent Senators Group and represents Ontario. Throughout his career, he participated in various community and government initiatives to create safe and affordable housing for those in need.
A version of this article was published in The Hill Times on January 29, 2025.
One of Canada’s greatest challenges is the escalating affordable housing crisis, primarily stemming from a significant supply and demand imbalance. The National Housing Strategy lacks the robustness necessary to effectively address this issue.
The demand for new housing throughout the country far exceeds the available supply, with an estimated need for 1.3 million additional homes beyond current projections. This imbalance leads to persistent upward price pressures, creating financial strain on Canadians, particularly first-time homebuyers. The resulting effects further limit rental availability and affordability, placing additional burdens on governments to create more affordable housing options.
The housing crisis continues to perpetuate socio-economic disparities. The intersection of housing affordability with issues such as mental health, addiction and poverty deepens the vulnerability of those marginalized groups experiencing homelessness. Indigenous communities, in particular, face specific challenges, such as inadequate living conditions, overcrowding and limited access to essential services.
Given the complexity and seriousness of the affordable housing crisis, we need a National Housing Strategy that can adapt to changing conditions and encourages collaboration between federal, provincial and municipal governments, while actively engaging the private sector.
Currently, Canada’s National Housing Strategy is falling short of its goals, often hindered by insufficient coordination among government entities and a lack of private sector involvement, which remains the most significant untapped opportunity throughout Canada. The National Housing Strategy must evolve into a cohesive plan that optimizes resource allocation, aligns policies and provides sustainable solutions to enhance the housing supply.
An updated National Housing Strategy must establish precise guidelines for how governments should co-ordinate their efforts on housing production and affordability. The inclusion of a national definition of “attainable homeownership” would help ensure that housing policies align across different levels of government and across the country. At present, governments are working at cross-purposes; they need a better blueprint on how to best work together.
Canada’s National Housing Strategy should also unshackle the private sector from the prohibitive costs of taxation in trying to increase the housing supply. Government taxation, in one form or another, constitutes more than 30% of the costs associated with new housing development. This figure represents the most significant obstacle to “attainable homeownership.” The federal government can adapt its National Housing Strategy to assume a more significant role in funding and developing sustainable rental housing options; yet, without a robust homeownership market, the crisis will only intensify.
Far too frequently, municipalities resort to development charges to relieve the financial burden of property taxes incurred from maintaining existing infrastructure unintentionally pushing new homebuyers further from affordability. While development charges fulfill a crucial role in addressing the costs associated with new developments, they must be targeted and structured in a manner that promotes rather than hinders affordability. Provincial oversight over municipal development charges will ensure that the development charges are purposeful and targeted.
The National Housing Strategy should incorporate mechanisms for collecting, analyzing and sharing data related to housing supply and affordability. Adopting a data-driven approach allows for informed decision-making, evidence-based policies and targeted interventions to address specific affordability challenges effectively.
In 2025, Canada’s housing landscape remains characterized by rising prices, limited availability, persistent homelessness and non-existent engagement from the private sector. While urban centres face acute issues, many rural, remote and Indigenous communities face barriers related to limited housing availability, high transportation costs and inadequate infrastructure.
If we are to improve these circumstances for low- and middle-income Canadians, it is imperative that all levels of government recognize and respect their roles in mitigating the housing crisis. Let’s build a Canada where homeownership is attainable.
Senator Toni Varone is a member of the Independent Senators Group and represents Ontario. Throughout his career, he participated in various community and government initiatives to create safe and affordable housing for those in need.
A version of this article was published in The Hill Times on January 29, 2025.