RBC proposes seven strategies to address the housing shortage, aiming to make home ownership attainable again
Housing, a central issue for Canadians marked by growing challenges and financial strains, is facing an urgent demand for solutions.
RBC Economics and Thought Leadership recently published ‘The Great Rebuild: Seven ways to fix Canada's housing shortage,’ a report highlighting the roots of Canada's housing crisis and proposing policy measures to mitigate it.
RBC's analysis indicates a dire outlook, projecting that by 2030, over half of the 1.9 million new Canadian households will be unable to afford home ownership if current affordability trends persist. Alarmingly, more than 40 percent of these households will also struggle to afford market rent.
Robert Hogue, assistant chief economist at RBC Economics, points out that a significant imbalance between housing supply and demand, exacerbated by insufficient housing stock, underlies the current affordability crisis.
Hogue emphasizes the necessity for Canada to expand its housing inventory, particularly in the rental and affordable segments, urging swift action and collaboration among governments, industry, and stakeholders.
The report proposes seven strategic actions aimed at addressing the housing shortage effectively:
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Enhance the construction sector's workforce through immigration policy adjustments, credential recognition, and ambitious trade enrollment targets.
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Adopt innovative construction methods, including prefabricated housing and pre-approved designs, to increase productivity.
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Streamline housing project approvals by simplifying regulations, standardizing building codes, and focusing on projects with quick completion timelines.
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Modify zoning laws to support urban density and diversify housing types, optimizing land use.
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Reduce construction costs by utilizing cost-effective materials and adjusting government fees.
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Encourage the development of purpose-built apartments with incentives like development charge waivers and the use of public land.
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Increase the available housing stock by converting short-term rental units, facilitating the construction of secondary suites, and repurposing non-residential buildings.
John Stackhouse, SVP at the Office of the CEO, RBC, underscores the collaborative effort needed among Canadians, including homeowners, builders, and policymakers, to maintain home ownership as a core aspect of the Canadian dream.
Stackhouse advocates for implementing these pragmatic solutions to rebalance the supply-demand equation and sustain Canada's prosperity. The full report is available for those seeking detailed insights into the proposed strategies.
