Fraser emphasizes progress in broader efforts to address housing supply crisis
Federal Housing Minister Sean Fraser addressed concerns about Canada’s housing market on Monday, noting a significant increase in home construction in the Maritimes despite a national downturn in building permits. In an interview with CTV Atlantic, Fraser acknowledged the overall drop in permits but emphasized progress in Atlantic Canada, particularly Nova Scotia.
Fraser pointed to Statistics Canada’s recent report, which showed a decrease in building permits across the country. However, he noted that, when examining longer-term trends, the Maritimes have seen substantial growth.
“When you look over a longer time horizon, you have to follow the trajectory of what’s actually playing out,” Fraser noted.
Specifically, Fraser highlighted a 64% increase in home construction in Atlantic Canada from the beginning of the year to the end of June. In Nova Scotia alone, the number of homes under construction rose from approximately 2,500 last year to more than 4,000 this year.
Despite this progress, Fraser cautioned that the housing crisis remains unresolved. “I’m not going to sit here and tell you the housing crisis is solved,” he stated. “There are real people that are struggling in real ways.” He acknowledged the challenges in addressing housing affordability and the complexity of factors affecting real estate prices, including labour access, material costs, and supply-demand dynamics.
Progress in addressing housing crisis
Fraser also discussed the need for continued investment in both traditional and innovative homebuilding approaches. He emphasized the importance of constructing affordable housing for vulnerable populations and suggested that addressing the structural deficiencies in the housing system is crucial.
“The answer to challenging housing dynamics or health care dynamics is not to pull investments out of the system, it’s to fix the structural deficiencies but then make the investments necessary to achieve the outcome you want to see,” he explained.
Moreover, Fraser proposed expanding the use of manufactured homes and increasing productivity through targeted investments and low-cost loans to local companies. “There’s massive opportunity to invest in factories to have manufactured homes,” he said. This approach aims to create new job opportunities and enhance productivity in home construction.
Fraser acknowledged that while immigration plays a role in housing demand, it is not the sole factor. He noted that current homebuilding efforts are roughly aligned with the annual increase in permanent residents but stressed that temporary immigration programs present additional challenges.
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