Generation Squeeze founder has his say
Contrary to popular opinion and the federal government’s policy stance, there are no “easy villains” nor one-shot solutions to Canada’s perennial housing woes, according to Paul Kershaw, founder of Generation Squeeze and policy professor at the UBC School of Population Health.
Kershaw said that placing the housing crisis on the shoulders of foreign students has become the “latest flavour of the month,” after the federal government has previously placed blame on developers, homeowners, and labyrinthine bureaucracy.
“[These students] play one small part, but the deeper, deeper reason that we have allowed home prices to leave earnings behind and lock a younger demographic out of secure housing… is because many Canadians, especially myself and older Canadians, we have become entangled with the idea that it helps us when home values go up,” Kershaw said, as reported by BNN Bloomberg.
Kershaw said that beyond boosting the supply of non-profit housing, much more needs to be done on the policy front to ensure the best affordability for the most number of Canadians.
“That cultural orientation is what really is harming a younger demographic; that is why I think we need to break our cultural addiction to rising home values,” he said. “We’re not going to fix the housing system if we’re just going to pick that one piece.”
The CMHC had stated that 5.8 million homes needed to be built by 2030 to restore housing affordability, but the current pace is on track to reach only 2.3 million.
— Canadian Mortgage Professional Magazine (@CMPmagazine) August 21, 2023
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Fraser vetoes outright ban on immigrant participation in housing
Housing minister Sean Fraser said that far from addressing the crisis, preventing newcomers from participating in the market could be the worst possible response to Canada’s housing issues.
This is because the federal government’s immigration policy is partly intended to replenish Canada’s aging workforce.
“I would urge caution to anyone who believes the answer to our housing challenges is to close the door on newcomers,” Fraser said.
“There are no simple solutions, but if we continue to advance measures that help build more stock, that help make sure it’s easier for people to get into the market and make sure we’re offering protections for low-income families, particularly in vulnerable renting situations, we’re going to be able to make a meaningful difference.”
