The federal government cites main drivers of price growth
The federal government is intending to take harsher measures against investment properties to help bring housing prices down to more reasonable levels, according to Housing Minister Ahmed Hussen.
Citing “marching orders” outlined in a letter from Prime Minister Justin Trudeau, Hussen said that the Liberal administration will be cracking down on flipping and foreign ownership of unoccupied homes.
The government will review, and revise as necessary, the rules governing profits and down payments to discourage “excessive profits,” Hussen said.
“The point is to reduce the speculative demand in the market and help cool these astronomical increases in prices,” Hussen told The Canadian Press.
Additionally, the government will likely apply pressure on municipal-level policy makers who might be inclined to yield to the “not in my backyard” sentiment, Hussen said.
“There has to be a national conversation, I believe, to overcome, sometimes what I think is unreasonable opposition to affordable housing in neighbourhoods,” Hussen stated. “These are well thought out, well-regulated, well-supported plans and sometimes, I find, that there is NIMBYism that goes on. It’s just discouraging.”
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Other possible measures include a ban on blind bidding and provisions to ensure faster development timelines.
Hussen said that he’ll be collecting provinces’, cities’, and housing providers’ feedback on these plans at a summit scheduled for early 2022.
Earlier this month, the Canadian Real Estate Association predicted that the national average home price will have increased by 21.2% annually to reach $687,500 by the end of this year.
