"Bold action" needed to ensure availability and affordability
An Ontario housing industry association has called on governments to stay the course when it comes to policies focusing on increased housing supply.
In a statement that came in the wake of latest national housing activity data, the Ontario Real Estate Association said that the provincial government, in particular, needs to take “bold action to save the Canadian dream of homeownership by increasing housing supply.”
The deterioration of affordability has been especially apparent in Ontario, which saw its average home price spike by nearly 7% annually to reach $932,000 as of the end of 2022.
“Thanks to increasing interest rates and a lack of homes on the market, affordability of homeownership for young families is at historic lows,” said Tim Hudak, CEO of OREA. “To make matters worse, [the latest] data revealed that new listings are shrinking meaning that fewer homes will be on the market heading into 2023 for buyers to see.”
Governments should not let themselves get misled by the current lethargy in the housing market, he added.
“Policymakers should not make the mistake that a slower housing market means that housing affordability issues are being solved,” Hudak said. “The case is quite the opposite – the housing affordability crisis has deepened, and we need to double down on getting more homes built, not ease off.”
Among OREA’s suggestions is for the provincial authorities to end exclusionary zoning in urban areas that are continuously subject to strong traffic.
“This change would open the door to tens of thousands of new homes in existing communities,” Hudak said. “Ending exclusionary zoning also has cross-party support and is proven to be a very effective policy for boosting housing supply in other jurisdictions.”
