Canadian homebuilders grow confidently, saying industry success requires the cooperation of local governments


Canadian homebuilders are cutting jobs to increase housing supplies and mitigate the affordable crisis. Industry participants also point out that cooperation at the local government level is essential to the solution.

Despite supply chain and labor challenges, homebuilder confidence is growing, according to the first quarter release of. Canadian Association of Home Builders (CHBA) Housing Market Index April 27th.

Eighty percent of builders expect the same number of housing starts as in 2021, which is a positive sign to address housing shortages, but the remaining point is the lack of land availability (the lack of land availability). 61%), as well as delays in authorization and approval as a failure (68%). ), According to CHBA.

“Both show the important role that municipalities play in increasing housing stock to combat demand and demand imbalances,” CHBA CEO Kevin Lee said in a news release.

CHBA is a federal budget $ 4 billion over the next 5 years The Housing Acceleration Fund (HAF) aims to help municipalities build new homes, with a goal of 100,000 new homes during that period.

“As the fund unfolds, it will be important for local governments to participate in the actions of the states associated with this initiative,” he said. CHBA In a news release on April 7th after the delivery of the federal budget.

“Local governments hold the key to unleashing more supply. With this federal government support and incentives, CHBA will do more to solve housing shortages and mitigate the crisis of affordable housing. I hope that the local government will act positively. “

Mortgage Professionals Canada (MPC) said it has held ongoing meetings with parliamentarians over the past three years to shift its policy focus from curbing housing demand to increasing housing supply. However, issues at the local government level are also attracting the attention of MPC.

“Several challenges are expected for a successful implementation. [government’s housing goals]And to be successful, the state also hopes to encourage municipalities and help ease the fear of NIMBY’s small but tactical groups. [not in my back yard] “Residents,” said MPC President and CEO. Paul Tyror Budget 2022 commentary on April 8th.

In discussing that new HAF Budget 2022The government said that changes are needed in the system that is preventing more homes from being built. Addressing the issue of affordability of housing requires all three levels of government, and therefore municipalities will be motivated to build more housing.

Federation of Canadian Municipalities (FCM) President Joan Vanderhayden also praised the HAF’s announcement, stating in a post-budget statement that it should be designed with the municipality to “improve swift action and results directly.” .. The FCM did not respond to a request for details from the Epoch Times.

Recognized by the federal government Budget 2022 Canada has fewer homes per capita than many Organization for Economic Co-operation and Development (OECD) countries. Canada builds about 200,000 new homes annually, and the government will double this over the next decade to meet affordable challenges and meet the growing population of housing demand. It states that it is necessary.

Canada Mortgage and Housing Corp. (CMHC), which manages HAF, will be in 2022. Housing supply report On May 3, it was announced that housing starts were struggling to keep up with population growth in some metropolitan centers, especially Toronto.

In the hearts of Canada’s big cities such as Montreal, Toronto and Vancouver, apartments dominate construction, the State Housing Department said, “various constraints (land, ordinances, etc.) can become more important in these cities. There is sex. ” In Calgary, Edmonton and Ottawa, he added that the next level of centers started with singles and semi-detached, and Nagaya remained strong.

“Already a record number of units are under construction, and this sector is pushing forward with labor and capacity constraints. Achieving this will require a great deal of effort at all levels of government. Inflationary pressures can increase, “said BMO’s senior economist. Robert Kavic Budget 2022 Housing Initiatives Note To the client on April 7th.

Inflation is already at a high level for over 30 years 6.7%..

Despite CHBA’s optimistic outlook, rising construction material prices add about $ 80,000 on average to the price of a 2,500-square-foot home since the start of the pandemic in a news release on April 27. And half the cost is just timber. CHBA also said supply chain issues continue to cause an average 10-week delay in completing construction.

Rahul Vaidyanath

follow

Rahul Vaidyanath is a journalist in The Epoch Times of Ottawa. His areas of expertise include economics, financial markets, China, and defense and security. He has worked at the Bank of Canada, Canada Mortgage and Housing Corp., and investment banks in Toronto, New York and Los Angeles.

Posted on