Introduction
Canada’s National Housing Strategy is a zealous program developed to help more Canadians have a place they can call home. Residents of Canada can live permanently in a satisfying rental apartment, but buying their own home remains a dream. The federal government has committed $70 billion over ten years to programs that will make housing more affordable for Canadian families and reduce homelessness by 50% (What Is the National Housing Strategy?, 2019). However, most citizens still have to use borrowed funds, resulting in the risk of losing their homes if they cannot repay their loan debt on time and must carry maintenance costs from the family’s budget simultaneously. New buildings are undoubtedly crucial because there is a shortage of housing options for people.
However, the biggest concern is what resources are available for people to get into these homes. Once vulnerable people get permanent housing and low-income families find a home to live in, how will they be able to maintain it? Every citizen’s housing crisis today is more profound than just the need to build new homes and buildings physically. There is a need to determine if sufficient funds are being allocated to construct new facilities and provide all Canadians with equal access to them. Programs that help Canadians continue to live safely with a roof over their heads need to be implemented and effectively enforced.
Social Justice Question
Having safe housing should be a fundamental human right. At the same time, numerous people are still living in inadequate and unsafe housing or on the streets. How can the government and society ensure safe and affordable housing is available to all Canadians? Nowadays, the idea of one day having one’s own home seems like something that most people will never achieve. With the rising cost of living, most Canadians struggle to provide for the necessities of themselves and their families, let alone attempt to purchase a home.
Dizzying price increases, once a problem mainly limited to areas around Vancouver and Toronto, became a national emergency during the pandemic, with the average Canadian home price rising more than 30% between July 2019 and July 2021 (Ward, 2019). At the same time, COVID-19 was an additional factor that brought new attention to the issue of rent. On the one hand, threats of eviction during provincial stay-at-home orders highlighted the plight of low-income renters, many of whom were disproportionately affected by job loss in the early stages of the pandemic. On the other hand, the quality and affordability of rental options have increasingly become a middle-class issue, as more potential homebuyers feel permanently disconnected from homeownership.
Numerous analysts and industry players point to another problem that explains the skyrocketing home prices: a shortage of homes for everyone who wants to buy or rent. According to several experts, the housing supply in Canada has not kept pace with population growth. While national borders have been closed to most immigrants since March 2020 to limit the spread of COVID-19, between 2016 and 2019, Canada welcomed nearly a million new permanent residents (Raphael, 2020). This increase likely contributed to the surge in housing demand during the pandemic.
The growing number of international students also contributes to the growing demand for housing. In 2019, Canada issued more than 402,000 new student permits, according to the IRCC (August & Walks, 2018). Many of these students end up settling here for the long term, as it is the easiest way to get permanent residency in Canada. When it comes to housing, generations matter likewise (Patino et al., 2018). The demand for housing is related to the number of people who need a roof over their heads and the number who reach the age of family formation and are ready to buy a home.
Moreover, whether young Canadians are buying or renting, another aspect of the housing shortage is the lack of housing options suitable for families. Some argue that Canada needs to build more homes and also needs more suitable homes (Raphael, 2020). It is the so-called missing middle problem. Urban development in Canada is often characterized by a division between large, expensive detached houses and tiny apartments in high-density homes, leaving few options for middle-income families. Economists have long noted that low interest rates are a key factor in the rising home prices in Canada.
Low interest rates have enabled Canadians to take out increasingly larger mortgages, thereby affording more expensive homes. According to the Bank of Canada’s latest seasonally adjusted data, the total mortgage debt owed by Canadians in September 2020 was $1.7 trillion (Raphael, 2020). While mortgage rates were already low before the pandemic, they fell even further after the onset of the health crisis, as the Bank of Canada used various tools to lower borrowing costs and stimulate economic activity to mitigate the impact of COVID-19.
Among other measures, the Bank of Canada has maintained its key interest rate at a historic low of 0.25% since March 2020 (Ward, 2019). The Bank of Canada has repeatedly highlighted the issue of high household indebtedness amid the housing boom. However, it cannot limit Canadians’ borrowing or keep housing affordable. Furthermore, more funding is needed for housing, which is a key focus of Canada’s National Housing Strategy.
Policy Purpose and Goals
Even though Canada is one of the top ten economies in the world, there are hundreds of thousands of homeless people in the country. However, Canada’s new policy contains all the essential elements of a rights-based approach to housing (Aubry et al., 2020). It legislates a human right to housing and creates mechanisms to hold the government accountable and overcome systemic barriers that impede access to decent housing. The government took this crucial step by working with civil society and UN human rights bodies (Patino et al., 2018).
If the Government of Canada, historically reluctant to recognize citizens’ right to housing, has been able to adopt a national housing strategy that considers human rights, it is a significant decision that will affect the policies of other countries. Moreover, the policy anticipates the creation of an independent Federal Housing Advocate. It will monitor the government’s performance in housing, receive complaints about existing bureaucratic obstacles, and initiate hearings before an independent committee answerable to the Canadian Parliament.
The government recognizes that only by investing in its people can it stimulate economic growth (Aubry et al., 2020). Affordable housing is a complex problem, and there is no one-size-fits-all solution, but these policies can provide more people with a place to call home and a real and fair chance for success. Thus, the innovations represent an ambitious 10-year plan to invest in giving more Canadians a home.
The Inclusion Lens
Policies will positively affect many processes, most notably support for vulnerable populations. The new program targets a related social agenda – the problem of homelessness, which sometimes affects immigrants and refugees. Among the highlights of the budget’s implementation are the following: CAD 475 million will be allocated as a housing allowance to those who face the challenges of housing inaccessibility (Ward, 2019).
CAD funds will also invest in the Housing Acceleration Fund, with a new focus on affordability, to be spent on emergency housing and distributed over two years, doubling annual funding for the Reaching Home housing strategy. Moreover, money will be allocated over five years to jointly develop and launch an urban, rural, and northern Indigenous housing strategy (Patino et al., 2018). The policy aims for equality and ensures that women can exercise their right to housing on an equal basis with men.
Personal income and resources are also on the Canadian government’s agenda, and this policy will promote access to resources and income equality. To this end, one-third of the policy budget is aimed at ensuring that as many people as possible can live in their own homes (Aubry et al., 2020). In the context of rising inflation and significantly increased rental prices, this was a significant step for the Canadian government.
The results of the programs introduced can already be seen today. In major cities such as Ottawa, Whitehorse, and St. Thomas, government programs and support from community organizations have reduced housing affordability by 19-25% (Raphael, 2020). Canada’s National Housing Strategy is a government program that aims to reduce chronic homelessness by at least half by providing affordable housing. Moreover, it also encourages people to participate in the housing selection process due to the increased availability, falling prices, and overall affordability. Thus, people will have options and can live in their own space, which they like.
Policies do not have a significant impact on creating a safe environment or promoting social interaction. However, it does increase confidence in the government and decrease the level of inactivity, increasing security. At the same time, the policy will protect the right of Canadians to have access to housing, but the right of foreigners to purchase real estate will be limited. The Department of Housing plans to impose a temporary ban on the purchase of non-recreational housing by foreign buyers and a ban on blind bidding in the Canadian real estate market (August & Walks, 2018). Such reforms will provide housing for Canadian homeowners, most of whose properties remain unaffordable.
Transparency in real estate transactions is the primary goal of banning bidding, which leaves most bidders unable to see the bids of other buyers. Rapid construction initiatives, including housing projects targeting women and supporting people without homes. They increase social support and opportunity for at least 10,800 housing units through the Innovation Fund, which encourages new financing models and best construction practices (August & Walks, 2018). Moreover, creating a five-year rental stream with buyouts will help Canadian families move from rental properties to homeownership.
Implementation, Impact, and Future Changes
Every citizen should have a safe and accessible place to call home. It is precisely what Canada’s national housing policy does, which provides essential steps to empower Canadians. The policy is adequate because it sets crucial goals to build more houses across the country and achieve many people’s dreams. This policy could put Canada on the path to doubling the construction rate, making it easier for people to buy homes, and reducing the cost of housing.
Some problems with the new housing regulations need to be solved. Firstly, there will be a problem of labor shortages that need to match the planned pace of construction (August & Walks, 2018). One recommendation could be to turn to immigrants for help. More people would be needed, including Canadians already residing in the country, as well as young individuals interested in skilled trades, to construct the required number of plots. Moreover, the policy should include a guarantee of eligibility for home inspections and transparency in pricing history.
The most rational policy scheme would be to limit the cost of housing to no more than four times the family’s income, with a further reduction in the long term. Encouraging new supply is one of many housing policy changes necessary to positively impact the rental market. The federal government also needs to manage the existing supply of rental housing in Canada. It needs to collaborate with higher education institutions to develop more apartments and dormitories specifically designed for students. It would help relieve some of the pressure on local housing markets. Furthermore, it is essential to maintain stable interest rates, build more infrastructure, and attract immigrants.
There is an urgent need for a broader national housing strategy. It requires the participation of federal, provincial, and municipal governments, private sector developers, investors, and non-profit organizations. It will allow for the accurate identification of problems and a more responsive supply response across all housing market segments (Aubry et al., 2020). Moreover, it is necessary to consider the interests of vulnerable population segments and increase the reconstruction of already-built houses and modular construction. The government is ready to allocate considerable funds to construct and implement related programs.
It is undoubtedly a positive strategy, as housing is a human right that must be fully realized (Ward, 2019). The policy will address the social determinants of health because there will be a significant change in housing needs. Policymakers will modify programs to provide significantly more affordable apartments through construction, purchase, and renovation, ensuring that our most vulnerable households are safe and permanently housed in the future. Life, as a critical factor of health, deserves the full attention of everyone nowadays.
Conclusion
It can thus be concluded that the housing rights of Canadians are at risk. If the slow pace of new home construction continues, Canada will face a housing supply crisis, which will be temporarily exacerbated by the pandemic, along with record-low mortgage rates and shifting housing preferences. The conditions for a sustained rise in home prices were already in place long before the COVID-19 pandemic. In the run-up to the pandemic, housing supply had not kept pace with population growth, indicating a near-record imbalance between housing supply and demand. One alternative solution to the problem is the introduction of Canada’s National Housing Policy.
It is an effective policy for increasing the housing available to each citizen. However, all policies have drawbacks that require immediate solutions. The primary considerations are the regulation of interest rates, the involvement of immigrants, and the participation of all relevant political actors in implementing the policy. The government and citizens share a vital responsibility to uphold the fundamental right to housing for everyone. This requires us to focus specifically on the needs of vulnerable communities and increase efforts in rebuilding existing homes, alongside the use of modular construction. A unified, joint effort is the only way to positively impact the situation and make our nation a true home for all.
References
Aubry, T., Bloch, G., Brcic, V., Saad, A., Magwood, O., Abdalla, T, & Pottie, K. (2020). Effectiveness of permanent supportive housing and income assistance interventions for homeless individuals in high-income countries: a systematic review. The Lancet Public Health, 5(6), 342-360.
August, M., & Walks, A. (2018). Gentrification, suburban decline, and the financialization of multi-family rental housing: The case of Toronto. Geoforum, 89, 124-136.
Patino, E. D. L., & Siegel, J. A. (2018). Indoor environmental quality in social housing: A literature review. Building and Environment, 131, 231-241.
Raphael, D. (2020). Poverty in Canada: Implications for health and quality of life. Canadian Scholars.
Ward, N. (2019). The Canadian house of commons. University of Toronto Press.