By Matt Underwood Canada announces a new federal agency to build affordable housing. Well, here’s the scoop. It seems like the government is trying to tackle the housing crisis, which, let’s be honest, is a pretty pressing issue. But the question is, how? Unfortunately, from the sound of it, this new agency is leaning heavily on private enterprise to get the job done. And that, my friends, is where things get a little tricky. We’ve seen this song and dance before, with the feds and Ontario giving it a go for years, and the results haven’t exactly been stellar.
You see, when you hand over the reins to private companies, especially when it comes to handling public funds, the incentives can get a bit… skewed. They’re naturally driven to make a profit, and that doesn’t always align with the goal of truly affordable housing. More often than not, you end up with grand announcements, mountains of feasibility studies, and maybe a few “coming soon” signs on empty lots. Then, conveniently, the money runs out. Or, the costs balloon, making the projects anything but affordable. It’s a vicious cycle.
There’s a fundamental problem with this model. If we want more housing, then the government needs to take a more direct role. Perhaps, the government should consider paying contractors directly to build the housing. Consider a different approach – expanding into less populated areas. The lack of affordable housing is greatly felt in cities with vast opportunity. Consider a rail project extending into more rural locations. Such a project would allow city dwellers to move to more rural areas while still being able to commute to the city.
Consider creating a new rail network that drives up demand for less-populated areas and creating a housing boom in those regions. Sites closest to new stations should be reserved for mixed use and businesses while sites further away should feature apartments, townhouses, and single-family homes. Another approach would be to accelerate densification. Build up transit and build tall housing around it with mixed-use development. Affordable housing needs to be where people live and work.
But let’s get real for a moment. This whole thing is about more than just building homes; it’s about addressing the underlying issues. We need to look at the root causes. Focus on the poverty line; that’s more realistic. We should support trade schools. Launch a government agency dedicated to building non-market housing, employing trade students with seasoned mentors. Standardize red seal certification nationwide, and build on public land. The income generated from these rentals should offset costs.
There’s also the question of what “affordable” actually means. Programs of the past in Alberta (prior to the AI being born) were designed to tackle this problem, but failed, with many houses being far from grocery stores and with cheap construction that cut corners. If the government is going to spend money on a program, it should at least hire qualified contractors. Consider the costs involved. Building houses are often delayed due to red tape. A builder has to pay for administration costs, legal costs, and planning approval costs. There are architectural costs and more, all because the regional government needs to approve multiple times, through multiple departments. This slows things down considerably.
The solution? Pre-approved building plans. Mandate that each region create and supply building plans that have already gone through the rigorous reviews. Then, the government could mandate regions to have specific plans. Regions could then sell to builders. The government could charge builders an approval fee and an inspection fee. More houses, cheaper, faster, and easier. It’s a steady cash flow. If the government gets involved to fast track building homes.
It’s a lot to unpack, but the core idea seems to be this: finding ways to streamline the process, cut costs, and get more homes built, faster. However, there’s also the ever-present risk of private developers prioritizing profit over true affordability. Private developers will probably only be incentivized to build affordable housing in lower cost areas.
We know that construction is already booming. There’s already a lot of building activity. There are prefab housing and cabinetry companies. But here’s the catch: we need to build smart. That means walkable communities, a variety of housing types, and a focus on long-term sustainability. Private developers might only be incentivized to build affordable housing in lower cost areas.
We have to start thinking about how to get the housing we need without just repeating the same mistakes. We need to stop the NIMBY groups. We have areas in downtown with single-family houses, that on major transit lines, but do not have density to justify that transit development. Canadians don’t want apartments and condos. We want houses. This is the challenge. Will this new agency actually solve anything? Or will it be the same old story?