In Canada, the deepening housing crisis has become a central issue in the political arena, with Conservative Leader Pierre Poilievre and Prime Minister Justin Trudeau‘s government clashing over responsibility and solutions.
Poilievre, through a 15-minute video, has levied criticism at the Trudeau government, blaming it for the housing challenges facing Canadians. He argues that the crisis, particularly noticeable in the soaring costs of housing, started around eight years ago. Currently, the national average home price in Canada stands at approximately $650,000, with rental and mortgage costs also escalating.
The housing crisis has gained such prominence that it is now ranked as the second most critical issue for Canadians, trailing only behind economic concerns. According to a poll by Abacus Data, about a third of Canadians believe the Conservatives, under Poilievre’s leadership, are best positioned to handle the housing crisis.
Responding to the mounting pressure, Housing Minister Sean Fraser has acknowledged the crisis, emphasizing the need to build homes “by the millions.” He urged cities to address red tape and zoning issues, offering federal support to those who cooperate. A C$4 billion housing fund has been established to facilitate this support.
Conservative Leader Pierre Poilievre points to his message at a press event in Vancouver on Sept. 14, 2023. (Ethan Cairns/Canadian Press)
Prime Minister Trudeau has acknowledged the housing shortage, which he believes is a significant factor in the high prices. However, he points out the complexity of the issue, noting that housing primarily falls under the purview of provinces and municipalities, limiting the federal government’s direct intervention capabilities.
Poilievre has proposed a “Building Homes Not Bureaucracy Act,” which seeks to address the bottleneck in housing supply by targeting municipal governments. His plan requires cities to increase their housing completions by 15% annually, with financial incentives for exceeding targets and penalties for failing to meet them. This plan also includes withholding federal transit and infrastructure funding from cities that fail to develop high-density housing around public transit stations.
In a sharp retort to Poilievre’s proposals, Trudeau has dismissed them as “empty slogans,” criticizing the approach as irresponsible. The government has made several recent announcements, including the elimination of GST/HST on rental home construction and initiating the Canada Mortgage Charter to guide Canadians with mortgage renewals.
Despite these efforts, there is a perception that the government’s message is not resonating with Canadians, overshadowed by the immediacy of the housing challenges they face. This sentiment is captured in the words of Eddie Sheppard of Abacus Data, who notes that Canadians seem to be overlooking these announcements.
