©Reuters. File photo: April 17, 2023, a home under construction near Ottawa, Ontario, Canada.REUTERS/Lars Hagberg //File photo
(Reuters) – The affordable housing crisis that is hitting the Canadian government’s popularity will take years to resolve, even as construction hits an 80-year high, says Chrystia Free. Finance Minister Rand said on Saturday.
Her comments marked one of the first senior members of Prime Minister Justin Trudeau’s Liberal government to acknowledge the scale of the challenge. Polls show the Liberals are lagging behind their Conservative rivals, who blame Ottawa for high inflation and soaring home prices.
Housing issues are primarily the responsibility of the 10 provinces and major municipalities, with Ottawa’s role limited to policy advice and financial incentives.
“It will require all of us — federal and state, cities and towns, private sector and nonprofits — working together for a common purpose. It will take years, not weeks or months.” Freeland said.
“It will take a greater national effort to build the housing that a growing Canada needs,” he told a conference in Montreal, adding that the country is moving at a pace not seen since the 1940s and 1950s. He said there is a need to build housing on a scale.
In an effort to expand supply, the government announced it would eliminate the 5% federal sales tax on new rental apartment construction and is calling on cities to step up their efforts to address the issue.