Fixing Canada’s Housing Crunch
By Lucas on Oct 31, 2013
By Penny Munoz
The high cost of housing is possibly one of the most pressing financial issues on Canadians today, affecting all of us in more ways than we often think. Home to 2.8 million people, with more than 90,000 households on the social housing waiting list, Toronto joined municipalities across Canada in the “Fixing Canada’s Housing Crunch” campaign, calling on the federal government to implement a national housing strategy.
In a letter to the Prime Minister, the Federation of Canadian Municipalities (FCM) stated that one in four Canadians are paying more than they can afford for housing and that as a result, Canadians’ mortgage debt is more than $1.1 trillion. In addition, the Bank of Canada announced that housing costs and household debt pose a significant threat to personal financial security, putting our national economy at risk.
Representing the concerns of more than 2,000 member municipalities that provide residence for about 90% of Canadians, the letter urged the Canadian government to focus on the housing market, committing to greater stability and security long-term.
The problem: declining federal contributions to social housing across Canada are leaving municipalities scrambling for funds to maintain existing programs and meet the needs of Canadian citizens.
In 2012, Toronto received approximately $161.3 million from the federal government for social housing, but that number is expected to drop to $128 million by 2017. In order to close the $33.4 million gap, property taxes can expect at least a 1.4% increase, an unrealistic hike that would debilitate the affordability of housing in the city. The campaign proposed by the FCM calls for action from the federal government to help develop a long-term plan that will meet the needs of all Canadian citizens from new families to seniors, prevent vulnerable Canadians from being pushed onto the street, and help maintain jobs through attractive living options that might attract new workers.
"City Council is united in its view on this important issue," said Councillor Bailão. "We are here today to speak out on behalf of people like them who need their governments to step up – not step back – when it comes to supporting a strong housing system, a system that maintains our national social housing legacy and meets the growing housing needs across our country."
The campaign hopes that a positive response from the federal government will produce an efficient long-term plan, increase predictability in the housing market, and help Canadians become homeowners.
