Where should Canada look to improve its housing situation? The answer may shock you
Housing experts who have long promoted moving new home construction from suburbs to urban centres are calling for a similar approach to policy, saying several ideas currently percolating on the fringes of society in Canada have proven successful elsewhere and deserve a more central place in the national conversation.
They argue widespread adoption of government-supported affordable housing, the growth of alternative models like co-operatives and co-housing, and the increased use of advanced building techniques could all play a role in improving Canada's housing system.
Such ideas, which have started to gain more traction in Canada in recent years, are already well-entrenched in many parts of Europe.
“There's plenty of really exciting examples for Canada to learn from,” said Carolyn Whitzman, senior researcher at the University of Toronto School of Cities and author of the recently published book "Home Truths: Fixing Canada’s Housing Crisis."
The situation in some places like Vienna — where a quarter of residents live in social housing — came about through very specific historical circumstances, but other regions show what’s still possible today.
A house for sale sign, Oct. 11, 2024, in Levis, Que. THE CANADIAN PRESS/Jacques Boissinot
France has committed to making 20 per cent of its housing "non-market" -- whether government-subsidized or otherwise outside the private sphere -- through a combination of buying buildings and constructing new ones. It has already reached the roughly 17 per cent mark while managing to integrate the homes into existing neighbourhoods to maintain diversity, Whitzman said.
She noted Canada had adopted the same non-market building targets in the 1970s, but abandoned the approach in the 1990s when the federal government got out of the business of housing construction and funding dried up.
Places like France, Denmark and Austria have made longer-term funding plans for affordable homes by implementing systems where governments provide subsidized loans, which, when paid back decades later, are then recycled into new ones.
“That sort of revolving fund is like a gold standard because it means that the policy is sustainable,” said Whitzman. “It does need to be thought of in 30-year timelines.”
The Danish system has helped create about 21 per cent non-market housing as of 2022, according to the most recent data from the Organization for Economic Co-Operation and Development, which notes the Netherlands stands at 34 per cent. Canada has about 3.5 per cent, the OECD found.
The federal government has rolled out numerous funding programs to increase housing, including a $55-billion apartment construction loan program, a $14-billion affordable housing fund and $4 billion for the rapid housing initiative.
While some programs like rapid housing specifically target the homeless and those in severe housing needs, Whitzman believes overall government programs aren’t doing enough for low-income people due in part to a vague definition of what affordable really means.
“There is an argument that eventually, if there's enough supply, it'll trickle down to low-income people," she said. "But that would take 30 or 40 years, and we've got a housing crisis now.”
Steady funding and long-term commitments for non-market housing also allow non-market builders to grow big enough to become more sustainable. In Finland, which pioneered the ‘housing-first’ approach to ending homelessness that essentially involves providing housing to anyone who needs it, the non-profit Y-Foundation is the fourth largest landlord in the country.
Canada does have some larger-scale housing builders but there’s room for growth and consolidation, said Whitzman.
“You do need to be able to go to the bank if you're a non-market provider and say, 'Hi, I'd like $80 million,'" she said. "There's very few non-market developers who can do that these days.”
Providing non-market housing, as well as more variety in general in housing options is part of making the whole housing system more stable, said Sasha Tsenkova, a professor at the University of Calgary’s School of Architecture, Planning and Landscape.
“Diversity is really critical for resilience,” she said.
A diversity of housing supply that includes non-market rentals, market rentals with security of tenure and price control and a variety of housing types to buy reduces the pressure to get into the market and allows for a more stable progression up the housing ladder, she said.
“People really are not forced to make the choice to become a homeowner,” said Tsenkova.
“So a 25-year-old doesn't have to commit to home ownership and then be constrained in terms of labor, mobility or educational choices or life choices.”
A condo development is seen under construction on the waterfront, in North Vancouver, B.C., on Thursday, July 25, 2024. THE CANADIAN PRESS/Darryl Dyck
By creating policies that make home ownership less necessary, it helps move away from the asset driven mentality in the system that pervades Canada, she said.
The diversity of housing types can also lead to the growth in areas like co-operatives, which come in a few models, or co-housing, which are community-driven developments where units are individually owned but there’s an emphasis on communal space.
The federal government has earmarked $1.5 billion to help develop more co-operative housing, while co-housing is also gaining traction. Some examples include Treehouse Village Ecohousing in Bridgewater, N.S., Little Mountain Cohousing in Vancouver and a smattering of others on the West Coast.
“For Canadians, it's important to know that there's lots of other ways to live,” said Ren Thomas, an associate professor at Dalhousie University’s School of Planning.
“It's not just renting in a high-rise apartment building or owning a single family unit or a single family house.”
Along with different types of building ownership, there’s also innovation on the construction side, said Thomas, noting places like Sweden have widely adopted modular building techniques that make construction faster and potentially cheaper.
“The building techniques that they're using are quite advanced, and, of course, they have the EU standards of sustainability, they're more concerned about climate change.”
Canada is also working to build up modular construction, but it, too, requires long-term commitments and stable demand to be a success.
European countries have far from solved the housing shortages that are widespread globally, with sometimes years-long waiting lists to get into supportive housing and rising rents. But there is no easy solution to such an expensive, contentious and long-term issue.
While Canada is ramping up numerous programs, the results are so far mixed after so many years of being largely out of the game, said Whitzman.
“It’s partly the federal government was out of housing policy for three decades and it's taken a lot of mistakes,” she said.
“We're still at the baby steps.”
This report by The Canadian Press was first published Nov. 3, 2024
CTVNews.ca Top Stories
'He is no hero': Pennsylvania authorities announce charges against Luigi Mangione
Following his arrest in Altoona, Pa. earlier on Monday, Luigi Mangione was arraigned and charged with five counts, according to a criminal complaint.
Union dropped wage demand to 19% over four years in Canada Post negotiations: CUPW
The Canadian Union of Postal Workers (CUPW) has reportedly dropped its wage demand to 19 per cent over four years, CUPW negotiator Jim Gallant told CTV News.
Taxpayer-funded Eras Tour tickets returned by federal minister
While tens of thousands of fans packed Vancouver's BC Place for the last shows of Taylor Swift's Eras Tour this weekend, a federal cabinet minister wasn't one of them.
Sudbury, Ont., family traumatized after hospital said loved one had been released, when in fact they had passed away
Sudbury resident Angela Vitiello says a staff member at Health Sciences North told her that her brother, Allan St. Martin, was released from the hospital late last month when, in fact, he had passed away.
What the upcoming holiday GST relief will mean for consumers
The federal government's GST break will arrive this Saturday, just in time for the last stretch of holiday shopping.
Liberal government survives third Conservative non-confidence vote
Conservative Leader Pierre Poilievre's latest attempt to topple the minority Liberal government in a non-confidence vote failed on Monday, thanks to the New Democrats.
Katie Holmes refutes story about daughter Suri Cruise’s fortune
Katie Holmes has posted a screen grab of a Daily Mail article, which reported that her 18-year old daughter, whose father is Tom Cruise, is now a "millionaire."
Polygamous U.S. sect leader gets 50 years in prison in scheme to orchestrate sex involving children
A polygamist religious leader in the U.S. who claimed more than 20 spiritual “wives” including 10 underage girls was sentenced to 50 years in prison on Monday.
Trudeau says dealing with Trump will be 'a little more challenging' than last time
Prime Minister Justin Trudeau said dealing with incoming president Donald Trump and his thundering on trade will be 'a little more challenging' than the last time.
Local Spotlight
Man, 99, still at work 7 decades after opening eastern Ontario Christmas tree farm
This weekend is one of the busiest of the year for Christmas tree farms all over the region as the holidays approach and people start looking for a fresh smell of pine in their homes.
Saskatoon honours Bella Brave with birthday celebration
It has been five months since Bella Thompson, widely known as Bella Brave to her millions of TikTok followers, passed away after a long battle with Hirschsprung’s disease and an auto-immune disorder.
Major Manitoba fossil milestones highlight the potential for future discoveries in the province
A trio of fossil finds through the years helped put Manitoba on the mosasaur map, and the milestone of those finds have all been marked in 2024.
The 61st annual Christmas Daddies Telethon raises more than $559,000 for children in need
The 61st annual Christmas Daddies Telethon continued its proud Maritime tradition, raising more than $559,000 for children in need on Saturday.
Calgary company steps up to help grieving family with free furnace after fatal carbon monoxide poisoning
A Calgary furnace company stepped up big time Friday to help a Calgary family grieving the loss of a loved one.
'A well-loved piece': Historic carousel display from Hudson’s Bay Company store lands at Winnipeg shop
When a carousel setup from the Hudson’s Bay Company became available during an auction, a Winnipeg business owner had to have it.
Sask. doctor facing professional charges in circumcision case
A Saskatoon doctor has been accused of unprofessional conduct following a high-cost adult circumcision that included a request for the patient to text unsecured post-op pictures of his genitals.
Regina home recognized internationally for architectural design
Jane Arthur and her husband David began a unique construction project in 2014. Now, a decade later, their home in Regina's Cathedral neighbourhood has won a title in the Urban House and Villa category at the World Architecture Festival.
Calgary director Kiana Rawji turns her lens toward slums of Nairobi with 'Mama of Manyatta'
Two films shot in Kenya by a director and writer based in Brooklyn who grew up in Calgary are getting their Calgary premiere screening Saturday.