South Shuswap Scoop May 2022

More Needed to Achieve More Housing

By Mel Arnold, MP North Okanagan-Shuswap

In just six years, the average price of a home in Canada has doubled to $869,000. This average may be higher than that in the North Okanagan-Shuswap, but our communities are acutely affected by constant price increases as Canada’s housing crisis continues to worsen.

Last fall, I hosted Indigenous, provincial, regional, and municipal government representatives in rounds of pre-budget consultations and housing shortages were a consistent theme. Young adults and families face tough choices between staying in the communities where they are established or moving away because they cannot access home ownership here. Local businesses have reduced operating hours or days of operation because workers they need cannot afford to rent or own a home here. The housing shortage even limited effectiveness of the federal government’s Rural and Northern Immigration Pilot program in Vernon.

Last month, the federal budget was presented with great fanfare around resources and measures that the federal government says will assist Canadians contend with rising housing costs, whether as aspiring homeowners or renters. Budget proposals include $475 million to provide a one-time, $500 payment to those facing challenges in affording housing. This approach may provide some relief for a month or two, but it is a shame that such a sum of money will be disbursed without a single home being built.

The budget also proposes doubling the First Time Home Buyers’ Tax Credit from $750 to $1,500 and establishing Tax-Free First Home Savings Account to save up to $40,000 for first time homebuyers. While these measures represent bits of support, the federal government seems to ignore the reality that Canadians today are stretched thin just paying their bills, let alone saving $40,000 for a down payment.

Canadian real estate is a hot commodity for foreign investors, some of whom use our markets to hide or launder their money- activities that skew price increases in our housing markets.

While the budget proposes to ban foreign investment in nonrecreational, residential property in Canada for two years, it is unclear how such a ban can assist Canadians. This proposal contains exemptions for international students and individuals on work permits and these loopholes will not stop proxy purchasers like the “student” who bought a $31 million mansion a few years ago in Vancouver.

Regardless of whether they are renters or aspiring homeowners, young or old, Canadians need more from their federal government and solutions may not necessarily require the government paying for or being part owner of more Canadian homes.

For instance, perhaps the federal government should act on the 1.3 million dwellings sitting empty in Canada or work with the province, municipalities, and builders of BC to figure out how to bust the logjam because no government or builder can do it alone.

There appears to be political will at all levels of government to see more homes built for Canadians and I will continue work to mobilize this will and push for policies and supports to see more homes built in the North Okanagan- Shuswap.