Ottawa, ON – Scott Aitchison, Conservative Shadow Minister for Housing, released the following statement on recent housing announcements from the Liberals and Canada’s current housing trajectory:
“With housing construction projected to fall 21 per cent by 2028, Canadians are desperate for solutions that will build affordable homes they can finally call their own. Sadly, for the millions of young people looking to buy, the latest announcements from the Liberals will do nothing to restore the promise of Canada.
“55 per cent of Canadians who have been kept out of homeownership now say they have no interest in buying a home over the next year, as another 35 per cent say they want to buy, but will likely have to continue renting or living with family. 23 per cent say cost of living is their primary obstacle, while 35 per cent of those 18-34 say they can’t afford the down payment.
“Despite 88 per cent of respondents saying that housing is still too expensive to buy, Desjardins found that ownership-oriented condo development project starts have fallen below 50,000 a year for the first time since the 2008 Financial Crisis. The share of homes built to be owned has collapsed from 70 per cent to just 45 per cent, with non-condo ownership starts falling by 30,000 since 2019.
“Put simply: Canada is becoming a ‘nation of rentals,’ with the construction of ownership-oriented homes having ‘now fallen to the lowest level since the 2009 recession, and the mid-1990s recession before that,’ according to BMO. Meanwhile, the Parliamentary Budget Officer estimates that Build Canada Homes will add just 26,000 units to the national supply over five years, despite Canada needing 430,000 to 480,000 starts a year just to return to pre-pandemic affordability.
“But instead of building more homes that deliver more affordable prices, Prime Minister Carney has been giving handouts that prevent rents from falling. His Condo Bailout in Vancouver used tax dollars to bid against renters and aspiring homeowners, keeping prices high for those looking for a home while shielding those in the Liberal club from falling prices.
“No wonder a new report found that average rent in Vancouver consumes 87 per cent of a minimum wage worker’s full-time hours. That’s 150 hours a month just for a roof over your head. In Toronto, someone working minimum wage would need to work 145 hours to afford the average rent, while you would need to work 143 hours in Halifax, 126 hours in Calgary and 124 hours in Victoria.
“With Canadians struggling to stay above water, paying more and more for the essentials of life, Canadians are saving less, with only the top 20 per cent seeing their savings grow from 2021 to 2025. Spending has outpaced increases in income for the bottom 80 per cent of Canadians, with borrowing making up the difference, as liabilities rose 22 per cent for the middle 60 per cent of income earners.
“If aspiring homeowners cannot afford to save, how can they afford to enter the housing market? The government needs to correct this path so that every Canadian can have a fair chance to own a home. It’s time to replace illusions on housing with results and get answers on why the Prime Minister is putting a bailout for the Liberal club ahead of getting housing built.
“Unlike the Liberal plan to build more bureaucracy and reward the Liberal club while building fewer homes, Conservatives will cut the GST on all new homes under $1.3 million and reduce development charges so builders can build, buyers can buy, and Canadians can afford a home they can call their own.”