A blue-ribbon panel charged with looking into the reasons behind high housing costs and shortages in many regions of the country has determined that government – especially local administrations – are the primary culprits in this story.
The Housing Policy Working Group was created by the C.D. Howe Institute last fall with former federal cabinet minister Lisa Raitt acting as one of the co-chairs. The group was tasked with looking at the housing situation in the country, a sector plagued with shortages, complex rules and high costs.
The group has identified five key impediments restraining the industry from answering the demand as signals coming from the marketplace.
Heavy reliance on front-loaded development fees imposed by local governments topped the list. Ontario is especially notable on this front. Another report has ranked Saskatoon as highest among cities outside of Ontario.
The group suggested governments need to clear the way for new financing models, including greater access to debt, to fund infrastructure over its useful life time rather than imposing it all upfront.
