Coordinated Approach Needed to Boost Housing Supply: Desjardins
A new report from Desjardins Group highlights the importance of a coordinated approach by all levels of government to address Canada's housing supply crisis. The report emphasizes the need for policymakers to take urgent action and collaborate on potential policy options to tackle the issue effectively.
The report emphasizes that governments should focus on reducing barriers to building new housing by addressing restrictive zoning and streamlining processes to reduce costs and speed up construction. It also suggests looking at market inefficiencies and implementing incentives to encourage more housing development.
At the federal level, the report suggests options such as low-interest loans from Canada Mortgage and Housing Corp. and tax breaks to reduce capital costs. Additionally, measures like deferred capital gains tax and recaptured capital cost allowance on the sale of rental housing, if reinvested in rental stock, could help level the playing field between purpose-built rentals and condominiums.
Incentivizing homebuilding is crucial, and the report suggests exploring tax incentives like the exclusion of GST/HST on purpose-built rental construction. The report also highlights the importance of ensuring population growth aligns with sustainability goals and recommends prioritizing immigrants with skilled trades training to address challenges posed by an aging construction workforce.
At the provincial level, Desjardins points to Quebec's adoption of provincial licensing for short-term rentals as a model for other provinces to follow. The report also suggests strategies at the community and construction levels, including ending exclusionary zoning, repurposing underutilized spaces, and promoting innovative housing solutions like prefabricated homes.
In conclusion, a coordinated and comprehensive approach is needed to address the housing supply crisis in Canada. By working together and implementing a range of strategies, governments can make significant progress in boosting housing supply and ensuring affordable and inclusive communities for all.
Hot Take: The Impact of Coordinated Housing Policies on New Businesses
The Desjardins Group's report on Canada's housing supply crisis offers valuable insights for new businesses, particularly those in construction, real estate, and related industries. The report's emphasis on a coordinated approach to address the crisis underscores the importance of collaboration between businesses and all levels of government.
Reducing Barriers and Streamlining Processes
The report's call for reducing barriers to building new housing and streamlining construction processes presents an opportunity for new businesses. Companies that can navigate these challenges efficiently may gain a competitive edge in the market.
Federal Incentives and Tax Breaks
The suggested federal measures, such as low-interest loans and tax breaks, could significantly lower capital costs for new businesses. These incentives could also encourage more housing development, creating more opportunities for growth and expansion.
Addressing Workforce Challenges
The recommendation to prioritize immigrants with skilled trades training could help new businesses address the challenges posed by an aging construction workforce. This strategy could ensure a steady supply of skilled labor, crucial for business sustainability.
In conclusion, the Desjardins Group's report highlights the need for a coordinated approach to Canada's housing supply crisis. This approach could have significant implications for new businesses, potentially creating a more conducive environment for their growth and success.