The British Columbia election is making headlines and capturing attention throughout the province, yet the proposed solutions to address one of the most pressing issues — housing affordability — have largely missed the mark.

Conservative plans: ‘Rustad Rebate’, ‘Get BC Building’

Let’s start with the Conservatives’ Rustad Rebate, a $3,000 monthly credit on rent or mortgage interest costs. While well-intentioned, this rebate seems to be a short-term fix that skirts around the larger systemic issues plaguing the housing market. This plan risks inflating property values further by offering rebates instead of addressing the root causes of high housing costs. The rebate could also inadvertently increase demand without a corresponding surge in supply, thus exacerbating the affordability issue it aims to alleviate. 

To be fair, the Conservatives have offered other housing solutions beyond the Rustad Rebate in the form of the “Get BC Building” plan. 

The costed platform and details of this plan were revealed just days before the election, leaving experts little time to understand the long-term implications of the proposed initiatives. Moreover, the platform sets an ambitious and unrealistic GDP growth target of 5.4 per cent, along with a deficit comparable to the one presented by the NDP. A lot of the content focuses on criticizing the NDP rather than providing further details on potential solutions.

Rustad’s proposal to develop new towns certainly captures attention and sparks creativity. But, many British Columbians, including myself, are eager to learn more specifics about how the details of this ambitious plan would be implemented. 

NDP plans: Cover 40% of a home’s cost for new buyers, tax cut & more homes for middle-class

On the NDP front, David Eby’s pledge to cover 40 per cent of a home’s cost for new buyers is similarly problematic, essentially transforming the NDP into the very speculators they criticize. 

While it’s designed to simplify entry into the housing market, this may also result in higher home prices, as sellers anticipate greater purchasing power from buyers. This also only targets a small group within the larger housing market in B.C. – first-time buyers. While we can all agree that first-time buyers are having an increasingly hard time getting into the market, this excludes equally important groups like young couples looking to start a family and seniors looking to downsize.

The plan also ties homeowners to long-term financial commitments that could become a burden if personal circumstances shift, echoing concerns from economic analysts about its potential to create new forms of financial insecurity. 

The NDP’s plan, combined with the Federal Liberals, could also significantly impact our housing market by encouraging potential buyers to pursue short-term incentives for homes that may ultimately exceed their long-term financial capabilities.

Both strategies reflect a trend toward using public funds to bring down housing costs. However, critics argue that these financial interventions don’t tackle fundamental issues such as property taxes and the cost of developing a project, which stand as significant barriers. 

Beyond Eby’s big idea to fund housing costs for new buyers, the NDP proposed a $1,000 boost for household budgets through a middle-class tax cut, along with a plan to intensify efforts against speculators and build 300,000 new homes for the middle class, which appear to be a fresh spin on their earlier policies. 

Green plans: Rental support & emergency housing

And lastly, the Green Party’s focus on rental support and emergency housing clearly leans on the public sector to boost housing supply and protect affordable rentals. While the public sector definitely has a role in making housing more affordable, we can’t forget about helping the private sector too. This approach overlooks a chance to come up with strong, creative policies that could connect with a wider audience looking for real change.  

Many of these electoral solutions fail to address the root causes of the complex housing affordability crisis in the region. From what we can see, even when they do acknowledge these underlying issues, they often lack specific details on how the party plans to implement effective measures.

Key solutions missing from the discussion include addressing the skilled worker shortage affecting home construction, slowing the growth of housing prices to allow wages to catch up, collecting wealth windfalls from zoning changes to fund affordable housing and implementing strategies to control costs in the regular housing market.

Ultimately, these housing strategies, though well-intentioned, risk becoming costly stopgaps. True progress demands policies that not only offer immediate relief but also pave the way for sustainable growth in our housing supply. B.C.’s housing crisis calls for a balanced approach that includes fiscal responsibility, market dynamics and long-term planning — a challenge that remains unmet in the current political discourse.

On September 16, the Ontario government announced a formal consultation process to implement pay-on-demand surety bonds as an alternative to Letters of Credit (LOCs) for home builders.

The Ontario Home Builders’ Association (OHBA) recognizes this is a significant and progressive step forward for the housing industry and notes its appreciation for the efforts and commitment of Minister Calandra and the Ministry of Municipal Affairs and Housing to modernize how new housing approvals are administered.

‘Precisely the type of innovative regulatory updates we need to effectively increase our housing supply’

OHBA has advocated for this financial security tool to help home builders access capital for new housing projects for years, as it will streamline the construction of more homes in Ontario. In a release, the organization says it’s proud that its efforts were able to highlight the benefits of surety bonds as an effective tool, and it’s eager to collaborate with municipalities to facilitate its adoption.

“This is a great step forward for Ontario’s housing industry and the issue of housing affordability,” OHBA CEO Scott Andison, who played a significant role in moving the initiative forward and worked closely with Minister Calandra and Municipal staff, says.

“Allowing builders to access capital held up in LOCs and reinvest it into new projects is precisely the type of innovative regulatory updates we need to effectively increase our housing supply.”

What’s next

A key focus for the organization during this consultation will be to ensure that builders currently using LOCs can easily transition to surety bonds, freeing up essential capital for new projects.

As part of the legislative framework established under Bill 109 and Bill 185, the government is exploring regulations to authorize using surety bonds for securing municipal obligations tied to land-use planning approvals.

The consultation is open for 30 days, concluding on October 16, and OHBA will be submitting feedback on behalf of its industry and the 28 local associations across Ontario.

A recent Money.ca study revealed significant financial challenges immigrants in Canada face, including struggles with credit, money management and access to affordable housing. The survey gathered responses from 1,200 participants, offering an in-depth look at the obstacles new Canadians must navigate as they adapt to the country’s financial landscape.

“Financial literacy is not just about numbers; it is about making informed decisions, building financial stability and improving quality of life,” says Romana King, senior finance editor at Money.ca. “This data highlights the lack of accessible and comprehensive financial education for new immigrants, across the country.”  

Here are some key findings.

Housing affordability remains a major hurdle  

11.9 per cent of new immigrants reported difficulties when trying to rent or buy a home. Contributing factors included lack of credit history (low or no credit scores), high rental prices, dependence on a guarantor and the need for large upfront payments. Many also encountered barriers such as racial discrimination, language challenges and the complexities of the rental process.

Financial management skills lacking for many  

Nearly one-third of immigrants rated their money management skills as “average” or “poor,” indicating a knowledge gap. While 62.67 per cent felt confident in their abilities, 31.67 per cent considered their skills “average,” and 5.66 per cent rated them as “poor” or “very poor.”

Credit scores impact access to financial products

A quarter of immigrants have credit scores below 670, hindering their access to affordable financial products, employment and housing.

Additionally, only 12.48 per cent of immigrants knew that their credit score could impact their ability to rent a home. Gaps in understanding debt repayment, investing, and taxation were also prevalent.

“Achieving milestone goals, like finding housing in a new home country, requires access to helpful financial tools and products. From our research, it’s clear that new immigrants don’t have uniform access to these products or to information that can help them make informed decisions,” explains King. “This is a problem for all Canadians and a reason why we need to prioritize financial education to bridge gaps and foster a financially inclusive society.”

Despite gaining momentum in June, after the Bank of Canada’s rate cut that month, activity in Canada’s housing market paused in July.

Last month, home sales dipped 0.7 per cent on a month-over-month basis, reversing a small portion of June’s post-first rate cut gains. There’s a likelihood of further rate cuts in the next interest rate decision with the pace of future policy likely easing.

Expectations of further policy easing and more rate cuts to come

It’s clear that we may take a while to return to the COVID era when home sales peaked in January 2021 — their highest peak since January 2009, reaching approximately 64,000 sales. Despite the 0.7 per cent drop in sales, there’s a positive side to this as sales remain close to the recorded level from June.

But after the Bank of Canada announced a second rate cut of 4.5 per cent on July 24, there have been growing expectations of further policy easing with markets anticipating additional cuts as we head into fall.

It’s good news that despite the slight dip in July, our actual monthly activity was still 4.8 per cent higher than in July 2023. As well, the number of newly listed properties increased by 0.9 per cent month-over-month with Calgary seeing a notable boost in supply.

The Home Price Index rose by 0.2 per cent from June to July, although prices remained 3.9 per cent lower than in June 2023. The national average sale price was virtually unchanged — dipping just 0.2 per cent year-over-year to $1,667,317.

A balanced market with potential for continued downward price pressure — fall will be oversupplied

Canada’s market is pretty much balanced at this point, steadily at just over four months of inventory and just over 50 per cent sales-to-new-listing ratios. This can result in continued downward pressure on prices.

All of this is correlated to the fact that national new listings inventory continued to climb in July, which is typically considered one of the slowest periods for new listings. Looking ahead into fall, there will be an oversupplied market.

Alberta and Ontario: Stabilized

The biggest price increase was observed in Edmonton and Hamilton-Burlington, whereas Calgary and Toronto both witnessed the largest average price increase, which levelled one another out. This has resulted in Alberta and Ontario stabilizing in terms of the provincial average home sales price trend over the last several months.

Interestingly enough, despite having the biggest decrease in average price, Calgary had the most number of properties listed, which contributed to the increase of 0.9 per cent of the national average. 

Source: Wowa.ca

Keeping an eye on these developments will be critical for understanding what’s in store for the industry this fall and beyond, and for helping us advise our clients well.

Renting in Canada today can be challenging, but some cities are making it easier with a perfect blend of affordability, quality of life and community. Point2 identified the best cities for renters by analyzing 24 metrics across these areas, ranking Canada’s 100 largest cities.

These cities offer the best of all worlds for renters

In these top-ranking cities, renters can enjoy a well-balanced lifestyle without feeling like they’re in limbo until they can buy a home. Seven cities in Quebec and Cape Breton, Nova Scotia, boast the lowest average rents, all under $1,000, making them ideal for those seeking affordability.

Meanwhile, cities like Toronto, Oakville and Montreal have the largest inventories of rental homes, offering plenty of options, while the highest number of new rental unit starts are found in North Vancouver, B.C.

St. John’s, Newfoundland emerges as a standout city, striking the right balance between economic opportunity and vibrant community life. Cities in Quebec dominate the rankings, with Sherbrooke, Quebec City and others offering the most satisfying renter lifestyles, where tenants thrive rather than just making do.

Economy & housing hotspots: Quebec renters for the win

In terms of economic and housing conditions, 18 out of 19 Quebec cities lead the pack, highlighting their exceptional quality of life for renters.

Wood Buffalo, Alberta, also shines as an affordability haven, where nearly 83 per cent of renters spend less than 30 per cent of their income on housing costs.

Best spots for quality of life: Quebec & Ontario

Quality of life is crucial for renters, and factors like safety, walkability and access to green spaces make British Columbia and Ontario stand out. Vancouver and North Vancouver are praised for their walkability, while Caledon, Ont., boasts the highest greenness score.

The least stressed renters are found where life feels the most comfortable: St. John’s, Saskatoon and Oshawa.

Connecting to community: Victoria, B.C. takes first place

Community connections are vital, and Victoria, B.C., leads in this category with high scores for access to restaurants, museums and educational opportunities. Each province has cities that excel in building a strong sense of community, proving that renters can find a fulfilling lifestyle across Canada.

Review the full report here.

It’s no surprise Toronto’s housing market is reaching critical levels as the rising cost of living, high rental rates, a shortage of construction workers and the city’s growing population are exacerbating the imbalance between supply and demand.

Toronto is experiencing a surge in condominium listings, but few highlight that the suites are primarily small and not fit for family living. According to the Toronto Regional Real Estate Board (TRREB)’s June 2024 market watch data, listings for units in the 500- to 599-square-foot range soared by 50 per cent compared to last year.

Are Torontonians being heard?

Unfortunately, family-sized condominiums make up only about 10 per cent of the market, despite a growing and pressing demand from families. This shortage of larger, multi-bedroom suites designed for families and multigenerational living leaves many buyers, particularly those seeking homes that accommodate extended families, underserved and frustrated. This begs the question: when it comes to housing supply, are Torontonians being heard?

In April, we conducted a survey with members of the Angus Reid forum to capture what Torontonians are feeling about Toronto condominiums, and the results were illuminating. Almost half of respondents (47 per cent) see the potential for condominiums to be their long-term homes, and this statement is echoed strongly by current condominium dwellers, with 71 per cent expressing confidence in condominium living.

However, despite the increase in positive outlook, a staggering 93 per cent of respondents believe that Toronto needs better-built condominiums that suit people’s lifestyle needs, and nearly four in five respondents think that most Toronto condominium units are poorly constructed, indicating dissatisfaction with the current landscape.

Market caters to a misguided notion of “investor” instead of “end-user” condominiums

For condominium developers like us, this disconnect between what’s available in the market and what Torontonians need and want is strikingly clear. For far too long the market has catered to a misguided notion of what “investor”-focused condominiums are, rather than “end-user” condominiums.

This belief has been that investor buyers are predominantly interested in smaller units.

We believe all condominiums should be end-user-focused, and by meeting the demands of end-users, they become a good investment as well. This notion of catering to investors has led the market with an overwhelming supply of small units that many do not deem as viable homes.

Understanding and responding to Torontonians’ housing needs

A home should inspire pride and satisfaction. It should not be a compromise driven by convenience. Torontonians need not settle for underwhelming condominium developments with small suite layouts and poor build quality. Developers need to listen and create homes that meet the real needs and aspirations of the people, rather than simply adding more shoebox units to Toronto’s already imbalanced housing stock.

All of this just scratches the surface of the issue. Beyond size alone, developers bear the responsibility to construct sustainable, high-quality homes that meet people’s expectations. Much of today’s condominium stock lacks the thoughtful architecture, quality and design necessary to make condominiums both a comfortable and enjoyable home for everyone.

We’ve all heard the same story from our friends who live in condominiums: “I can hear my neighbours,” “The wait time for the elevators is far too long,” and so on. It’s really no wonder that more than 34 per cent of Torontonians believe that owning a condominium is like owning a box in the sky, but it doesn’t have to be that way.

Liveability above all: Condominium developers need to keep quality at the core

The growing dissatisfaction among condominium owners suggests that we need to make a drastic change in what we’re building and how we’re building it.

Developers must shift their focus to quality and liveability. This means designing homes that people are proud to own and live in, with the space, comfort and amenities that support a high quality of life, creating sustainable, vertical urban environments for people of all ages and life stages. We need to build condominiums that make people want to live in Toronto and enjoy everything that our beautiful city has to offer.

Bridging the gap is a developer’s responsibility

Toronto’s housing crisis requires an approach that addresses both the quantity and quality of homes and developers have a crucial responsibility in this. The solution isn’t just about building more units; it’s about building the right kinds of homes.

Only by closing this gap between what’s available and what’s needed can we hope to resolve the crisis and create a city where everyone feels at home. 

There’s speculation that Canada’s housing market is headed in a direction that will land us in a foul-up similar to much of Europe, with housing prices so out of reach that many people will never be able to afford a home unless they inherit one.

In a country like ours, recognized globally for its opportunities, this harsh forecast comes as a shock. But experts aren’t denying that it’s a possibility.

The housing supply crisis’ magnitude

“It’s a valid question,” says Kevin Hughes, deputy chief economist with the Canada Mortgage and Housing Corporation (CMHC). “Housing affordability and the housing crisis have been in the news for several years now.”

To get an idea of the magnitude of the housing supply crisis, CMHC recently updated its Supply Gaps Estimate report in hopes of determining how many housing units beyond current trends would need to be built between now and 2030 to restore affordability. The number CMHC came up with is 3.5 million.

“That’s a lot,” Hughes stresses. “I’m not saying it’s a realistic goal. But it’s what we’re looking at.”

It would in fact be an unprecedented boost in construction, which would come at what many consider an unacceptable societal cost, majorly stressing the system and creating countless spin-off issues around infrastructure, traffic and the environment.  “We can’t look at housing in isolation of these other factors,” Hughes asserts.   

What’s realistic?

Reading between the lines, such an extreme level of supply may very well not be achievable, despite ongoing government initiatives at all levels, including the recent federal budget, which lays out a plan to unlock 3.87 million new homes by 2031. 

According to the CMHC report, Ontario and British Columbia continue to be Canada’s least affordable housing markets, with the lion’s share of the housing supply gap. As financial pressure mounts for Canadian households in large centres battling high prices and insufficient supply, “more people get priced out and move elsewhere,” notes Hughes.

Increased population density is another path forward for cities in this situation, he explains. 

“There are roughly 4,000 people per square kilometre in Montreal, and Toronto is about the same. That can go up to 7,000 and above in some centres in Europe. The starkest comparison is Paris, where there are 20,000 people per square kilometre.”

Yowza. No wonder France is experiencing a major lack of housing supply.

Similar trends around the globe

In cities worldwide with similar issues around population and housing shortages, experts have observed that there tend to be:

• greater numbers of compact housing units being built,
• more focus on public transit over cars in the downtown core,
• increased cohabitation and communal living,
• more people commuting greater distances,
• a significant percentage of young people living at home who’d normally have moved out and
• mortgages being held for longer periods, even well past retirement.

All of these things are happening to some extent in Toronto, Vancouver and Canada’s other large, busy cities.

“We’re already seeing density increasing,” Hughes affirms.

Many possible future paths — including those like Europe’s

The True-North-strong-and-free is shifting to a new normal. Take the example of commuting. “Before, no one would travel an hour to get to work. Now no one gives it a second thought,” Hughes points out. “What people think of as ‘normal’ changes. When we think we’ve reached the limit, we realize we haven’t.” 

He continues: “The future in Canada will likely be a mixture. We’ll see more supply, more density and more people moving elsewhere. The variables aren’t mutually exclusive. It’s never all or nothing. It could go many ways with many variables. Nothing is inevitable and none of this will happen overnight. There are many possible paths.”

So yes, it seems that watching our housing market become more like Europe’s may be among these. 

“I’ve heard that,” confirms Valerie Dooley, a sales rep with Forest Hill Real Estate in Toronto who’s lived in Europe. “Multigenerational living is common in countries like Italy,“ she adds. “I think we’re starting to move more in the same direction.”

Another outlook

Despite perceptions to the contrary, Re/Max Canada president Christopher Alexander states that homeownership rates throughout much of Europe remain high, “upwards of 70 per cent in places like Malta, Estonia, Hungary and more.” (At the time of the last census in 2021, Canada’s homeownership rate sat slightly beneath that, at 66.5 per cent — a 20-year low.) 

Alexander insists that Canada still has a lot of affordable markets. “Many people tend to make affordability comparisons to our most expensive and sought-after cities when it’s not realistic for first-time homebuyers to expect to buy their dream homes at their first purchase,” he points out.

The best advice he can give homeowners, he says, is to get into the market within their means and start building equity. “That’s a surefire way to be able to eventually afford the home you want in the city you want.”

And in case of any lingering doubt, Alexander asserts that real estate in Canada continues to be a good investment.

“Canada is aggressively trying to build more homes and create greater affordability. I’m confident that homeownership will be in reach for most people for years to come.”

Over a dozen developers across the Waterloo region have collaborated to advocate for policies and initiatives to facilitate new home construction across the region.

The new Build Urban group represents a collective voice championing efficient land use, responsible growth and streamlined approval processes. It will work closely with municipal governments and stakeholders in the hope of overcoming barriers to construction and expediting the creation of new homes across the region.

So far, this has included key policy issues, including inclusionary zoning and planning frameworks around major transit station areas, with key insights, expertise and practical solutions to affordable housing, intensification and land use planning in the consultation process.

”We are in a housing crisis and collaboration between local governments, the development industry and other stakeholders is necessary to accelerate the construction of new homes,” says Melissa Durrell, CEO of Durrell Communications and spokesperson for Build Urban.

“The development industry possesses invaluable insights into the challenges and opportunities on the ground. By working together, we can find tangible solutions that address the urgent need for housing across our region.” 

Expected population growth means changes needed to increase homes available for residents

The region’s 10-year housing target is 70,000 new homes by 2031, which will require an average of just over 7,500 annual housing starts in Kitchener, Cambridge and Waterloo for the next eight years.

However, the tri-city municipalities have under 4,800 housing starts reported in 2023. The group notes that Waterloo’s expected population growth to 923,000 by 2051 means changes are needed to increase the number of homes available for residents. 

“Addressing the housing crisis requires an all-hands-on-deck approach,” says Durrell. “Build Urban is committed to helping the region reach these housing targets, providing expertise, evidence-based policy recommendations and support to ensure the necessary homes are built to accommodate a growing population.”

Earlier this week, the Government of Ontario released its 2024 provincial budget. The real estate industry weighs in.

“(The) 2024 Ontario Budget reaffirms the provincial government’s commitment to investing in building more homes, infrastructure and transit across the province. Ontario realtors commend the Province’s $190 billion investment to expand critical infrastructure over the next decade, including highways, transit, homes and high-speed internet — necessary improvements to support new communities and economic growth,” says Tim Hudak, CEO of the Ontario Real Estate Association (OREA).

The Toronto Regional Real Estate Board (TRREB) says that Ontario’s housing affordability crisis leaves individuals and families on the sidelines of the Canadian dream of homeownership. “To reverse this trend, governments must prioritize bold policy changes that will speed up the building of thousands of new homes,” says TRREB president, Jennifer Pearce.

Working toward realtor-led solutions from OREA analysis

OREA reports it’s pleased to see some progress toward several realtor-led solutions from its recent Analysis of Ontario’s Efforts to Boost Housing Supply mentioned in the budget.

In addition to measures directly addressing housing, the budget also progresses on several long-standing infrastructure priorities for Ontario realtors critical to the province’s long-term economic success — including support for Ontario’s Ring of Fire region, protecting Toronto’s waterfront via the Port Lands Flood Protection Project and investment in transit to improve connectivity province-wide.

Legislation has “cut red tape and streamlined approvals”

TRREB has worked with the Ford Government and the Ontario real estate industry to introduce five pieces of legislation: More Homes, More Choice, More Homes Built Faster, Affordable Homes and Good Jobs, Helping Homebuyers Protecting Tenants and Strong Mayors Build Homes.

“Each of these acts has cut red tape and streamlined approvals to ensure the Greater Golden Horseshoe can meet the housing supply targets. We will continue to take action and work with policymakers to ensure homeownership and rental properties are affordable in our region for future generations,” says Pearce.

“Good progress since 2018 … but government must keep foot on the gas” to hit housing goal

Hudak notes that the government has made good progress since 2018, and OREA is pleased with the additional steps in the right direction. However, he points out, “To reach the goal of building 1.5 million new homes by 2031, and bring affordability closer to home for Ontario families, the government must keep their foot on the gas and take bold action.”

He gives examples, including allowing water and wastewater services to be offered through a municipal services corporation, modernizing zoning to support commercial-to-residential conversions and greater density along transit corridors and eliminating exclusionary zoning.

TRREB notes that Ontario is moving ahead with critical funding to connect developable land to water, sewer and other housing-enabling infrastructure. “This infrastructure funding will unlock thousands of new homes across the Greater Toronto Area,” says Pearce.

Modular and denser housing

Pearce indicates that the Province is following TRREB’s advice to go all-in on modular housing. “Modular homes are built quickly and are a cost-effective option that will help Ontario meet its housing supply targets,” she says. “The budget signals the province’s strong commitment to using modular housing and more innovative technologies to help solve the housing affordability crisis.”

Hudak notes that building more homes on existing properties is essential to unlocking affordable homeownership. “Several municipalities, including Toronto, London and Barrie, have led the way by proactively enabling four units as-of-right per lot, and it remains a key recommendation of the Province’s own Housing Affordability Task Force.”

Tax policies may or may not meaningfully impact supply

Royal LePage says that the Province’s supply-side policies, aimed at boosting the much-needed inventory of homes, are a step in the right direction. For example, it commends the plan to enable Ontario municipalities to lower property taxes on new multi-residential rental properties — provided that municipalities take advantage of the initiative.

However, the company says the decision to expand municipal powers to impose vacant home and speculation taxes is unlikely to make a meaningful impact on supply, as evidenced by existing tax programs in other cities in Canada.

“Today’s Ontario Budget is a step in the right direction, and Ontario realtors thank Finance Minister Peter Bethlenfalvy and the Ford Government for putting forward a strong fiscal foundation,” says Hudak.

Likewise, Pearce notes that the budget release “provides critical support to the province’s effort to save the Canadian dream of homeownership.”

Canada’s primary rental market is facing major challenges, as large demand continues to outpace available supply.

This has weakened affordability and caused record-low rental vacancy rates, as indicated in Canada Mortgage and Housing Corporation (CMHC)’s latest Rental Market Report (RMR).

“Young families are struggling to find places to live not just for ownership but also to rent”

Dean Artenosi, realtor, author and co-owner of Coldwell Banker The Real Estate Centre Brokerage in Newmarket, Ontario, reviewed the RMR, and what stands out most to him is the substantial increase in rental rates for turnover two-bedroom units.

“This is telling us that young families are especially struggling to find housing and are prepared to pay for larger rent increases, as high as 40 per cent in cities like Toronto. Young families are struggling to find places to live not just for ownership but also to rent. Smaller units are being developed in new sites is the norm.”

Artenosi explains that on one of his sites, units are as small as 365 square feet. “It costs more to build smaller units, more kitchens, bathrooms, etc., but the attractive part is the price point.”

What can government do?

Artenosi feels that governments need to start finding ways and providing incentives for developers to build large units.

“Perhaps it means lowering development charges to assist in bringing the price points down. Perhaps there are other tax incentives for two-bedroom units, like larger HST rebates.”

He says that governments should also find ways to speed up the development approval process, pointing out that often, a zoning submission involves various departments (engineering, traffic, environmental, etc.) making comments on a new development proposal and they “get tunnel vision on their part in the commentary process, often delaying approvals from going forward efficiently.”

Consider the big picture and compromise

These departments need to be mindful of the bigger picture, Artenosi maintains. He feels departments should work together for the common good of planning and development and providing more housing. 

“Traffic, engineering and landscape will always have challenges that can always be addressed with compromise.”

Artenosi suggests enforcing a time frame for each department to provide comments, so the approval process and departments have a sense of urgency.

Create a process with city planners in “a mindset of making things happen”

He points out that some municipalities create a central submission process to receive and address comments, usually through the city planner on file.

“Allow departments and developers to communicate directly, address comments immediately and obtain sign-off directly with the department so that matters can get addressed quickly instead of waiting for circulation through a central point of contact,” he suggests.

Artenosi believes the city planner on file for new redevelopment projects should be proactive in addressing matters by bringing departments and developers together and assisting in solutions with both parties. “They need to act as general managers and oversee an efficient approval process. It’s a mindset of making things happen.”

Realtors can do more

Artenosi is a firm believer in realtors playing a vital part in the affordability crisis. When he began his career, he specialized in turning renters into homeowners, often finding creative solutions for families to get into homes and afford to keep them.

“In 1996, if your home had an existing apartment prior to (a certain) date, then you could get the basement retrofitted by the fire marshal and legalize the apartment with retrofit fire codes. This would be known as a legal non-conforming use.

I took advantage of this opportunity for young families and not only sold homes with basement apartments in existence prior to the date, but I oversaw the legalization for these secondary units.” He dealt with the fire marshal, handled the inspections, oversaw the renovations and found new tenants for homeowners.

“Today, Bill 23 allows for three auxiliary units in detached homes. You have to obtain permits and often there are criteria to do so with the municipalities,” Artenosi explains. “Realtors should not just sell the idea but rather go one step further and assist clients in this process even after the sale.”

Other parties can do more

Furthermore, Artenosi thinks the CMHC, banks and appraisers should allow for auxiliary units and projected revenue that can be earned from these units to be counted in the approval process for new buyers.

“This will allow new potential purchasers to count forecasted (auxiliary unit) revenue towards their total debt servicing ratios and gross debt servicing ratios. Often, they aren’t permitted to count this because (the units) are deemed illegal or, if they’re legal they only allow for 50 per cent of the income to be permitted.

If the potential income from a basement dwelling or auxiliary unit covers 50 per cent of the mortgage payment, then why not allow 100 per cent of the forecasted income to count towards the qualification policies to obtain the mortgage?”

Opportunity for an improved Purchase Plus Improvements program

Artenosi also notes the CMHC’s program, Purchase Plus Improvements, which he utilized often in his earlier days of turning renters into homeowners. “The cost of any renovations can be added to the purchase price and the purchase plus the improvement amount can be financed together as one mortgage,” he explains.

Currently, secondary apartments aren’t allowed to be created through the program. But, he believes the CMHC should use the program to 1) allow for its scope to include creating additional auxiliary units in homes, and 2) allow the forecasted revenue to count for young families in their mortgage qualification criteria.

“It can be a condition of the program that the holdback for renovation monies will only be released if the municipality approves of the unit or an occupancy permit is provided for the additional unit.

Municipalities should not make the registrations or approval process cumbersome, lengthy or costly to allow new families to utilize what Bill 23 is intended to do — provide more housing for Ontarians and Canadians. CHMC’s mandate is to house Canadians.”