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In Canada, the pervasive concern over skyrocketing housing costs, particularly among young individuals aiming to enter the housing market, remains a unifying issue among voters. With average home prices in major cities like Vancouver and Toronto surpassing $1 million, the affordability crisis extends beyond these urban centers to less expensive locales. While policymakers have endeavored to stimulate residential investment and foster housing development, evidenced by a record high of over 350,000 housing units under construction by the end of 2023, the anticipated solution has not yielded the desired outcomes.

Despite the surge in housing construction, the relentless pace of population growth, buoyed in part by high immigration levels, has perpetuated unattainable equilibrium in affordable housing. The exponential demand outpaces the supply, underscoring the inadequacy of merely bolstering construction efforts in mitigating the crisis. Addressing this multifaceted challenge necessitates a comprehensive overhaul of planning and housing policies at all levels of government, as they continue to fall short in providing accessible shelter for millions of Canadians.

The housing boom, predominantly concentrated in multifamily constructions like rental apartments and condominiums, fails to meet the aspirations of many Canadians seeking single-family detached homes. Restrictive zoning regulations pose a significant obstacle to the development of ground-oriented homes, exacerbating the scarcity and inflating prices. To rectify these systemic issues and restore balance to the residential market, policymakers must advocate for a more aggressive approach to multifamily construction, curb speculative investments in the condo market, reassess immigration policies, and prioritize the relaxation of zoning restrictions to facilitate the construction of new homes. These measures are pivotal in fostering affordability and ensuring housing accessibility for future generations of Canadians.

Read the full article on: Financial Post