Canada aims to alleviate its housing shortage by leasing public land to developers for the construction of affordable houses, as unveiled by Prime Minister Justin Trudeau on Friday. The plan targets the construction of nearly 3.9 million houses by 2031, utilizing underutilized government-owned land, including abandoned industrial parks, defunct government company sites, and schools with low enrollment.
However, despite this initiative, the plan still falls short by 1.2 million units needed from 2023 to 2030, according to the national housing agency, Canada Mortgage and Housing Corp. The Liberal government, in response to the housing crisis, has announced a series of measures over the past two weeks, with further initiatives expected to be outlined in next week’s federal budget.
The surge in housing and rental prices has led Trudeau’s Liberals to lag behind the Conservatives in opinion polls ahead of an election due by October 2025.
Trudeau emphasized the impact of the plan on Canadians’ lives, stating, “It is a plan that is actually going to make a difference in the lives of Canadians.”
Housing Minister Sean Fraser outlined additional measures, including changes to capital-cost tax structures to incentivize institutional builders, proposals for extending low-cost loans, and combating mortgage fraud that artificially inflates housing costs.
Mike Moffatt of the Task Force for Housing and Climate emphasized the significant investment required, estimating close to C$2 trillion ($1.5 trillion) for achieving the government’s target of 3.9 million homes. He highlighted the need for clarity on costs and further details in the budget.
The housing shortage in Canada is attributed to rapid growth in the immigrant population, along with factors such as inflation and high interest rates. While housing largely falls under the jurisdiction of provinces and municipalities, Ottawa plays a role through policy measures and funding.