Housing Minister Ahmed Hussen said builders need to construct more homes but did not introduce any new proposals to address the housing supply issue.. House .According to Blacklock’s Reporter, builders and analysts appealed for a reduction in taxes and mandatory charges associated with new construction as a potential solution to boost the housing supply..“We need more housing supply in Canada,” Hussen told the Commons Public Accounts committee..“We have the fastest growing population in the G7. We have a very low housing supply of all types.”.According to a report by the Canada Mortgage and Housing Corporation (CMHC) released on June 23, it is estimated that Canada will have a shortage of approximately 3,500,000 new homes by the year 2030..This shortage is equivalent to over 440,000 homes every year. The average number of new homes being constructed annually is around 200,000..“On current trends, the housing stock increases from about 16 million in 2019 to over 18.6 million by 2030 for Canada,” said the report Canada’s Housing Supply Shortages: Estimating What is Needed to Solve Canada’s Housing Affordability Crisis by 2030..“We project that over 22 million units will be required to achieve affordability.”.“The private sector will be critical in addressing this supply shortfall,” wrote analysts..“For their part, governments can help by ensuring the regulatory process is as efficient as possible.”.“We need more supply,” said Hussen..One CMHC executive testified regulators alone could not solve the problem..“Do you have a plan to face this housing deficit?” asked Bloc Québécois MP Denis Trudel (Longueuil-St. Hubert, QC). .“Ninety-five percent of the housing in Canada is built by the private sector,” replied Nadine Leblanc, senior vice president of policy at CMHC..“When we talk about this target, collectively, we need to build together.”.On Thursday, the Canadian Home Builders' Association (CHBA) made a request to the Commons Finance committee, asking that taxes and charges on new construction should be reduced..“Governments need to stop adding costs to homes and instead need to do their part,” testified Kevin Lee, CHBA CEO..“We are in a construction slowdown thanks to the interest rate increases of last year.” .“As they rose, sales slowed to a trickle,” said Lee..“As a result, our Housing Market Index now suggests we could see as much as a 30% drop in housing starts which corresponds to other data we are collecting, like 23% of our members cancelling projects and some 59% expecting to build fewer homes this year. This is the opposite of what is needed.”.Lee’s statement matched the findings of Paul Sullivan, an analyst from British Columbia..Sullivan calculated how taxes and fees affect things..According to his calculations, when you buy a condominium worth $1.1 million in Vancouver, you also have to pay $327,565 for charges, fees, permits, and taxes imposed by the government at different levels (federal, provincial, and municipal)..“Despite rental vacancy rates that are chronically around 1% or less — a healthy vacancy rate is at least 3% — builders and renters see no relief on new taxes, fees or policies that deter rental investments,” wrote Sullivan.
