I must admit, I was not so pleasantly surprised when CPC MP Pierre Poilievre tweeted an article from the Globe and Mail this past week sounding alarm bells over Ottawa’s next push on ‘green homes.’ That being, you would require an energy audit before you can actually sell your home..Housing and consumer choice are two things very close to me and I’ve been ringing the alarm bells for quite a few years on this and the National Energy code. For thosewho don’t know what this is, “The National Energy Code of Canada for Buildings” is a construction code that regulates the energy efficiency of all new buildings being constructed..So why the alarm bells? Here are a few reasons..The International Monetary Fund (IMF) identified in 2021 that Canada’s housing stock was over one million homes short of where it should be based on our population. To put that in perspective, that’s the equivalent of two Calgarys that we’re apparently short. .Canada housing costs have spiraled upward in the past two years to the point we now lead all G7 countries in the ‘price growth category’ in the world. In some instances, we’re up over 30% in certain markets in two years. This marks the worst affordability since the mid-’90s..In the last federal election, the Liberals, the Conservatives, and the NDP all introduced policies to address housing affordability issues in Canada. While they may be well-meaning, why should one billion dollars and more be paid by all Canadians to address this issue? It sounds like the infamous CBC funding..And, why then are we introducing a National Energy code to again increase the cost of housing? It’s baffling to me! But don’t get me wrong, I want to leave a better world for the next generation, but this constant push towards ‘Green policies’ is exhausting and in all honestly, it’s BS..We’ve crunched the numbers under such policies from a new home perspective and the additional cost on an average 2000 sq ft home in Calgary would be $40,000 more. If amortized over 25 years assuming a 3% rate, it will really cost the consumer almost $60,000. How is that addressing affordability? It’s not, it’s fulfilling an ideological green target that most Canadians weren’t asked if they ever wanted to achieve..I’ve attended several seminars and discussions on this, and while the people leading them are well-intentioned, the eventual monetary costs never really cross their minds. I’ve heard this described as “a bold vision of leading the world in housing.” Then there’s my favorite “you can’t compare the costs when it comes to the environment.” Oh yes I can, and will as an advocate for the consumer!.Not all my colleagues agree with my view on this, but if the end goal is to reduce GHG emissions, then a significant tax credit for older more inefficient houses would more fairly resolve the Paris Accord targets by the Trudeau government deadline of 2030. It would bolster the annual $50 billion-plus renovation market in Canada while adding to the federal coffers..You may have heard some of my colleagues say that implementation is virtually the same cost. It is not! At least it’s not without the federal, provincial, and in certain cases municipal subsidies that are needed to balance out the costs to the end-user. So, in essence, your tax dollars are being used to subsidize this nice idea. Sound familiar?.Now, we’re talking about mandatory energy-performance audits of residential homes before the point of sale. Some municipalities in BC have piloted these programs to incentivize energy-saving upgrades and let purchasers know what energy bills they will face. So, will that devalue my used home? What if I can’t afford the upgrades? Who sets the standard for ‘Energy Efficiency?’ Will it trigger mandatory renovations of existing buildings if these standards aren’t met? So many questions, with no answers..And here’s another big one. Will this affect my mortgage? Yes, of course it will eventually affect your mortgage. Canadian Mortgage and Housing Corporation (CMHC) has already indicated this labeling program will affect the mortgage rate you receive. Again, I ask: How is this affordable?.Supposedly, there is a national housing crisis in Canada. The last thing Canadians need is false promises from government and layers of policies related to buying a home. What we need now is government to get the hell out of the way and let the free market build what’s required to fill the gap without new and ideological policies or codes getting in the way. We need to catch up on what they caused in the first place and more affordability will naturally follow. .Shane Wenzel is the president and namesake of the Shane Homes Group of Companies..,.Twitter, Linkedin, Instagram, and Youtube: @shanewenzel
I must admit, I was not so pleasantly surprised when CPC MP Pierre Poilievre tweeted an article from the Globe and Mail this past week sounding alarm bells over Ottawa’s next push on ‘green homes.’ That being, you would require an energy audit before you can actually sell your home..Housing and consumer choice are two things very close to me and I’ve been ringing the alarm bells for quite a few years on this and the National Energy code. For thosewho don’t know what this is, “The National Energy Code of Canada for Buildings” is a construction code that regulates the energy efficiency of all new buildings being constructed..So why the alarm bells? Here are a few reasons..The International Monetary Fund (IMF) identified in 2021 that Canada’s housing stock was over one million homes short of where it should be based on our population. To put that in perspective, that’s the equivalent of two Calgarys that we’re apparently short. .Canada housing costs have spiraled upward in the past two years to the point we now lead all G7 countries in the ‘price growth category’ in the world. In some instances, we’re up over 30% in certain markets in two years. This marks the worst affordability since the mid-’90s..In the last federal election, the Liberals, the Conservatives, and the NDP all introduced policies to address housing affordability issues in Canada. While they may be well-meaning, why should one billion dollars and more be paid by all Canadians to address this issue? It sounds like the infamous CBC funding..And, why then are we introducing a National Energy code to again increase the cost of housing? It’s baffling to me! But don’t get me wrong, I want to leave a better world for the next generation, but this constant push towards ‘Green policies’ is exhausting and in all honestly, it’s BS..We’ve crunched the numbers under such policies from a new home perspective and the additional cost on an average 2000 sq ft home in Calgary would be $40,000 more. If amortized over 25 years assuming a 3% rate, it will really cost the consumer almost $60,000. How is that addressing affordability? It’s not, it’s fulfilling an ideological green target that most Canadians weren’t asked if they ever wanted to achieve..I’ve attended several seminars and discussions on this, and while the people leading them are well-intentioned, the eventual monetary costs never really cross their minds. I’ve heard this described as “a bold vision of leading the world in housing.” Then there’s my favorite “you can’t compare the costs when it comes to the environment.” Oh yes I can, and will as an advocate for the consumer!.Not all my colleagues agree with my view on this, but if the end goal is to reduce GHG emissions, then a significant tax credit for older more inefficient houses would more fairly resolve the Paris Accord targets by the Trudeau government deadline of 2030. It would bolster the annual $50 billion-plus renovation market in Canada while adding to the federal coffers..You may have heard some of my colleagues say that implementation is virtually the same cost. It is not! At least it’s not without the federal, provincial, and in certain cases municipal subsidies that are needed to balance out the costs to the end-user. So, in essence, your tax dollars are being used to subsidize this nice idea. Sound familiar?.Now, we’re talking about mandatory energy-performance audits of residential homes before the point of sale. Some municipalities in BC have piloted these programs to incentivize energy-saving upgrades and let purchasers know what energy bills they will face. So, will that devalue my used home? What if I can’t afford the upgrades? Who sets the standard for ‘Energy Efficiency?’ Will it trigger mandatory renovations of existing buildings if these standards aren’t met? So many questions, with no answers..And here’s another big one. Will this affect my mortgage? Yes, of course it will eventually affect your mortgage. Canadian Mortgage and Housing Corporation (CMHC) has already indicated this labeling program will affect the mortgage rate you receive. Again, I ask: How is this affordable?.Supposedly, there is a national housing crisis in Canada. The last thing Canadians need is false promises from government and layers of policies related to buying a home. What we need now is government to get the hell out of the way and let the free market build what’s required to fill the gap without new and ideological policies or codes getting in the way. We need to catch up on what they caused in the first place and more affordability will naturally follow. .Shane Wenzel is the president and namesake of the Shane Homes Group of Companies..,.Twitter, Linkedin, Instagram, and Youtube: @shanewenzel
