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Housing Investments Planned for Upcoming Canadian Federal Budget
Sean Fraser, Canada's Housing Minister, suggested on Monday that the national budget, expected to be presented in the following month, may promise billions of dollars in investments for residential construction and affordable housing initiatives.
Crunch in Canada's Housing Affordability
The fast-growing immigrant populace in Canada has exponentially exceeded the number of accessible accommodations, leading to a severe housing affordability crunch. The crunch is further fueled by steadfastly high inflation and peak interest rates over the past 22 years, contributing to soaring rent and mortgage fees.
"While I'm not at liberty to elaborate on the specifics of the coming federal budget, it's clear that major housing expenditures are required," Fraser claimed in an Ottawa housing conference.
Budget to Address Wide-Spectrum Housing Needs
Fraser noted that these funds would be employed for home construction and enhancement of low-cost housing initiatives. He made no explicit mention of the amounts to be allocated in the budget or how it would be divided.
He suggested that the allocation could be in the magnitude of billions, or even tens of billions, to aid the erecting of new homes. This substantial financial commitment would comprise of both direct expenditure and finance for low-cost housing projects.
Upcoming Budget Presentation
On April 16, Finance Minister Chrystia Freeland is slated to table her budget in Parliament.
With the affordability of housing becoming a crucial issue ahead of the election next year, Pierre Poilievre, Conservative Party leader and major political adversary of Prime Minister Justin Trudeau, has accused the governing Liberal party of causing the housing crisis.
Government Measures in Place
The government has retorted by implementing several initiatives to increase housing supply during the past year. However, it concedes that these measures won't yield immediate results.
Robert Hogue, RBC's assistant chief economist, estimates that to cater to the growing population, Canada would need to establish 315,000 new dwellings annually from now up to 2030. This figure is more than a third above the current pace of housing completions.
