Rising Concerns Over Slowing Housing Construction

Ottawa, ON – Canada’s housing shortage has been a growing concern, and recent developments suggest the situation is deteriorating. Amidst ongoing debates, a Conservative Press Release has thrown a spotlight on the issue, pointing fingers at the current administration under Prime Minister Justin Trudeau for the worsening crisis in housing construction.

The housing crisis in Thunder Bay has been noted as one of the factors behind the growing number of homeless encampments in the city. In 2023, the update provided to the Thunder Bay City Council indicated that the city’s homelessness strategy had connected only 13 people with housing, a significant decrease from over 50 individuals who were housed in the previous year, 2022. This decline has been attributed to increased numbers of people in encampments and low housing availability. The current year’s efforts are challenged by the housing system’s capacity issues, with nearly 100 individuals placed on community housing waitlists

Statistics Indicate a Decline in Housing Construction

A recent report from Statistics Canada has highlighted a significant downturn in the construction of new housing. Compared to last year, there has been a 9.8 percent drop in the number of units permitted for residential construction. This decline becomes even more pronounced against the backdrop of 2021 figures, showing a 14.5 percent decrease. These numbers paint a concerning picture of the housing landscape in Canada, signalling a scarcity of affordable housing options.

Major Cities Hit Hard by the Downturn

The problem is particularly acute in major urban centers like Vancouver and Toronto. Vancouver saw a 17 percent decrease in housing starts on a seasonal basis in October, while Toronto experienced a 10 percent drop from the same period last year. These figures are part of a broader national trend, with an 8 percent decrease in housing starts across Canada in September 2023 compared to the previous year.

Criticism of the Trudeau Government’s Approach

The Conservatives are critical of the Trudeau government’s handling of the housing crisis.

Despite promises to increase home construction, the reality appears to be a deepening crisis. The Conservatives accuse the Trudeau government, particularly the housing minister, of failing to understand the gravity of the situation, criticizing their reliance on announcements and vague promises instead of concrete action.

Calls for Policy Change and Action

The Conservatives assert that the Trudeau government has not effectively tackled the bureaucratic and regulatory obstacles that hinder housing construction in major cities. In contrast, the Conservatives propose a different approach, pledging to remove these gatekeepers and incentivize cities to build the necessary homes, focusing on affordability for Canadians.