As opposed to new taxes, housing policies with greater scope and powers are actually the most effective solutions for the long-running affordability crisis in Canada’s red-hot real estate markets, according to a major real estate firm.
In a July 28 press release, Royal Pacific Realty Group stated that the government should focus on ensuring that ownership is possible even for first-time buyers by instituting “comprehensive housing policies which will increase the supply of more affordable homes.”
“The government needs to increase the supply of medium-density, ground-oriented family housing,” Royal Pacific vice president and general manager Andrew Peck said in the news release.
One effective way that governments can go about this is promoting the development of high-density, low-cost family homes via financial incentives.
“Our realtors have clients desperately looking for townhomes. If the government gave municipalities a financial incentive for each townhouse built, municipalities would increase their efforts to rezone property,” Peck stated. “Builders would build more townhomes and find eager buyers.”
The executive added that while it does exist on some level, the oft-talked about competition between domestic and foreign buyers is not the fundamental problem in Canada’s red-hot real estate markets.
“The first hurdle is saving a down payment in a region where incomes continue to lag far behind home prices. The second hurdle is finding an affordable home in a market where demand for lower priced units far exceeds supply,” Peck explained.
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