Policy & InfrastructureZoning Deregulation Won't Solve the Housing Crisis – Canadian Dimension

Zoning Deregulation Won’t Solve the Housing Crisis – Canadian Dimension

The Changing Landscape of Urban Development in Canada: A Community Perspective

A Once-Thriving Garden in Strathearn

In the heart of Edmonton’s Strathearn neighborhood, a community garden flourished at the corner of 89th Street and 92nd Avenue, bringing together residents in a seasonal ritual of planting, nurturing, and harvesting. Springtime saw rows of root vegetables and tomatoes thriving in repurposed tires, while rain barrels gathered water to sustain this community endeavor. However, tragedy struck last year when the garden was uprooted to make way for an eight-unit row house as part of a development led by local developer Platinum Living. Sold for nearly $600,000, the land now bears little resemblance to the communal garden that once symbolized neighborly cooperation and sustainability.

The Push for Deregulated Zoning

The rapid removal of the garden, executed without public debate, reflects a broader trend across Canada, where recent policies prioritize development over community needs. Local governments are under pressure to restructure zoning bylaws in exchange for federal funding. The government’s motivation for such measures, particularly under the watch of former Housing Minister Sean Fraser, was framed as an innovative solution to address the housing crisis: a shift towards multifamily units to alleviate skyrocketing prices and provide more homes for Canadians.

Cities across the nation are responding to this call, given that existing zoning laws in Canada have historically favored single-family detached homes. In cities like Toronto, where more than 60% of land is exclusively zoned for such homes, and in Edmonton and Calgary, where this figure reaches 70%, there is a pressing need for options beyond traditional housing.

The Promise of Zoning Reform

Proponents of zoning reform argue that revising municipal regulations will allow for a more efficient use of urban land and facilitate the construction of a diverse range of housing options. Observers cite international examples where successful adjustments to land-use laws have resulted in denser, more affordable living spaces. Right-leaning think tanks, such as the Fraser Institute, have championed these ideas, urging Canadian lawmakers to follow the lead of countries like France and New Zealand, where modifying zoning laws accompanied by state intervention has proven beneficial.

For instance, in New Zealand, a government agency holds significant residential properties, directly addressing affordability. France has enforced municipal quotas for affordable housing, incentivizing local governments to focus on community needs. Meanwhile, Japan’s rigorous regulations have kept housing finances under control, ensuring that renters have access to socially sustainable rates.

The Reality of Canada’s Zoning Context

Despite the optimism surrounding these zoning reforms, Canada’s approach significantly diverges from its international counterparts. Lacking a robust national public housing system and a comprehensive housing benefit, Canada has instead relied heavily on private sector solutions. Unfortunately, the private market often fails to deliver affordable housing, driven predominantly by the potential for maximal profits rather than community needs.

Cities like Toronto and Edmonton have begun to embrace as-of-right zoning, granting developers the ability to build mid-rise homes without seeking further permits. However, this shift has raised concerns that allowing unfettered development could exacerbate the existing housing crisis rather than mitigate it.

The Potential Pitfalls of Deregulation

The cautionary example of Oregon provides insight into the possible outcomes of Canadian zoning reforms. After the state ended single-family zoning in 2019 without implementing any complementary market interventions, housing prices soared by over 25% in just five years. This scenario serves as a stark reminder that deregulation does not guarantee increased affordability; rather, it can lead to disproportionate advantages for developers, pushing out low-income residents and exacerbating the existing crisis.

As expressed in a thought-provoking commentary, the need for zoning reform in Canada is urgent, yet it also poses significant risks. Solutions must balance the drive towards growth with the social responsibility to protect low-income families and maintain affordable housing options.

A Path Forward

To truly enact meaningful changes in urban development, Canadian policymakers must prioritize a holistic approach that blends deregulation with the strategic interventions seen in other successful international models. This would entail investment in public housing, subsidies for low-income renters, and regulations aimed at keeping property speculation in check.

Zoning bylaws form the foundation upon which cities develop; they determine what gets built and where. Unfortunately, as we shift more power to the private sector, local communities may risk losing control over their living environments. The current approach to zoning reform is a continuation of neoliberal policies that do not adequately address the multifaceted nature of the housing crisis.

Conclusion

As the landscape of urban development continues to evolve, it remains imperative for all stakeholders—local governments, residents, and policymakers—to engage in open dialogue about the future of our communities. The fate of neighborhoods like Strathearn is not merely about land and buildings; it is intertwined with the preservation of communal bonds and the principles of shared prosperity. Sustainable urban development should ultimately serve the interests of people, ensuring every Canadian has access to safe, affordable housing in a vibrant and thriving community.


James Hardwick is a writer and community advocate with a decade of experience in supporting marginalized populations across Canada.


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