Housing: A Direct Federal Responsibility in Canada

Prime Minister Justin Trudeau’s recent assertion that "housing isn’t a primary federal responsibility" during a funding announcement in Hamilton has elicited considerable criticism. This statement stands in stark contrast to the growing belief among Canadians that the federal government has not adequately addressed the escalating housing crisis afflicting the nation. Current polls indicate that approximately 70% of Canadians feel the Liberal government is failing in this regard, underscoring the urgent need for a reevaluation of federal responsibilities in housing.

The Constitutional Context of Housing

While neither the 1867 Constitution Act nor the 1982 Charter of Rights and Freedoms explicitly designates housing as a responsibility of any government level, the rights enshrined in the Charter — including the rights to “life, liberty, and security of the person” — are inextricably linked to access to adequate housing. Furthermore, Canada’s commitment to various international covenants to uphold the right to housing reaffirms the government’s obligation to protect this fundamental need.

In 2019, under the current administration, Canada enshrined the right to housing in federal law. Despite this, the government has been slow to take responsibility for addressing housing needs, often engaging in what can be described as "ambiguity, turf guarding, buck passing, and finger-pointing." Recent instances, such as the response to refugee claimants in Toronto, have highlighted this concerning trend.

A Brief History of Federal Engagement in Housing

Historically, the federal government has played an active role in housing development. Post-World War II, through initiatives like the construction of Victory Houses, the government facilitated the creation of low-cost homes, employing procured land and industrialized production methods that enabled rapid assembly. Between the mid-1960s and mid-1980s, non-market housing represented 10-20% of new construction, supported through federal grants and partnerships with provincial and municipal governments.

However, this proactive approach sharply declined after 1992 when the federal government offloaded the responsibility for affordable housing onto the provinces. Consequently, the production of non-market housing diminished drastically, leading to the current housing crisis where average home prices have skyrocketed — from 2.5 times the average household income in 1980 to a staggering 8.8 times today.

Federal Leadership: Five Priorities Going Forward

With Sean Fraser now leading a newly combined Ministry of Housing, Infrastructure, and Communities, there is an opportunity for the federal government to reclaim its role in housing. Here are five priorities that could guide this renewed engagement:

1. Establish a Single Income-Based Definition of Affordable Housing: The government should return to a consistent definition of affordable housing, similar to the practice from the 1940s to 1990s, ensuring that programs reflect the real financial capabilities of households in need.

2. Delivery of Genuinely Affordable Housing: This commitment must include a fair share of Indigenous housing, necessitating cooperation from all three levels of government to provide land, grants, and financing for non-market housing providers.

3. Implement a Progressive Surtax on High-Value Homes: To support a revitalized National Housing Strategy, the federal government could impose a surtax on Canada’s most expensive homes or reform the capital gains tax exemption on principal residences.

4. Address the Needs of Growing Families: With Canada’s population expanding, it is vital that government policies facilitate the ability of middle-income families to afford homes in urban areas. This may involve taxation reforms and encouragement of long-term financing for rental housing.

5. Encourage Provincial and Municipal Engagement: The federal government should use conditional agreements for infrastructure funding to hold provinces and municipalities accountable, urging them to enhance welfare rates, minimum wages, and protections against evictions and rent increases.

Local Government Responsibilities

While the federal government must lead, provinces and municipal governments also play a critical role in addressing the housing crisis. Provincial welfare rates and minimum wages must align with housing costs to alleviate the strain on low-income families. Moreover, municipalities should revise zoning codes to accommodate multi-unit dwellings, and remove barriers that hinder the construction of affordable housing.

By fostering a collaborative approach, the various levels of government can converge on a holistic solution to the chronic housing issue that has plagued Canada for too long.

Conclusion

With the pressing need for affordable housing becoming ever more apparent, the federal government must step up and take a leading role. By prioritizing effective policies, adjusting existing frameworks, and fostering collaboration between different governmental levels, Canada can begin to address the housing crisis head-on. The time for decisive action is now — not just for the current population, but for the generations to come.