Poilievre plans to use money set aside in the Liberal’s Housing Accelerator Fund which he says has been ineffective.
Housing
Conservative leader Pierre Poilievre’s video on Canada’s housing crisis under Trudeau gov’t goes viral
From LifeSiteNews
‘Housing hell: How we got here and how we get out’ has been viewed more than four million times.
A video by Conservative Party of Canada (CPC) leader Pierre Poilievre exposing the country’s housing prices and supply crisis, which a taxpayer watchdog said is being fueled by high-interest rates from bad fiscal policy by Prime Minister Justin Trudeau’s government, has reached over 4 million views.
“Something new and strange has happened in Canada. Canada is sitting on probably one of the largest housing bubbles of all times, something we haven’t seen before,” Poilievre said in his 15-minute video titled Housing hell: How we got here and how we get out.
“An entire generation of youth now say they will never be able to afford a home. This is not normal for Canada.”
Housing hell: How we got here and how we get out. pic.twitter.com/vVLsXMVM35
— Pierre Poilievre (@PierrePoilievre) December 2, 2023
The video goes deep into Canada’s housing market and includes statistics on why it is in such a dire state. It currently has 4.2 million views on X (formerly Twitter) after it was released on December 2.
Poilievre documents in his video, using facts to back him up, that in the coming months and years “tens of thousands of Canadians could default on their mortgages” due to skyrocketing interest rates.
He noted how the “nightmare scenario” after “generations of affordable and stable Canadian home prices” means that 66% of a person’s average monthly income is to simply “make payments on the average single detached Canadian house.”
“Given that most of the remaining 34 percent of the family paycheck is taken out by taxes, there’s literally nothing left for food and recreation,” Poilievre noted.
Taxpayer watchdog says high house prices due to Trudeau’s out of ‘control’ government
Franco Terrazzano, federal director for the Canadian Taxpayers Federation (CTF), told LifeSiteNews that the reason house prices, along with everything else, are more expensive is due to Trudeau’s “out of control” governmental spending.
“Trudeau’s never-ending deficits and the hundreds of billions of dollars the Bank of Canada printed during the pandemic are driving up the cost of everything,” Terrazzano told LifeSiteNews.
“Life is more expensive because the cost of government is out of control.”
Terrazzano noted that governmental fiscal policy is making home prices more expensive and thus out of reach for most. He said what needs to happen is a reduction in red tape.
“Taxes and onerous government regulations are making homes more expensive,” Terrazzano told LifeSiteNews.
“If governments want to make homes more affordable, they would cut taxes and the red tape that makes it harder and more expensive to build homes.”
Terrazzano highlighted a report from the C.D. Howe Institute that shows the cost of excessive government regulations on home building.
As for Poilievre, he observed how it now would take a staggering 25 years just to save enough money to make a downpayment for a simple home in Toronto.
He continued, noting how newlyweds now on average pay $1,000 per month to rent a “single room in a townhouse that they share with two other couples.”
He also raised the issue of how 35-year-olds “live in their parent’s basements” and “rents are so high in Toronto that students live in homeless shelters.”
When it comes to middle-class workers, Poilievre emphasized how “people like nurses and carpenters now live in their vehicles.”
While housing falls primarily under provincial and municipal jurisdiction, some areas, such as interest rates, are directly influenced by the federal government.
House prices have shot up in Canada due to short supply in the market, and speculative buying and interest rates have risen to highs not seen for decades. As it stands, Canada’s interest rate sits at 5%. At this same time in 2021, interest rates were 0.25%.
This past Wednesday, the Bank of Canada decided to keep rates at 5% but did not rule out future rate increases, as it “is still concerned about risks to the outlook for inflation and remains prepared to raise the policy rate further if needed.”
Interestingly, Trudeau put out a video the same day as Poilievre that he said was to address housing challenges. This video only has 264,000 views, however.
Curiously, Poilievre made no mention of Canada’s high immigration levels, which critics say has put a strain on an already tight supply.
Maxime Bernier, leader of the People’s Party of Canada, has been one of the only party leaders to call out high immigration levels and their effects on housing.
Trudeau’s ‘money printing’ pouring fuel on ‘inflationary fire’
According to Poilievre in his video, in the past one could save enough to buy a house by their mid-20s but said this “changed” about “eight years ago” when Trudeau came to power.
“When the government borrows and spends, it builds up the goods we buy and the interest we pay. The Trudeau government has doubled Canada’s debt, adding more debt than all prime ministers combined. Our finance minister has conceded that this deficit spending pours fuel on the inflationary fire,” Poilievre said.
He observed how excessive money printing through a banking scheme called “quantitative easing” has only benefited well-connected banking insiders and financial institutions that are awash with money.
“In recent years, the Trudeau government spending has exploded, and they’ve been borrowing more than lenders will lend. So, the Bank of Canada has started creating the cash. The money supply has therefore grown eight times faster than the economy over the last three years,” Poilievre said.
“More money bidding on fewer goods, including fewer houses, equals higher prices.”
Poilievre ended his video by stating that the “good news is housing costs were not like this before Justin Trudeau.”
“And they won’t be like this after he’s gone,” he added.
He said that the solution, besides a change in leadership, is for all levels of government to work together to cut red tape and taxes to encourage the construction of new homes.
Under Trudeau, mainly due to excessive COVID money printing, inflation has skyrocketed.
A recent report from September 5 by Statistics Canada shows food prices are rising faster than headline inflation at a rate of between 10% and 18% per year.
Earlier this year, the Bank of Canada acknowledged that Trudeau’s federal “climate change” programs, which have been deemed “extreme” by some provincial leaders, are indeed helping to fuel inflation.
Economy
One Solution to Canada’s Housing Crisis: Move. Toronto loses nearly half million people to more affordable locations
From the Frontier Centre for Public Policy
By Wendell Cox
The largest CMA, Toronto, had by far the most significant net internal migration loss at 402,600, Montreal lost 162,700, and Vancouver lost 49,700.
Canadians are fleeing overpriced cities to find more affordable housing. And restrictive urban planning policies are to blame.
Canadians may be solving the housing crisis on their own by moving away from more expensive areas to areas where housing is much more affordable. This trend is highlighted in the latest internal migration data from Statistics Canada.
The data covers 167 areas comprising the entire nation, including Census Metropolitan Areas (CMAs), which have populations from 100,000 to seven million. It also includes the smaller Census Agglomerations (CAs), which have a core population of at least 10,000, as well as areas outside CMAs and CAs in each province and territory, which are referred to as “largely rural areas.”
Long-standing migration trends have been virtually reversed. Larger cities (CMAs) now see the highest loss of net internal migrants, while smaller cities (CAs) are experiencing solid gains. Between 2019 and 2023, Canada’s CMAs lost 273,800 net internal migrants to smaller areas, including CAs and largely rural areas. This contrasts sharply with the previous five-year period (2014 to 2018) when CMAs saw only a 1,000-person loss.
So, where did these people go? A significant portion – 108,100 – moved to CAs, which captured 39 per cent of the CMA losses. This is triple that of the previous five years (2014 through 2018).
However, the most notable shift occurred in largely rural areas, which gained 165,700 net internal migrants, representing 61 per cent of CMA losses. This is a dramatic increase compared to the 33,700 net loss in the previous five years.
Among the 167 areas, the migration data is stunning.
The areas experiencing the greatest net internal migration are outside CMAs and CAs. The largely rural area of Ontario saw the biggest gain, with a net increase of 78,300 people – nearly 40 times the number from the previous five years. Meanwhile, rural Quebec placed second, with a net gain of 76,200 people, more than 10 times the increase in the prior five years. The Calgary CMA ranked third (and first among CMAs) at 42,600, followed by the Ottawa Gatineau CMA (Ontario and Quebec) at 36,700 and the Oshawa CMA at 34,900.
The largest CMA, Toronto, had by far the most significant net internal migration loss at 402,600, Montreal lost 162,700, and Vancouver lost 49,700. Outside these CMAs, nearly all areas posted net gains.
People have also started moving to the Maritimes. The Halifax CMA tripled its previous gain (21,300). In New Brunswick, Moncton nearly quadrupled its gain (7,000). Modest gains were also made in Fredericton and Saint John as well as in Charlottetown in Prince Edward Island.
Meanwhile, housing affordability in Canada’s largest CMAs has become grim. Toronto’s median house price to median household income has doubled in less than two decades. Vancouver’s prices have tripled relative to incomes in five decades. Montreal’s house prices nearly doubled relative to incomes over two decades.
These CMAs (and others) have housing policies typical of the international planning orthodoxy, which seeks to make cities denser. In effect, they have declared war against “urban sprawl,” trying to stop any material expansion of urbanization. These urban containment policies, which include greenbelts, agricultural reserves, urban growth boundaries and compact city strategies, are associated with the worst housing affordability. Land prices are skewed upward throughout the market. Demand continues to increase ahead of incomes, but the supply of low-cost suburban land, so crucial to controlling costs, is frozen.
Regrettably, some areas where people have fled are also subject to urban containment and housing affordability has deteriorated rapidly. Between 2015 and 2022, prices in Ontario CMAs London, Guelph, Brantford and St. Catharines have about doubled. BC’s Fraser Valley and Vancouver Island have seen similar increases. Those moving to these areas are ahead financially, but the rapidly rising house prices are closing opportunities.
There are proposals to restore housing affordability, though none tackle the urban containment policies associated with the price increases. Indeed, we have not found a single metropolitan area where housing affordability has been restored with the market distortions of the intensity that have developed in Toronto, Vancouver and Montreal (not in our Demographia International Housing Affordability report or elsewhere). Such markets have become unsustainable for most new entrant households because they cannot afford to live there.
Housing is not a commodity. Households have varying preferences, from ground-oriented housing (detached and townhomes) to high-rise condos. Indeed, a growing body of literature associates detached housing with higher total fertility rates. According to Statistics Canada, Canadians have favoured lower densities for decades, a trend that continued through the 2021 Census, a trend that continued through the 2021 Census, according to Statistics Canada.
With governments (virtually around the world) failing to maintain stable and affordable housing markets, it’s not surprising people are taking matters into their own hands. Until fundamental reforms can be implemented in the most expensive markets, those seeking a better quality of life will have no choice but to leave.
First published in the Financial Post.
Wendell Cox is a senior fellow at the Frontier Centre for Public Policy and the author of Demographia International Housing Affordability.
Housing
Poilievre will cut sales tax on new homes under $1 Million saving tens of thousands
From a Conservative Party of Canada news release
In a video released Monday, Conservative Leader Pierre Poilievre has announced a plan to lower the cost of a new home’s worth under $1 million dollars.
Poilievre says a conservative government will axe the sales tax on new homes sold for less than $1 million.
That would cut the cost of an $800,000 home by $40,000 or a $500,000 home by $25,000.
Accordingly Poilievre says this will lead to the building of an extra 30,000 new homes every year.
The news could get even better as the PM hopeful says he’ll push provinces to drop their sales tax as well.
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