Frontier Centre for Public Policy
We should follow New Zealand on housing and free up more land for growth
From the Frontier Centre for Public Policy
By Wendell Cox
Attempts to contain ‘urban sprawl’ have driven land prices sky-high. It’s time to abandon densification strategies.
Not so long ago, house prices tended to be around three times household incomes in most housing markets in Canada, the U.S., the U.K., Ireland, Australia and New Zealand. But over the past half-century, many local and provincial governments have tried to stop the expansion of urban areas (so-called “sprawl”) by means of urban growth boundaries, greenbelts and other containment strategies.
Though pleasing to planners, the results have been disastrous for middle- and lower-income households, sending housing prices through the roof, lowering living standards and even increasing poverty. International research has associated urban containment with escalating the underlying price of land, not only on the urban fringe where the city meets rural areas, but also throughout the contained area.
Canada’s current housing affordability crisis is centred in “census metropolitan areas” that have tried containment. Vancouver, which routinely places second or third least affordable of 94 major metropolitan areas in the annual Demographia International Housing Affordability report, has experienced a tripling of house prices compared to incomes. In the third quarter of last year, the median house price was 12.3 times median household income. In less than two decades, the Toronto CMA has experienced a doubling of its house price/income ratio, to 9.3.
Not surprisingly, both CMAs are seeing huge net departures, principally to less expensive markets nearby, such as Kitchener-Waterloo, Guelph, London, Nanaimo, Chilliwack and Kelowna. But these areas are also experiencing vanishing affordability as they too impose Vancouver- and Toronto-like policies.
In recent years, Canadian governments have adopted densification strategies — on the assumption that making cities more crowded will restore housing affordability. But evidence of that is limited. Yonah Freemark of the Urban Institute characterizes the literature as indicating “that upzonings offer mixed success in terms of housing production, reduced costs, and social integration in impacted neighborhoods; outcomes depend on market demand, local context, housing types, and timing.”
Like Canada, New Zealand has seen its house prices grow much faster than household incomes, also mainly because of urban containment policies. Auckland routinely ranks as one of the world’s least affordable markets. But in what may be a watershed moment for housing policy worldwide, New Zealand’s recently elected coalition government is giving up on densification and instead, with its Going for Housing Growth program, is aiming at the heart of the issue by addressing the cost of land.
Under new proposals, local governments will be required to zone enough land for 30 years of projected growth and make it available for immediate development. According to the government, local governments’ deliberate decision to restrain growth on their fringes has “driven up the price of land, which has flowed through to house prices,” and it cites research indicating that “urban growth boundaries add NZ$600,000 (C$500,000) to the cost of land for houses in Auckland’s fringes.”
The new policy will rely on a 2020 act allowing public agencies and private developers to establish “Special Purpose Vehicles” — corporations established for financing housing-related infrastructure, with the costs to be repaid by homeowners over up to 50 years. This removes the infrastructure burden from governments, as has also been done in “municipal utility districts” (MUDs) in Texas and Colorado. MUDs are independent entities empowered to issue bonds and collect fees to finance and manage local infrastructure for new developments.
New Zealand’s government believes guaranteeing plentiful access to land will result in an increased supply “inside and at the edge of our cities … so that land prices are not inflated by artificial planning restrictions.” The same strategy could help here. Unlike most urban planners, most Canadians do not want higher population density. A 2019 survey of younger Canadian households by the Mustel Group and Sotheby’s found that on average across four metropolitan areas (Toronto, Montreal, Vancouver and Calgary) 83 per cent of such families preferred detached houses, though only 56 per cent had actually bought one.
Households that move from the big city to Kitchener-Waterloo, say, or Chilliwack not only want to save money, they also want more house and probably a yard. Detached housing predominates in these affordability sanctuaries, compared to the Vancouver and Toronto CMAs.
Urban planners continue to complain about urban expansion, but that is how organic urban growth occurs. Toronto and Vancouver show that the cost of taming expansion is unacceptably high: inflated house prices, higher rents and, for increasing numbers of people, poverty. It is time to prioritize the well-being of Canadian households, not urban planners.
Wendell Cox, a senior fellow at the Frontier Centre for Public Policy, is author of the Centre’s annual Demographia International Housing Affordability report.
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.
Frontier Centre for Public Policy
The Destructive Legacy of Gender Theory’s Popular Pioneer
From the Frontier Centre for Public Policy
By Lee Harding
The idea that gender is disconnected from sex was popularized by psychologist John Money. Perverted minds produce perverted ideas. Unfortunately, Money’s legacy of destruction continues.
The idea that sex drives come out of nowhere and have nothing to do with biology should be dismissed out of hand, given the countless generations of procreated human and even animal species. Yet, in 1961, Money claimed that “erotic outlook and orientation is an autonomous psychological phenomenon independent of genes and hormones.”
Money later said that “like hermaphrodites, all the human race follow the same pattern, namely, of psychological undifferentiation at birth.”
In other words, no one is born heterosexual, and there are no biology-based differences in how men and women act. By 1973, even Money had to acknowledge a wide body of research that showed “fetal gonadal hormones . . . have an influence on neural pathways in the brain.” Still, he emphasized nurture over nature.
Money had a chance to test his theories after the birth of Winnipeg twin brothers Bruce and Ron Reimer, born in 1965. A botched circumcision left Bruce’s penis almost severed, seemingly damaged beyond function. Their parents saw Money on TV in 1967 and went to his gender clinic at Johns Hopkins University.
The clinic was the first of its kind and specialized in cross-sex surgeries. Money convinced the parents to have Bruce’s penis and testes removed, rename him Brenda, and raise him as a girl. Both twins visited Money annually, and Money used their example on a lecture circuit to insist that gender roles were instilled and not innate.
This was complete fiction, but the truth didn’t come out until it was exposed by psychologist H. Keith Sigmundson and biologist Milton Diamond in a medical journal in 1997.
The twins’ mother Janet recalled how Brenda hated dresses, sewing, and dolls. Instead, the child preferred to play soldier, dress in men’s clothes, tinker with tools and gadgets, and even stand up to pee. When Brenda told doctors “she” felt she wasn’t a girl, they discounted it.
It turns out Money made the twins inspect each other’s genitals. His therapy involved forcing the twins into a simulation of sexual positions and motions, something Money justified as healthy childhood sexual exploration. Money photographed this while as many as six colleagues looked in person. If either child resisted orders, the doctor responded with anger and verbal abuse.
This disturbing account is not entirely surprising. Money participated in nudism and group sex as part of the Society for the Scientific Study of Sexuality. He advocated open marriages and even compiled a pornographic presentation for students at Johns Hopkins Medical School called “Pornography in the Home.”
In his 1975 book Sexual Signatures, Money wrote, “[E]xplicit sexual pictures can and should be used as part of a child’s sex education…. [to] reinforce his or her own gender identity/role,” Money explained.
By the age of 13, Brenda so dreaded the annual visit to Money that she threatened suicide. Her parents sent her anyway. Consultants at the Baltimore clinic recruited male-to-female transsexuals to convince Reimer it was better to be female and have a vagina. This so disturbed Reimer, that she ran away from the hospital and hid on the roof of a nearby building.
In 1980, Reimer begged her father to know the truth and he finally admitted her birth as a male. The family moved and the child took the name David. Next, endocrinologists, psychologists, and surgeons did their best to reconstruct Reimer’s manliness. Money stopped talking about the twins on the lecture circuit but did not confess how woefully wrong he was.
In 1979, Dr. Paul McHugh, chief psychiatrist at Johns Hopkins Hospital, investigated whether their sex reassignment surgeries helped the psycho-social problems of patients. The answer was so clearly “no” that the clinic stopped doing them.
In 2004, McHugh recalled that those operated on “had much the same problems with relationships, work, and emotions as before.” He added, “I concluded that Hopkins was fundamentally cooperating with a mental illness. We psychiatrists, I thought, would do better to concentrate on trying to fix their minds and not their genitalia.”
When the gender clinic was shut down in 1980, Money started another clinic at Johns Hopkins for gender “paraphilias,” a polite term for deviancies. That year, he told Time magazine, “A childhood sexual experience, such as being the partner of a relative or of an older person, need not necessarily affect the child adversely.”
In 1991, Money told Paidika, a pro-pedophilia journal in the Netherlands that a mutually acceptable sexual relationship between a ten-year-old boy and a man in his 30s was not “pathological in any way.” He said efforts to keep children from sexual activity, including sexual consent laws, was “really a diabolically clever ploy to establish anti-sexualism on a big scale.”
David Reimer killed himself in 2004, while Money died in 2006. Too bad the psychologist’s warped ideas didn’t die with him. In practice, they lead to futility and failure.
Lee Harding is a Research Fellow for the Frontier Centre for Public Policy.
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