Canada has a severe housing shortage. According to Scotiabank, we are 1.8 million homes short of the per-capita average among G7 countries. And when supply is smaller than demand, prices go up. RBC reports that Canada's housing affordability is the worst it's been in more than three decades, with prices in some markets spiking 30% in the past year alone.
It's a problem for the economy and for inter-generational equity, but is Canada's housing shortage also a problem for the environment?
Three experts say "yes", and all for different reasons.
Mike Moffatt, from Smart Prosperity Institute, says the housing shortage is stifling the growth of Canada's green economy - first, because fast-growing green industries aren't able to secure the workforce in the locations they need it, and second, because the green housing sector is being shortchanged opportunities to scale up its products and services.
Meanwhile, Tim Gray from Environmental Defence says Canada's housing shortage means that the housing that does get built gets built in the worst possible places. He points to the 175 acres of farmland that has been lost every day in Ontario to poorly planned urban sprawl.
Finally, Hannah Teicher from the Pacific Institute for Climate Solutions argues that urban sprawl is inevitable, but what we're missing is an opportunity to reduce its climate impact. New housing, she says, would be a chance to intensify the suburbs and to make them more transit friendly.
Is the answer to give free rein to property developers and home builders? Absolutely not. To secure the best environmental outcomes, we need governments to use smart policy and planning. Learn more on our latest podcast:
Not receiving these bi-weekly newsletters? Click here to subscribe: https://smartprosperity.us12.list-manage.com/subscribe?u=7d755bb1c763b7c0b79acfdac&id=754a872806
