Sun Editorial: Federal policies made housing crisis inevitable

Andrew

Aug 30

Recognizes role that provinces also play:

The way the Trudeau government talks about Canada's affordable housing crisis, it's as if the rapidly increasing number of international students and immigrants it's admitting to Canada every year snuck up on it.

When Prime Minister Justin Trudeau and the Liberals came to power in 2015, Canada accepted 352,325 international students.

This year, according to Immigration Minister Marc Miller, the number will be about 900,000.

Miller told CBC's The House on Saturday this isn't just contributing to Canada's affordable housing crisis, but also creating problems with "the integrity of the system, that has mushroomed, ballooned in the past couple of years."

Now add the fact that when the Liberals came to power in 2015, 271,845 immigrants became permanent residents of Canada.

The Trudeau government's plan is to boost that number to 465,000 this year, 485,000 in 2024 and to 500,000 in 2025.

Three Canadian banks have warned the federal government's policy is misguided.

TD Bank said "continuing with a high-growth immigration strategy could widen the housing shortfall by about a half-million units within just two years."

National Bank of Canada said "the federal government's decision to open the immigration floodgates during the most aggressive monetary tightening cycle in a generation has created a record imbalance between housing and demand."

BMO said "heightened immigration flows designed to ease labour supply pressure immediately add to the housing demand they are trying to meet."

The Trudeau government says it's wrong to blame international students — on whom it may be considering a cap on admissions — and immigrants for Canada's housing crisis.

Of course they're not to blame.

The government is to blame for increasing their numbers so rapidly, with no coherent plan to house them, consistent with Trudeau's view that "housing isn't a primary federal responsibility. It's not something that we have direct carriage of."

To be fair, provincial and municipal governments share responsibility for housing with the federal government, which also says we need high immigration levels because of our low domestic birth rate to bolster the economy, including having sufficient workers to build homes.

But what's also true is that issues the federal government has direct carriage of — immigration and international students — are contributing to Canada's affordable housing crisis.