CHRA supports FCM view that the private rental housing market must be expanded
February 6, 2012
On January 31, 2012, the Federation of Canadian Municipalities (FCM) released The Housing Market and Canada's Economic Recovery, which calls on the federal government to support the expansion of the stagnant rental housing market. Specific recommendations include providing low-interest loans to finance new rental construction, reforming the tax system to prevent the demolition of existing rental housing and providing incentives to improve energy efficiency in order to lower rental costs.
“Expanding Canada’s private rental housing stock is one of several actions that are needed to improve housing affordability and choice" said CHRA President Bruce Pearce. “The FCM report is important in this respect. Equally important is the need amplify the message that many Canadians with low incomes cannot afford housing in the private market, so incentives for the private market must be accompanied by increased federal investment in community-based affordable and social housing. Safe, affordable housing must be available to all Canadians, irrespective of income; the public, private and non-profit sectors are each needed to make this vision a reality.”
The FCM report details the eroding availability of affordable rental units, which is familiar to many CHRA members from across the country, especially in centres like Regina, where the rental vacancy rate is 0.6 per cent, or Winnipeg and St. John’s, where the vacancy rate is 1.1 per cent and 1.3 per cent, respectively. This means finding a place to rent becomes more difficult and more costly, as more households seek to occupy fewer units.
“Adding FCM’s voice to our and others’ calls for investment in the rental housing market, alongside investments in publicly supported affordable housing, have never been more timely. On top of stricter mortgage rules, we’re seeing more groups, like seniors and newcomer families, looking for affordable rental housing,” said CHRA Executive Director Jody Ciufo. “It just doesn’t make sense that while one third of Canadians are renters, rental housing has accounted for only 10 per cent of new residential construction in the last 15 years”.
In concert with FCM and others, CHRA will continue to urge the federal government to put in place measures which will grow Canada’s private rental housing stock, making sure that the units developed are affordable to a range of income levels.
See CHRA’s resolution "Growing Canada's Rental Housing Stock", and 2012 Pre-Budget submission.
Read the full FCM report here