More needs to be done to improve Canada’s housing supply, yet barriers continue to stand in the way. To address the issue, Canada’s national association representing large real estate companies and institutional investors, REALPAC, has launched an online campaign highlighting the essential role the rental market plays in filling housing need.
While owners of aging apartment towers are faced with choosing between completing vital repairs and managing increased operating costs, developers trying to pursue healthy new rental projects are contending with inflation, high interest rates, high construction costs, slow development timelines, and high development taxes in addition to stringent government regulations and sustainability mandates.
And these are just some of the challenges impacting the rental housing sector.
“The cost pressure that people feel in Canada are also felt by landlords,” said Michael Brooks, CEO, REALPAC. “Many rental buildings are over 50 years old, and fixing them is both necessary and expensive. Developers and investors are willing and ready to do their part to help rejuvenate the purpose-built rental sector, and we ask all orders of government to work with us to enable the process.”
According to REALPAC’s “Working Together for Housing Solutions” campaign, a healthy Canadian real estate environment relies on the ability to attract investment to maintain and update existing buildings, and to build new rental stock. Through taking a few fundamental steps, the organization asserts that the rental apartment sector can be regenerated in a way that protects those who need it most, while also allowing the growth needed to house Canadians for generations to come.
“We want to bring awareness to the fundamental role purpose-built rental plays in the housing market,” Brooks said. “More purpose-built supply will help to stabilize rental prices, which contributes to affordable and attainable housing. Our members care about the housing they provide and are asking government to use a holistic lens when thinking about regulation and government process. Does the regulation bring more investment, and does the process make housing less expensive? If we can answer in the affirmative to both questions more often, we will be one step closer to affordable and attainable housing.”
Here are REALPAC’s four recommended steps to improve housing supply in Canada:
- Re-invest in Canadian rental housing.
Government and apartment owners need to work towards better housing for residents, by attracting investment to the rental housing market. Tax credits or incentives can be used for acquisition, development, or retrofit activities to support lower-income households or for building decarbonization.
- Accelerate housing supply.
Canada’s leading economists agree that Canada has not been building enough housing to keep it attainable and affordable. We need to strengthen incentives to attract investment, and encourage investors to build more purpose-built rental communities, including affordable housing. Zoning and land use rules, development charges and upfront fees, property taxes, and development approvals, need to enable investment in Canada’s rental housing market.
- Increase rental supports for Canadian residents who need it the most.
Encourage governments to increase rent supplement and rent support programs, particularly for those without the financial means to keep up with necessary rent increases.
- Improve security of tenure for residents.
Where possible and financially feasible, minimize the impacts of renovations and new development on existing residents’ tenures. Building new communities, or revitalizing established ones, requires a professional approach that adheres to the law while being sensitive to the needs of residents.
The campaign also emphasizes that finding and executing successful solutions hinges on all levels of government, housing advocates, non-profits, cooperatives, and the private sector working together in partnership.
“The participation of all sectors supports the pathway to better housing and more housing,” the website states. “Our end goal is the same: to support Canadian communities by strengthening access to secure housing and to build more quality rental housing to match our surging population growth – today, tomorrow and continually.”
Find out more at: Working Together for Housing Solutions – REALPAC
