The challenge of constructing 3.5 million additional homes by 2030 may seem monumental, but it is achievable if we take action now. To meet this goal, Canada must increase its building capacity by 150%. This is a call to action for the housing sector: build better, faster, and more cost-effectively. It’s time for a national building spree to address the housing crisis and meet our communities’ needs.
1. Affordable Housing Approach
- Reduce Development and Finance Costs:
Streamline processes to lower costs and accelerate timelines, leveraging mixed-income and mixed-use developments.- Examples: Incorporate sustainable revenue streams like hotel rooms, student and workplace housing, short-term rentals, and executive suites, alongside affordable homeownership and rent-to-own options.
- Increase and Speed Up Development:
- Simplified Permitting: Reduce permitting and approval timelines, which currently take up to 11 months for single-family homes and over three years for mid-rise construction in cities like Vancouver.
- Automated Production Systems: Use advanced technologies for faster delivery of housing solutions.
2. Housing Bonds for Affordable Funding
- Low-Interest Financing:
Develop housing bonds to provide long-term, affordable funding for construction loans and mortgages.- Target: Achieve a 2% bond rate to significantly lower housing costs.
- Innovative Incentives: Enable a portion of bondholders to donate their interest back in exchange for a charitable tax credit.
- Current Context:
With mortgage rates at 6–6.5%, the cost per month for a 600 sq. ft. unit exceeds $1,000 on a 25-year term. Housing bonds can make these costs more manageable for developers and homeowners alike.
3. Reducing or Eliminating Land Costs
- Creative Land Use:
Reduce land costs by leveraging strategies like:- Long-Term Leases: Secure 60–99-year leases to eliminate upfront land purchase costs.
- Community Land Trusts: Retain land ownership within communities for long-term affordability.
- Land Donations: Encourage donations from governments, industries, and landowners.
- Redevelopment Opportunities: Utilize underperforming assets, such as aged-out buildings or strip malls, where landowners donate a portion of the land in exchange for density bonuses and reduced capital gains exposure.
4. Modular/Prefab Production and Delivery
- Next-Generation Housing Systems:
- Scale modular and prefabricated construction methods for faster, more efficient building processes.
- Utilize advanced technologies for low-, mid-, and high-density projects.
5. Leveraging SaaS (Software as a Service)
- Automating Housing Development:
Implement SaaS solutions to streamline and de-risk housing production, benefiting non-profits, builders, and homeowners.- Simplified Processes: Use SaaS to automate permitting, legal, logistical, and financial tasks for non-market developments.
- One-Click Access to Resources:
- Enable access to self-directed RRSP funds to purchase housing bonds.
- Simplify pre-approvals, bulk purchasing, and permitting for laneway homes, low- and mid-rise developments.
- Integrate smart contracts and pre-sale systems to expedite project timelines.
By adopting this integrated delivery platform, we can address the housing crisis with innovative, scalable, and sustainable solutions. Together, we can build the homes Canada needs and create thriving, inclusive communities.
