More is required by all levels of government to deal with the systemic issues facing real estate. This presentations looks at key areas facing housing prices across Canada and the world.

1. How to make Housing more
Affordable
Paul Young CPA, CGA
June 14, 2019

2. Paul Young - Bio
• CPA, CGA
• Financial Solutions
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Supply Chain Management
Contact information:
Paul_Young_CGA@Hotmail.com

3. Agenda
 Housing affordability index
 Real Estate – Housing Starts and Real Estate Prices
 Systemic issues with Real Estate
 3-D and Home Building
 What’s next

4. Introduction
 More is required by all levels of government to deal with the systemic issues facing
real estate. This presentations looks at key areas facing housing prices across
Canada and the world.

5. Housing Affordability Index
Source - https://www.numbeo.com/property-investment/rankings_by_country.jsp
2019
2015

6.  “'The reality is that too many
Canadians cannot afford to
buy a house,' the Liberal
leader Justin Trudeau said
CBC News [ Posted: Sep 09,
2015 9:10 AM ET -
September 9, 2015
”Source -
https://www.cbc.ca/news/politic
s/canada-election-2015-justin-
trudeau-affordable-housing-
1.3220479
Liberal Party of Canada / Housing
“More eco-friendly homes which
could cost home owners up to
$35,0000 in costs”
Source -
http://www.enerquality.ca/2017/11/0
8/tighter-building-codes-ottawas-
next-climate-target-cost-
homeowners-35000/
• The Harper government introduced its
ecoENERGY Retrofit program as part of
its massive stimulus package during the
recession, which was granted to more
than 250,000 homeowners in Canada.
The program provided homeowners up
to $5,000 to retrofit old insulation, doors,
windows and rooftops with more eco-
friendly alternatives. – Source -
http://www.enerquality.ca/2017/11/08/tight
er-building-codes-ottawas-next-climate-
target-cost-homeowners-35000/
• This was part of the 2009 Stimulus Package
pushed by both the NDP and Liberal Govt
Summary
• Housing is no more affordable under Trudeau -
https://betterdwelling.com/canadian-mortgage-
growth-plummets-to-the-lowest-levels-since-
2001/
• Liberals policies would push up the cost of both
existing and new homes
• Any retro-fit policies only grow if there is
incentives by the govt.
• Short-lived reprieve. RBC’s main affordability
measure for Canada in the first quarter reversed the
slight improvement it saw late last year
http://www.rbc.com/newsroom/_assets-
custom/pdf/20180703-ha.pdf
Liberals Eco Home
CPC – Eco-Fit Programs

7. Canada Housing Market – May 2019
• Home prices rose 8% y-o-y in Ottawa (led by a 12.2% increase in townhouse/row unit prices), 6.3% in Greater Montreal (led by
a 7.6% increase in apartment unit prices), and 2% in Greater Moncton (led by a 15.9% increase in apartment unit prices).
• The MLS® HPI provides the best way to gauge price trends, as averages are strongly distorted by changes in the mix of sales
activity from one month to the next.
• The actual (not seasonally adjusted) national average price for homes sold in May 2019 was close to $508,000, up 1.8% from
the same month in 2018.
• The national average price is heavily skewed by sales in the GVA and GTA, two of Canada's most active and expensive housing
markets. Excluding these two markets from calculations cuts almost $111,000 from the national average price, trimming it to
just under $397,000.
Source – https://www.newswire.ca/news-releases/canadian-home-sales-rise-again-in-may-2019-886083799.html

8.  “Canadian home prices rose in May as Toronto remained robust despite recent government efforts to cool the market, while prices in Vancouver
picked back up to hit a fresh peak, data showed on Wednesday.
 The Teranet-National Bank Composite House Price Index, which measures changes for repeat sales of single-family homes, showed prices rose
2.2 per cent last month.
 Prices were higher in all 11 cities included in the index, led by a 3.6 per cent increase in Toronto and a 3.1 per cent rise in nearby Hamilton.”
 http://www.bnn.ca/toronto-housing-market-stays-hot-as-canadian-home-prices-rise-in-may-1.778739
 http://www.huffingtonpost.ca/2017/06/20/household-debt-canada-pbo-report_n_17227374.html Analysis
 There is issue with land, especially in major cities. Government have brought in legislation to protect sensitive areas from development
http://www.mah.gov.on.ca/Page195.aspx
 British Colombia introduced foreign buyer tax to curb high price of houses - http://business.financialpost.com/personal-finance/mortgages-real-
estate/cmhc-data-shows-foreign-buyers-have-almost-disappeared-from-vancouver-market
 Bids and asks for property are getting ridiculous. http://www.cbc.ca/news/canada/kitchener-waterloo/kitchener-waterloo-2016-real-estate-
bidding-wars-from-toronto-buyers-1.3622610
 There are old industrial sites also known as brown sites. The cost of cleaning up brown sites is very expensive.
http://warming.apps01.yorku.ca/library/wp-content/uploads/2013/03/NRTEE-Cleaning-up-the-Past-Building-the-Future.pdf
 mortgage rules allow people to enter the market when they likely should not. The mortgage approval process should look at net income as well
as look at the ability to cover operational expenses for a house. http://www.statcan.gc.ca/daily-quotidien/160212/dq160212a-eng.htm
 Federal government can set mortgage amortization period as well as thresholds for CMHC insurance. However, the federal government cannot
control areas, like land or real estate commission as they are either municipal or provincial jurisdiction.
http://www.queensu.ca/iigr/sites/webpublish.queensu.ca.iigrwww/files/files/conf/Arch/03/03-2/Hulchanski.pdf
 PBO Office – Housing Affordability - http://business.financialpost.com/personal-finance/why-its-time-for-canadas-financial-industry-to-put-the-
customer-first/wcm/433faa13-8531-4a01-9a47-229ac1220a87
 Source: https://www.slideshare.net/paulyoungcga/housing-market-canada-may-2017 or https://www.slideshare.net/paulyoungcga/canada-
affordability-housing-crisis-june-2017
Blog – Housing – Systemic Issues

9. 3-D Printing and Housing
Source - https://www.scmp.com/news/world/united-states-canada/article/2137538/can-3d-printers-make-
cheap-homes-worlds-poor or https://www.aniwaa.com/house-3d-printer-construction/
1. Overall 3-D Printing market is predicted to be 35B by 2024 -
https://www.forbes.com/sites/tjmccue/2019/03/27/wohlers-report-2019-forecasts-35-6-billion-in-3d-
printing-industry-growth-by-2024/#5892814d7d8a
2. Houses can be built for $4,000 (USD) - https://www.businessinsider.com/3d-homes-that-take-24-hours-and-
less-than-4000-to-print-2018-9
3. Environmentally friendly - https://3dprintingindustry.com/news/is-3d-printing-really-as-ecofriendly-as-we-
think-it-is-136335/
4. 3-D Housing with First Nations and Northern Countries -
https://www.northernontariobusiness.com/industry-news/design-build/test-3d-printed-homes-for-northern-
communities-report-1142349
5. More and more players are entering the 3-D Printing of Housing- https://www.artsy.net/article/artsy-
editorial-inside-race-perfect-3d-printed

10. What’s next for government
 There needs to be a review of urban planning as part of smarter urban planning -
https://www.slideshare.net/paulyoungcga/urban-planning-issues-facing-urban-planners-april-2019
 There is a shortage of the skills trades. A better strategy is require to support the skill trades as well as other skills to
support real estate market - https://www.slideshare.net/paulyoungcga/2019-election-careers-skills-training-education-
canada-may-2019
 Better market valuation that ties housing prices to wage growth, inflation and after tax income, etc. -
https://www.slideshare.net/paulyoungcga/2019-election-wages-canada-march-2019
 Better management of supply, i.e. brown sites, rural land, etc.
 All levels of government need to come up with integrated solutions as part making housing more affordable.
 Adopting new technology including 3-D Printing of housing
 Clamping down on foreign ownership, especially money laundering, speculators, etc.