Here are the issues facing housing in Canada

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
 2019 Election / Housing
 Affordable Housing / Social Housing
 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 – July 2019
Source – RBC Economics
Home resale market warms up in July:
Overall activity in Canada was the strongest since December 2017. Resales picked up 3.5% from June on a seasonally-adjusted basis and
12.6% from a year ago. This is the clearest indication yet that the market is getting over the mortgage qualifying stress test introduced last
year.
National benchmark price is rising again:
It climbed 0.2% above the year-ago level—the first increase in six months. Tighter demand-supply conditions are providing growing support
for prices. Increasingly synchronized recoveries across local markets: The picture is generally improving in Western Canada with Vancouver
recording its largest monthly sales gain (26%) in 26 years in July, and both Calgary and Edmonton posting modest advances. Activity and
prices continued to accelerate moderately in Toronto. And trends remain positive in the rest of Central and Atlantic Canada for the most part.
Ottawa, Montreal getting hotter: The persistence of very tight demand-supply conditions keep fueling property values higher and higher in
both markets. Any further acceleration could become an issue if it sets off unwanted speculative dynamics.
Things could get complicated for policy-makers:
A few more months like July and the housing policy debate in Canada might take a sharp turn—toward a further tightening of rules. This is
bound to be a hot topic in the upcoming federal election.

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. 2019 Election / Housing
Who would you trust to make housing more affordable?
@justintrudeau that introduced a Ponzi scheme for first-time buyers
https://www.theglobeandmail.com/canada/british-columbia/article-experts-question-rollout-of-federal-
housing-funds/
@andrewscheer who was part of a government that was looking RRSP expansion
https://www.slideshare.net/paulyoungcga/2019-election-housing-and-real-estate-canada-june-2019
It will take all levels of govt and the private sector to fix housing!

11. Affordable Housing / Social
All levels of government along with the private sector need to start fixing the systemic issues facing availability and affordability of
housing across Canada
https://www.cbc.ca/news/canada/toronto/affordable-housing-units-toronto-1.5192327?fbclid=IwAR3vtk5e-y-
lxGiiKpnA6V83B8pTWAPq16cxrGEYzVDdD96ijlnjRIoKHUg
Was Vaughan not on council? So, why did Vaughan not fix the issues with social housing during his days on Council?
https://www.slideshare.net/paulyoungcga/2019-election-availability-and-affordability-canada-may-2019 or
https://www.slideshare.net/paulyoungcga/social-housing-afffordability-of-housing-canada
http://www.iheartradio.ca/newstalk-1010/news/study-says-rents-in-most-cities-are-unaffordable-for-lower-income-earners-
1.9466762?fbclid=IwAR19A0MJYkoo4FtuYDXcHZNc1oZqQyaApFk-Ek2EFOrAXhlcp4K756PKT-s
Here are areas of focus:
 Are systemic issues with cost, supply, etc when it comes to housing - https://www.slideshare.net/paulyoungcga/2019-election-
availability-and-affordability-canada-may-2019 or https://www.slideshare.net/paulyoungcga/social-housing-afffordability-of-
housing-canada
 Alternatives - https://www.bnnbloomberg.ca/video/~1734941#_gus&_gucid=&_gup=twitter&_gsc=8IJdtLI
 All levels of government have not come up with effective rural affairs strategy. Rural areas are underserved -
https://www.slideshare.net/paulyoungcga/2019-election-rural-affairs-canada
 Agenda 2030 is also an issue. Agenda 2030 is pushing for more urbanization - https://www.slideshare.net/paulyoungcga/agenda-
2030-sustainable-development
 Hanover - https://blackburnnews.com/midwestern-ontario/2019/07/16/hanover-asking-public-input-strategic-plan/
 New strategy needed - https://www.homelesshub.ca/resource/housing-first-rural-canada-rural-homelessness-housing-first-
feasibility-across-22-canadian

12. 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.