Amid the housing crisis, Canadians see a big election issue with no good leadersン
Amid the housing crisis, Canadians see a big election issue with no good leaders
More than half of the Abacus Data survey respondents say housing is a top election issue for them. (Photo by Creative Touch Imaging Ltd./NurPhoto via Getty Images) ·NurPhoto via Getty Images
The housing crisis will be a critical election issue for Canadians, who have little faith so far that any leader or party will be able to offer effective solutions, according to a new survey from Abacus Data and several national organizations.
Around two-thirds of the 6,000 Canadians surveyed say the federal and provincial governments are responsible for addressing Canada’s housing crisis, but that view is coupled with dismal levels of trust in governments or political parties to “come up with ideas and policies” to solve it.
“This creates a notable disconnect between who Canadians believe should take responsibility for solving the crisis and who they trust to deliver meaningful solutions,” the survey report said. “While governments are seen as primarily accountable, the lack of trust in their leadership highlights a pressing need for governments to rebuild public confidence by engaging with trusted partners, such as non-profits and community organizations, to address the housing crisis collaboratively.”
Housing affordability has been a persistent concern for Canadians in recent years, with growing dissatisfaction over high costs leading directly or indirectly to major policy changes around immigration and elsewhere. Consumer surveys consistently depict a Canadian public pessimistic about being able to afford a home or struggling to manage high payments in an era where cost-of-living concerns have risen. More than half of the survey respondents say housing is a top election issue for them.
Parties that acknowledge these concerns and outline clear, credible strategies for long-term solutions stand to gain significant political capital.Abacus Data survey
The poll found broad disappointment with the performance of all levels of government on housing, with 77 per cent dissatisfied with the federal government’s handling of the crisis and similar proportions for provincial (74 per cent) and municipal (70 per cent) governments.
“With housing affordability ranking as a top priority for over half of Canadians heading into the next election, parties that acknowledge these concerns and outline clear, credible strategies for long-term solutions stand to gain significant political capital,” the survey argued.
Expectations for the future are low, with only 29 per cent of respondents saying they have trust or complete trust in Pierre Poilievre and the Conservative Party “to come up with ideas and policies to effectively address and resolve the housing crisis.” That’s ahead of Jagmeet Singh and the NDP (20 per cent) and Justin Trudeau and the Liberals (16 per cent — the survey was conducted before Trudeau’s resignation).
“In contrast, non-governmental entities inspire greater confidence, with 36 per cent trusting non-profits and 33 per cent trusting community organizations to drive progress," the survey said.
The Liberal government introduced several new measures on housing in the second half of 2024. The changes extend insured mortgage coverage to homes valued at up to $1.5 million (from the previous $1 million), reducing required minimum down payments for homes in that range. The changes also make 30-year amortizations accessible to first-time homebuyers and buyers of new builds, a measure that can either increase purchasing power or reduce a buyer’s monthly payments.
Last fall, Poilievre promised to eliminate the GST on new homes sold for under $1 million if he becomes prime minister. He has encouraged provincial governments to do the same on provincial sales taxes.
The NDP’s housing platform includes a pledge to build 500,000 affordable housing units over 10 years and to streamline funding and approvals, waiving GST charges on new affordable rental units, and doubling the Home Buyer’s Tax Credit.
Key factors
The survey, which Abacus Data conducted with the Canadian Real Estate Association, the Canadian Alliance to End Homelessness, and the Co-operative Housing Federation of Canada, found Canadians see several factors as central to the housing crisis.
Just under half cite a lack of construction of affordable housing, high mortgage rates, unchecked population growth and the high cost of building new homes. (Respondents were able to name multiple factors in this survey.) Foreign buyers purchasing homes, developer greed, government inaction, and a shortage of rental properties were cited by around one-third of respondents.
Forty-five per cent of respondents say the decisions of financial institutions had made it more difficult for them to buy a home, while the decisions of developers (43 per cent), the federal government (42 per cent), private-sector actors such as landlords (41 per cent), as well as provincial (40 per cent) and municipal (38 per cent) governments were also named by many.
The order changes somewhat when it comes to rental properties. In this area, 45 per cent say the decisions of private-sector actors such as landlords had made renting more difficult. Thirty-nine per cent cite the decisions of developers and the federal and provincial governments, while 36 per cent say financial institutions’ and municipal governments’ decisions had made renting more difficult.
Forty-five per cent of respondents favour a collaborative solution to the housing crisis, with the government working with private and non-profit sectors. One-third of respondents say governments should take sole responsibility, while just 10 per cent say the private sector should lead, with government support.
The most popular strategy to address the crisis involves all levels of government investing to build more non-profit and co-operative housing, with 53 per cent of respondents saying it would be effective. Just under half say promoting and developing methods to build homes more quickly would be effective, and the same proportion of respondents say the federal government “should use its powers to encourage municipalities to lower development charges to reduce construction costs.”
John MacFarlane is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jmacf.
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