There’s no shortage of warnings and concern about the housing crisis unfolding across Canada. But for all the headlines and policy announcements—including the disappointing recent federal budget—one voice remains notably absent from the discussion: the people who actually build the homes.
As a homebuilder and business leader who has worked in the industry for decades, here’s what is happening on the ground: costs are rising, projects are stalling and the economics of building homes for all income levels are getting harder by the day. And yet, governments at every level continue to layer on new taxes, fees and policy requirements without adjusting for the current economic environment and without an understanding of the combined total costs.
Some of us were counting on the new budget to provide some hope for the industry, but no such luck. Many of us in the industry were calling for an extension of the GST/HST rebate beyond just first-time homebuyers to all buyers. That would have moved the needle.
The budget also backs away from two additional solutions that would have recapitalized and revitalized the industry at a desperate moment. It backs away from a commitment to reduce development charges by 50 percent on housing, and neglects to mention the multi-unit residential building program (MURB).
What home builders are asking for is a seat at the table and a willingness from governments at all levels to revise outdated assumptions and policies. We are asking for revisions, not a full rollback on taxes, fees and policies.
Without this kind of dialogue and collaboration, homebuilders will continue to be the boiling frogs of Canada’s housing crisis. And we are getting used to increasingly dire conditions—the continuous onslaught of taxes, regulations, fees and continuous, increasingly expensive changes to the building code.
We have been too complacent in the face of this looming catastrophe. If we stay the current course, you will surely see a serious shortage of housing in the coming years.
Homebuilders don’t oppose regulation or paying our fair share. Planning, oversight and community investment are vital. But one-size-fits-all policies ignore regional nuance and they do more harm than good when they aren’t adapted to local and community conditions.
Then there’s the frustrating problem with political reliance on stale Canada Mortgage and Housing Corporation data. The CMHC’s methodology to report housing starts does not reflect the actual starts. That’s because they don’t account for excavations, foundations and parkades which can take up to 18 months. Hence the data is behind the reality for the front line.
What does that mean? It means in 18 months, we are are going to see a shocking drop in housing starts due to home builders pausing projects today. Without co-ordinated action and without a seat at the table, we risk a further dramatic decline in housing creation.
It’s time to start treating homebuilders as a stakeholder in the solution, not a scapegoat for the crisis. We are here to build homes and in the process we provide economic growth, stability and jobs for Canadians.
Give us a seat at the table. Let’s work together. Because without private-sector builders, the homes Canada needs simply won’t get built.
By: Kevin Layden
Kevin Layden is the CEO of Wesbild, a residential homebuilder based in Vancouver.