The critical issue of Canada’s lack of affordable housing is receiving renewed attention as newly appointed Housing Minister Sean Fraser has emphasized potential relief from inflation and expected interest rate cuts.
In an exclusive interview with JEE News on Tuesday, Fraser called the housing shortage “a very serious challenge,” hinting at a hopeful solution on the horizon.
In a telephone conversation, Minister Fraser expressed confidence in the expected stability of interest rates and the resulting boost in industry sentiment, saying, “We have a big difference under this new, more stable environment… There is an opportunity to bring.”
Fraser, a former immigration minister, confirmed the government’s commitment to existing policies. “The solution to our housing challenges does not involve reducing newcomers. Instead, it revolves around increasing the housing inventory,” he asserted.
Fraser’s recent appointment is a strategic move by Prime Minister Justin Trudeau, reflecting his commitment to address concerns about the rising cost of living. With an election expected in October 2025, the Liberal Party is facing a poll deficit, fueled by accusations from the opposition Conservatives, who accuse Trudeau of economic mismanagement and an unaffordable housing boom.
Housing unaffordability has emerged as a major focal point for the Conservative opposition, highlighted by leader Pierre Poilever’s figures on rent and mortgage payments since the Liberals took office in 2015. I reflects an almost doubling.
Critics attribute part of the crisis to an ambitious immigration plan, which aims to attract 400,000 people a year, or 1% of the population, while simultaneously solving housing arrangements for these newcomers. without
While housing falls primarily under the jurisdiction of provincial and municipal governments, the federal government, headquartered in Ottawa, has embarked on a mission to accelerate what it sees as a construction boom.
In 2022, the federal government outlined ambitious plans to double the construction rate over the coming decade. Nevertheless, housing starts are expected to fall from 262,000 units in 2022 to 212,000 units in 2023, due in part to supply chain disruptions and rising building costs due to the pandemic.
The Bank of Canada’s recent decision to raise rates to a 22-year high in July, with inflation moderating in June to 2.8% from a peak of 8.1% in June 2022, is a high for the construction industry. Hope sets the tone.
