Canada also faced a housing crunch right after World War II, according to a Habitat for Humanity exec
Many of the lessons learned right after World War II could help Canadian policymakers address the current housing crisis effectively, according to Philip Mills, CEO of Habitat for Humanity Waterloo Region.
It should be recalled that Canada laboured under a housing crunch during and immediately following the Second World War, Mills said.
“What began as a need to house workers who were mobilized into war industries quickly expanded into a wider crisis as all levels of government struggled to find sufficient housing for returning veterans,” Mills explained.
This led to what Mills described as a historical policy success, with industry and the government cooperating to build more than 45,000 new homes across the country.
“The ability to quickly build this new housing helped preserve social cohesion and launch a postwar economic boom,” Mills said.
Prime Minister Justin Trudeau attributes the current unaffordability crisis in Canada to soaring interest rates and slow urban building. https://t.co/ncgabYuNvg#mortgagenews #housingmarket #housingcrisis #interestrates #affordability
— Canadian Mortgage Professional Magazine (@CMPmagazine) August 2, 2023
What is the lesson for current policy makers?
Mills said that this emphasizes the unparalleled impact of collaboration across all levels of government and society.
“Even the best of intentions cannot overcome a lack of co-ordination or urgency,” Mills said. “In the modern context, it was this urgency that brought different levels of government, businesses and community groups across Waterloo Region together.”
The post-war strategy involves maximizing what each component brings to the table.
“Builders have the skills and labour to build the homes,” Mills said. “Local not-for-profits and charities have experience working with rental providers to ensure that affordable rentals are available. And the provincial government has the ability to fast-track development approvals and help fund servicing and infrastructure requirements.”
At the same time, Mills acknowledged that it will not be an easy road ahead when it comes to fully implementing such policies.
“The catch is that everybody has to give something up,” Mills said. “Municipalities need to make land available for new home builds. The provincial government needs to waive development charges and other fees. And local builders need to be prepared to strip away any price markups outside of the cost of the materials and labour to build the homes.”
Still, Mills estimated that through controlling these cost drivers alone, it would be possible to reduce the price of a new home by as much as 50%.
“And we can do this for the long term,” he assured. “When shown the right plan, people are prepared to sacrifice their short-term self-interest for the long-term greater good.”
