Housing hell: How we got here and how we get out.

Summary

The script highlights Canada's severe housing crisis, where skyrocketing costs have made homeownership unattainable for an entire generation of youth. It delves into the root causes, including excessive government spending, leading to inflationary deficits and interest rate hikes, as well as restrictive zoning laws and bureaucratic red tape that impede housing supply. The author proposes practical solutions, such as tying federal infrastructure funding to housing completion targets, selling surplus federal land for residential development, and incentivizing cities to streamline permitting processes. The overarching message is the urgent need to address this crisis and restore housing affordability for the middle class in Canada.

Takeaways

• 🏡 Canada is facing an unprecedented housing affordability crisis, with many Canadians, including students and the middle class, unable to afford homes or even rents.
• 📈 Housing costs in Canada have risen dramatically in recent years, doubling in just 8 years, outpacing income growth and making homeownership increasingly unattainable.
• 🌍 Canada's housing costs have risen faster and higher than almost any other country in the world, with cities like Toronto and Vancouver ranking among the most unaffordable globally.
• 💰 Government deficits, quantitative easing, and low interest rates have fueled housing inflation, with wealthy investors being able to access cheap mortgages.
• 📉 Canada's housing supply has not kept up with population growth, leading to a significant shortage of homes relative to demand.
• 🚧 Government regulations, permits, delays, and red tape add significant costs to home construction, acting as a barrier to building more affordable housing.
• 💸 The gap between the actual cost of building a home and its final sale price can be over $1 million, largely due to government fees, charges, and delays.
• 🏗️ Streamlining and incentivizing the housing approval process, and linking federal infrastructure funding to housing completions, could help increase housing supply.
• 🌆 Examples like the Squamish Nation development in Vancouver show that bypassing restrictive city rules can enable rapid construction of dense housing.
• 🔑 Addressing the housing crisis requires a multi-pronged approach, including fiscal responsibility, regulatory reform, and incentives for housing construction.

Q & A

What is the central issue discussed in the script?

The script primarily discusses the housing affordability crisis in Canada, where housing costs have risen dramatically, making it increasingly difficult for the average Canadian, especially the younger generation, to afford a home.

What are some of the striking examples provided in the script to highlight the severity of the housing crisis?

The script cites examples such as students living in their vehicles or homeless shelters, newlyweds paying $1,000 per month to rent a single room, 35-year-olds living in their parents' basements, and middle-class professionals like nurses and carpenters living in their vehicles due to high housing costs.

How does the script compare Canada's housing costs to other countries?

The script states that Canada's housing costs have risen faster and higher than almost any other country on Earth. It mentions that Canadian homes in border towns are often 100% more expensive than their American counterparts, and cities like Vancouver and Toronto rank among the most unaffordable cities globally, even compared to places with higher population densities like Singapore.

What are the two main factors identified in the script as contributing to the high housing costs?

The script identifies two main factors: 1) Government deficits and monetary policies leading to higher interest rates, and 2) Supply constraints and regulatory barriers that limit new home construction.

How does the script suggest addressing the issue of high interest rates?

The script suggests cutting government waste, capping government spending with a "dollar-for-dollar" law that forces politicians to find savings for each new dollar of spending, and bringing down inflation and interest rates by moving towards a balanced budget.

What role does the script attribute to regulatory barriers and "gatekeepers" in the housing crisis?

The script identifies regulatory barriers, permit delays, changing rules, costly consultants, lawyers' fees, charges, and taxes as significant contributors to high housing costs, labeling them as the "gatekeeper gap." It suggests these regulatory hurdles are blocking and delaying home construction.

What solution does the script propose to incentivize cities to permit more housing construction?

The script proposes linking federal infrastructure funding to cities to the number of new homes completed, providing building bonuses to cities that exceed housing targets, and requiring high-density housing around federally funded transit stations.

What example of successful housing development does the script cite?

The script cites the Squamish Nation's development in Vancouver, where they approved and began building 6,000 apartments and condos on just 10.4 acres of land, bypassing the city's regulatory hurdles.

How does the script frame the housing crisis beyond just the financial aspect?

The script frames the housing crisis as a threat to people's lives, financial futures, security, and ability to raise families, arguing that a home is central to everything people do in their lives.

What is the script's overall message regarding the housing crisis and its potential resolution?

The script's overall message is that the current housing affordability crisis in Canada is a recent phenomenon caused by government policies and regulatory barriers, and that it can be resolved by changing these policies, reining in government spending, and removing obstacles to new home construction.