Mixed income rental

Municipal, provincial and federal governments must act together on mixed-income housing


Co-Authored by: Cameron Macdonald |  Vice President, Transaction Real Estate

Canada’s housing ecosystem has reached a precarious tipping point

Record-high demand and record-low supply are making it harder for Canadians to afford suitable housing. At the same time, macroeconomic factors are making matters worse. Construction costs, conventional lending rates, government fees and red tape are challenging the viability of new development projects and deepening Canada’s persistent structural shortage of new housing.

 

We know purpose-built rental housing could play a big part in solving this problem. More specifically? Mixed-income, purpose-built rental housing — secured through long-term ground leases with private and nonprofit sector developers on surplus government land — could go a long way towards easing the affordable housing crisis nationwide. Tapping into these possibilities to make sustainable progress will require all three levels of government to pull strategic policy levers already at their disposal. But they must consider these actions in a coordinated, simultaneous approach to work effectively at scale. And that’s an opportunity.

 

This is the moment for all levels of government to work in concert, apply a variety of policy levers in tandem and help development projects overcome the increasingly challenging economics associated with new rental housing development. Canada’s ability to maintain a sustainable housing ecosystem for generations to come will depend on this collaboration.

Read Canada's mixed-income housing report

Summary

Coordinated efforts among municipal, provincial, and federal governments are crucial for advancing mixed-income, purpose-built rental housing. Leveraging surplus government land and offering strategic incentives can mitigate the housing crisis and promote a sustainable housing ecosystem. A unified approach will overcome economic challenges and ensure long-term affordability. For a detailed analysis and actionable insights, download EY Canada's Housing Research report.