The Federal Budget

The 2024 Federal Budget: Action Needed 

The 2024 Federal Budget raises a number of concerns but, it also introduces substantial initiatives aimed at addressing Canada's pressing housing shortage, signaling a commitment to expanding housing supply. While the direction is promising, a coordinated effort from both provincial and federal governments is essential to pull in the same direction effectively. 

Housing Supply Challenges 

Canada's current housing starts stand around 225,000 per year. To reach the aggressive target of adding 3.87 million new homes by 2031 is a task that demands not just plans and talk but accelerated action. Achieving such numbers requires more land ready for development, a drastic increase in the speed of construction processes, and more people to do the work. It’s difficult not to be a bit skeptical - while intentions are good, red tape and slow approvals continue to hamper progress. Speed, unfortunately, has not been Canada's forte for a long time. 

One Ontario: A Blueprint for Efficiency 

This is why solutions like One Ontario are important. If you aren’t familiar with it, One Ontario is a non-profit initiative focused on streamlining Ontario's development approval process. Despite its potential to significantly enhance efficiency by integrating and improving communications across all the regulatory bodies involved in development approvals, One Ontario remains unfunded at the provincial level. It did, however, receive seed funding from CMHC and is now ready for implementation. One Ontario is a vital piece of the puzzle in streamlining processes to address the housing supply chain's inefficiencies and could complement the federal efforts by ensuring that new policies are implemented effectively and swiftly. On top of that, the One Ontario model could easily be replicated in other provinces; it just needs government endorsement and leadership. 

Moreover, with the federal budget's new commitment to provide funding for the modernization and enhancement of housing data, One Ontario is ideally positioned to leverage these resources.  

Modernizing Housing Data 

To better understand the needs of local housing markets, we need better data. Every order of government should be committed to a data-driven response to the housing crisis. 

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To help modernize housing data, Budget 2024 proposes to provide $20 million over four years, starting in 2024-25 for Statistics Canada and the Canada Mortgage and Housing Corporation to modernize and enhance the collection and dissemination of housing data, including municipal-level data on housing starts and completions.”  

If adopted federally, as has been done in other advanced jurisdictions, One Ontario could play a pivotal role in providing precise, localized housing market insights. This data-driven approach can greatly aid in understanding the specific needs of communities and streamlining development approvals, thereby accelerating housing projects and helping to meet national housing targets more effectively. 

Leveraging Technology and Data 

Technologies like LandLogic could also play a vital role by offering insights into the real estate landscape, helping developers and governments align decisions with economic and community needs. By pinpointing optimal development areas, and quickly assessing what’s possible on a piece of land, there is an opportunity to significantly speed up the project lifecycle. 

Strategic Long-Term Thinking  

As we consider the Federal Budget's commitments, integrating advanced tools and platforms must be part of a broader strategy that includes generational thinking rather than focusing solely on electoral cycles. The effectiveness of the proposed measures will hinge on their implementation. Strategic use of technology and cooperation across all levels of government are key. Investments can’t just be announcements; they must be executed strategically, with a clear focus on long-term sustainability. 

Furthermore, tackling skilled labor shortages and strategically aligning immigration targets to meet labor market demands are crucial steps needed to resolve the housing crisis. Immigration must be used as a tool to alleviate, not worsen the problem. By matching immigration with the specific skills needed in the housing and construction sectors, we can ensure that immigration serves as a key part of the solution, helping to build the workforce necessary to meet our ambitious housing targets. 

Action Needed 

While the budget trends in the right direction for housing, real success hinges on aggressively cutting through bureaucratic red tape and accelerating approval processes. The government must transition from talk to tangible action, focusing sharply on execution. It’s not merely about setting targets—it’s about hitting them.