Canada Frees Up Federal Properties to Construct New Affordable Homes
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Loading... - Stella Grant
- 26 Aug 2024
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In a bold move to address Canada's mounting housing crisis, Prime Minister Justin Trudeau's administration has unveiled plans to repurpose 56 federal properties, encompassing an area equivalent to about 2,000 hockey rinks, for the construction of new affordable homes. This initiative is part of a broader effort to mitigate the land scarcity that exacerbates the country's housing shortage.
These properties will be made available through the newly launched Canada Public Land Bank, as announced by the government in a recent press release. The first batch includes five prime locations in Toronto, Montreal, Calgary, Edmonton, and Ottawa, already listed on the Canada Mortgage and Housing Corporation’s website. Developers are invited to submit their proposals for long-term leases at discounted rates, with the expectation that the list of available properties will continue to expand.
Housing Minister Sean Fraser, who is spearheading this national strategy, emphasized the importance of addressing the high cost of land, which is one of the largest barriers to home construction in Canada. Fraser is leading an ambitious plan to build up to 3.9 million homes by 2031, surpassing the 3.5 million homes that the Smart Prosperity Institute think tank estimates are necessary to meet demand.
The government projects that freeing up public lands could facilitate the creation of as many as 250,000 new residential units. Additionally, a C$500 million ($370 million) acquisition fund is being established to purchase land from other levels of government to further bolster this initiative.
Fraser announced these measures as part of a three-day cabinet retreat in Halifax, underscoring the urgency of addressing Canadians' concerns over the soaring cost of living, largely driven by escalating rents and home prices. This move comes at a critical time, as Trudeau's government faces declining approval ratings, fueled by public dissatisfaction with housing affordability.
