Infrastructure Investment Can Support Housing Affordability and Supply, say Home Builders
November 2, 2016 - The Canadian Home Builders’ Association (CHBA) today welcomed the announcement of additional funds in the federal government’s infrastructure and public transit investment strategy, including the establishment of a Canada Infrastructure Bank, which if delivered with the right lens can help support housing affordability and supply. Details of these initiatives were announced as part of the Finance Minister’s Economic Update.
“The government’s investment, if focused on core infrastructure and transit-oriented development, can support much needed housing affordability,” says CHBA CEO Kevin Lee. “The federal government’s long-term investment in infrastructure should be aligned with local and provincial regional development plans with an aim to advance the shared goal of increasing housing supply and affordability, particularly through approaches like transit-oriented development. CHBA looks forward to seeing further details of this key link between affordability and infrastructure investment in the National Housing Strategy still to come.”
Federal funding for core infrastructure projects is critical to the future prosperity of communities across Canada. Strategic infrastructure investment can support housing affordability in both infill development and new areas for fully-serviced development. Federal investment can also limit disproportionate development taxes on the buyers of new homes, a key factor raising prices and reducing affordability.
As cities grow, so do infrastructure requirements. For decades, there has been inadequate investment in most Canadian cities to properly support the renewal and expansion of basic infrastructure, and to develop effective transit systems to ensure efficient movement of people. This ‘infrastructure gap’ is now having broad impacts on housing affordability and quality of life for residents, particularly in our fastest growing urban centres.
Today, there is broad recognition for the need to increase collective investment in core public infrastructure, including public transit. The residential construction industry already contributes nearly $4 billion to this effort each year in development taxes, which ends up being paid by new homebuyers.
“Investment by the federal government, including innovative measures to lever private sector investment, is critical to addressing the infrastructure gap. It is vitally important to ensure improved affordability and greater access to homes that meet people’s needs are the result. These investments should also address urban transportation challenges and gridlock that hamper economic vitality,” says Lee. “To maximize the socio-economic and environmental benefits of infrastructure investments, it is critical that Canada’s governments link housing and infrastructure investment policies together.”
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Media Inquiries:
David Foster
Director of Communications
foster@chba.ca
About The Canadian Home Builders' Association
The Canadian Home Builders’ Association (CHBA) is the voice of Canada’s residential construction industry. Our industry is a vital part of Canada’s economy in every community across the country. We directly and indirectly support more than 1 million jobs, paying more than $58 billion in wages. We generate $129 billion in annual economic activity, and provide over $30 billion in federal and provincial revenues each year.
Representing more than 8,500 small- and medium-sized businesses across Canada, CHBA members include home builders, renovators, land developers, trade contractors, product and material manufacturers, building product suppliers, lending institutions, insurance providers, service professionals, municipalities and more.