C. D. Howe conference on housing
"Housing Policy for a Growing Canada," November 2024
Housing Policy for a Growing Canada. C. D. Howe, February 2025. Summarizes a one-day conference that took place in November 2024. Press release. Conference agenda.
The discussion took place under Chatham House rules, to allow for more candid discussion: people’s names aren’t used. That said, the conference agenda makes it pretty clear who the speakers are!
The conference featured three sessions and a keynote luncheon presentation, with each addressing the housing crisis from a different perspective and through the viewpoints of experts.
The key themes of the first session included identifying primary barriers to housing construction, such as permit approval and rezoning delays, and the misalignment of housing supply with demand. Discussions also focused on balancing the need for new housing with community concerns about density and the capacity of existing infrastructure.
The second session focused on financial and logistical solutions to the housing crisis. It explored sustaining and scaling financing mechanisms to align supply with demand, ensuring infrastructure development keeps pace with housing needs, and addressing risks posed by uncertain population forecasts. The session also examined the role of varied procurement methods, public-private partnerships, and the expansion of training initiatives like Red Seal certifications to bolster the construction workforce and meet housing demands effectively.
The third session focused on identifying necessary reforms to tackle critical issues in Canada’s housing market, emphasizing the roles of federal, provincial, and municipal governments. Discussions explored how these levels of government can collaborate effectively to address housing challenges. The session also examined how federal programs, such as the Canadian Housing Infrastructure Fund, the Housing Accelerator Fund, the Canada Public Transit Fund, and other related initiatives, can help reduce regulatory barriers and expedite the construction of the right type of housing.
I found the summary interesting because of the variety of perspectives represented. It’s a window onto high-level discussions: what are decision-makers thinking?
Industry (first and second speakers in the first session)
The Blueprint for More and Better Housing task force (first speaker in the second session)
The Canada Infrastructure Bank (second speaker in the second session)
CMHC (keynote lunch address)
Municipal finger-pointing
The third speaker in the first session gives the municipal perspective. My sense is that municipal incentives are backwards: given that Toronto and Vancouver rely on revenue from development charges, their interest is in moving as slowly as possible to allow more housing.
The third speaker began by answering a question about whether municipalities can achieve housing targets when developers often control project execution. The speaker emphasized that the issue is not simply about approvals or zoning but involves deeper challenges related to execution and the misalignment between different levels of government. The speaker noted that historically, there was more alignment between federal, provincial, and municipal governments, with clearer roles for each in housing development. However, in the current environment, there is often competition and conflicting policies, leading to inefficiencies and delays in meeting housing targets.
The presenter emphasized that while municipalities, such as Toronto, approve large volumes of housing units each year, the challenge lies in ensuring that the approved housing is actually built and whether it meets the community’s needs. The speaker also highlighted that despite recent legislative changes that aim to speed up processes, penalties and tight timelines can sometimes be counterproductive, as they do not account for factors beyond the control of municipalities or developers.
While municipalities have taken steps to streamline processes, such as reducing zoning review times, structural and procedural challenges remain. For instance, issues like site plan negotiations, multi-owner agreements, and a lack of trust between stakeholders still create bottlenecks in the development process. The speaker emphasized that resolving these issues requires not just addressing broad concerns like “red tape” or “supply” but developing more targeted and detailed strategies to tackle the specific barriers in housing policy and execution.
The second speaker in the third panel also gives the municipal perspective:
The second presenter highlighted the vital role municipalities play in addressing the housing crisis in Canada. They emphasized that recent polling data shows Canadians overwhelmingly believe local governments are best positioned to implement solutions effectively. Housing affordability and homelessness were identified as top concerns, driven by rising inflation and precarious living conditions. The speaker described several municipal initiatives aimed at increasing the housing supply. For example, zoning changes in smaller and northern communities allow for diverse housing types and expedited approvals for certain projects in larger cities. Despite these advancements, the speaker pointed out a growing gap between the number of housing permits issued and actual housing starts, illustrating challenges beyond municipal control.
A key theme was the need to rethink the fiscal framework for municipalities, which are tasked with managing extensive infrastructure while receiving a small portion of overall tax revenue. The speaker suggested exploring alternative funding mechanisms, such as municipal bonds and alternative tax sources, to support sustainable growth and planning. They also addressed misconceptions about development charges, explaining their role in funding future infrastructure needs and cautioning against short-term solutions that could create long-term challenges. The speaker concluded by emphasizing that while municipalities are making significant strides, a coordinated, multi-level approach is essential to effectively tackle the housing crisis and support sustainable economic and social development.
More
The C. D. Howe Institute has published a number of interesting papers on housing.
Through the Roof: The High Cost of Barriers to Building New Housing in Canadian Municipalities, Benjamin Dachis, May 2018. For a more recent report, see Buyers Beware: The Cost of Barriers to Building Housing in Canadian Cities, May 2023.
Hosing Homebuyers: Why Cities Should Not Pay for Water and Wastewater Infrastructure with Development Charges. Benjamin Dachis, August 2018.
Making Housing More Affordable in Canada: The Need for More Large Cities. Paul Beaudry and Jeremy Kronick, January 2025.
Building Smarter, Faster: Technology and Policy Solutions for Canada’s Housing Crisis. Tasnim Fariha, July 2025. Press release.