3 years into a housing crisis: reflections on the problems and solutions
The Problem: A Wake-Up Call
The housing crisis we face today is not a puzzle; it is the result of neglect and misplaced priorities. Historically, government subsidies fueled post-war housing initiatives, yet over time, funding dwindled while wealth inequality soared. It is shocking to learn that 33% of all housing starts in Canada were subsidized by the government in 1970. The result? A staggering dearth of affordable housing options, compounded by diminishing purchasing power for the working class. We find ourselves amidst a dire scenario where tents dot landscapes, frostbite victims crowd emergency rooms, and thousands clamour for subsidized housing, even among those with full-time employment.
Ironically, while real estate and leasing is Canada's largest economic entity, its benefits disproportionately favour a select few. Real estate and leasing, once the 4th largest industry in 1990 now reigns supreme, perpetuating a cycle of inequality. To confront this crisis, we must first dissect its roots with a discerning eye. Canada is the only nation I can find that makes the biggest share of its GDP off of how it distributes shelter. Don’t be fooled, the current system is working exactly as planned for a select few.
My hope in writing this is to provide my reflections on the matter to get beyond the paralysis we currently have and provide a list of options to pursue to improve things immediately. I’ve personally tried to develop a community response to housing by joining a community effort to establish the Saint John Tool Library and have run in 2020 for the provincial government and in 2021 for Saint John Council on the platform of transformative action on housing. These observations and positions are personal and not reflective of any party or common council where I sit as a Councillor at Large.
The Solutions: Charting a New Course
Real solutions necessitate a departure from conventional wisdom. The notion that increasing the housing supply serves as a silver bullet is cheap and low-energy thinking. Embracing alternative models, such as the unitary housing system, offers a transformative path forward. This paradigm shift, championed by scholars like Jim Kemeny, emphasizes resilience, accessibility, and affordability. Yet, resistance abounds, with detractors dismissing viable alternatives as utopian fantasies or economic heresy.
However, success stories from Nordic countries and other places like Vienna, Austria provide compelling evidence to the contrary. Vienna's housing model, characterized by extensive municipal ownership and robust non-profit sectors, exemplifies a blueprint for inclusive, sustainable housing solutions. Through strategic interventions, we can emulate their success here in New Brunswick. Make no mistake though, some landlords and people who profit off of the current system will accuse those of us pursuing these solutions of attempting to “bankrupt landlords” or “destroy” our economy. As those of us making the median income in this country know, however, our lives are on the line and the future our children will inherit looks terrifying when it comes to shelter security.
Actionable Steps: Turning Vision into Reality
While the journey ahead may seem daunting, tangible steps can catalyze transformative change. In 2024, New Brunswick has the opportunity to recalibrate its housing landscape by:
Investing in human capital by making construction trade school education free and incentivising skilled workers to remain in the province and start companies here.
Fostering innovation by providing grants and programs to train new workers in new training programs and empower existing contractors to expand their businesses.
Direct government support by assisting builders through agencies like Opportunities NB and local economic development bodies.
Setting ambitious targets: Establish a 30% non-market unit creation goal by 2026, backed by substantial bilateral funding worth at least 300 million dollars per year.
Empowering municipalities by facilitating the establishment of municipal housing corporations and bolstering regional housing initiatives.
Strengthening non-market sectors by providing financial backing to non-profit and cooperative housing entities. This can be done by reserve funding for credit unions and cooperative lending institutions.
Encouraging redevelopment by implementing "use-it-or-lose-it" legislation for tax-delinquent properties and incentivising developers to repurpose vacant buildings.
You will notice I did not mention a rent cap or rent bank here. A rent cap does not exist in Austria or its capital Vienna. Rent caps and banks are well championed by other proponents advocating for housing reform, however, it is my opinion that in pursuing a unitary housing system a rent cap or bank is unnecessary. Rent caps and banks are stop-gap measures to slow the bleeding, they are not the invasive surgery we need to remove the cancer of financialization.
In conclusion, the housing crisis demands more than fleeting rhetoric; it requires bold action and visionary leadership. Let us rise to the occasion, transcending the confines of conventional thinking, and charting a course towards a more equitable and prosperous future. Together, we can transform our housing landscape and build a housing system that will support people over profits.
SOURCES
The Canadian Centre for Policy Alternatives. “That 70’s Show”. Accessed March 06, 2024. https://www.policynote.ca/that-70s-show/
The Canadian Encyclopedia. “Housing and Housing Policy”. Accessed March 06, 2024. https://www.thecanadianencyclopedia.ca/en/article/housing-and-housing-policy
Statistic Canada. “GDP By Industry December 1990” accessed March 06, 2024. https://publications.gc.ca/collections/collection_2015/statcan/15-001/CS15-001-4-12.pdf
Statistic Canada. “GDP By Industry April 2022”. Accessed March 06, 2024. https://www150.statcan.gc.ca/n1/pub/12-581-x/2022001/sec16-eng.htm
Mark Stephens. “How Housing Systems are Changing and Why: A Critique of Kemeny’s Theory of Housing Regimes”. Taylor Francis Online. Accessed March 06, 2024. https://www.tandfonline.com/doi/full/10.1080/14036096.2020.1814404
Christian Paas-Lang. “All eyes on housing crisis as government, opposition duel over who's to blame and how to fix it”. CBC News. Accessed March 06, 2024. https://www.cbc.ca/news/politics/political-battle-housing-issue-1.7047812
March 11, 2024