The key to restoring housing affordability & encouraging smart policymaking lies in innovation & collaboration
Can housing affordability be restored? Is it just a matter of a few interest rate cuts and transit-oriented development? Reducing housing costs involves more than simply tweaking interest rates — it calls for a multifaceted approach that reflects the complexity of the problem. Lowering housing costs depends on several critical factors: the impact of government policies on the cost of homeownership, the necessity for community-focused strategies in new developments, the crucial role of collaborations between government and the private sector in enhancing quality of life indicators like housing accessibility and the embracing of proptech (property technology) advancements and data-driven decision making in real estate. Government participation in strengthening Canadian communities Developers want to create vibrant communities across Canada and support the needs of a growing national population. This is particularly relevant in Canada’s key metropolitan regions — Vancouver, Montreal and Toronto — as they receive the bulk of newcomers in the country. By collaborating with developers to lower development and construction costs, municipalities and regional districts in British Columbia can significantly boost the financial viability of projects for developers. This strategy can open the door to new opportunities for building vibrant communities outside metropolitan areas where land is more readily available, while also stimulating growth in urban neighbourhoods that have seen limited changes. The difficulty in managing costs can be seen in Vancouver’s 15-month delay in obtaining permits, which can substantially increase developers’ costs. This not only raises interest on project financing as funds remain idle but it also allows inflation to drive up material and labour costs. Additionally, this extended waiting period often leads to resource misallocation, potentially resulting in penalties for rescheduling construction crews and equipment. These disruptions can have a ripple effect, impacting broader financial plans and cash flow management. Government policy is another crucial ingredient, as zoning regulations, building codes and taxation can significantly influence the availability and cost of housing. Policymakers must work closely with industry stakeholders to foster an environment that promotes sustainable growth and affordability. Examining the impact of the new 30-year mortgage rule However, policy for the sake of policy is not the answer. Take the new 30-year mortgage rule that the federal government introduced for first-time buyers. While this can increase the borrowing power of first-time buyers, the reality is that this will not impact the vast majority of Canadians who need relief when it comes to buying a home. Meanwhile, it does serve as an effective political soundbite. In larger markets like Vancouver and Toronto, a 30-year mortgage stretches payments over three decades, leading to higher interest costs for homebuyers in the long run despite immediate payment relief. We must engage with local and provincial governments to ensure that both homeowners and developers are actively involved in decision-making processes. Notably, developers in the United States have an easier time accessing information, permits and data. For example, in Seattle, developers who have applied for a development permit can obtain the permit in a minimum of 21 days. In contrast, in Canadian cities like Vancouver, permits are obtained within an average of 15.2 months. Our current high borrowing costs and extensive time spent waiting for permits ultimately get passed down to homebuyers. Embracing proptech advancements alongside new policies Government policy alone won’t move the needle when it comes to helping first-time buyers get into their dream homes. But new policies combined with technology and innovation have the power to revolutionize the real estate industry, offering new ways to reduce costs and enhance efficiency. Proptech advancements, such as virtual reality tours and AI-driven property management systems, streamline operations and improve customer experiences. This goes hand in hand with innovations to speed up the approval process and grant building permits at the municipal and provincial levels. These technologies reduce the time and cost associated with buying, selling and managing properties. Additionally, the use of data and analytics allows for more informed decision-making, helping developers and policymakers identify emerging trends. Leveraging these technologies, alongside government programs and incentives designed to retain engineering and tech talent within Canada, will position us as leaders in innovation. This strategic approach will enable us to break new ground in the realm of development and affordable housing. Meeting housing needs and strengthening Canada’s future Addressing the high cost of development and homeownership in Canada requires more than just lower interest rates. Local governments need to foster public-private partnerships, reassess zoning laws and incentivize affordable housing development. This goes along with embracing technological innovations that can enhance transparency and efficiency, while a proactive approach to managing real assets ensures long-term value and cost-effectiveness. Governments at all levels should also be exploring strategies to streamline their cost structures, as current systems and processes lag behind the advanced technologies being adopted worldwide. In addition, succession planning can provide stability and continuity in housing strategies. These measures collectively encourage smarter policymaking and will work to increase affordable housing supply, resulting in stronger Canadian communities.
Featured Development: 8 Temple in Toronto’s Liberty Village
Strategically located in Toronto’s popular Liberty Village, 8 Temple offers a blend of urban energy and serene living. This boutique luxury condominium project, developed by Curated Properties, offers first-time buyers and young urban families a chance to grow in a thoughtfully planned community. With stunning modern architecture and spacious, well-designed suites by the award-winning Chapi Chapo Design, 8 Temple promises premium living in a rising neighbourhood. Ideal Location in Liberty Village Situated between King Street West, Queen Street West, and Ossington, 8 Temple is ideally located in a peaceful pocket of Liberty Village. This location allows residents to enjoy quiet living while being steps away from Toronto’s most dynamic areas. The proximity to the city’s iconic landmarks, such as the CN Tower and Lake Ontario, enhances the appeal of living at 8 Temple. Residents are on the spot to enjoy the city’s thriving nightlife, creative community, and scenic harbourfront, offering a perfect balance between work, play, and relaxation. Stunning Views 8 Temple boasts incredible views. Whether facing south towards the serene waters of Lake Ontario or north towards the bustling cityscape, residents can enjoy breathtaking vistas that include the CN Tower and the dazzling city lights. Each suite is designed to maximize these views, providing a serene environment amidst the urban landscape. Spacious Suites The suites at 8 Temple range from 489 to 1,238 square feet, with configurations that include one to three bedrooms and up to two bathrooms. These open-concept layouts are designed for modern urban living, featuring abundant storage solutions and multiple customizable finishes. Each suite comes with a private balcony or terrace, enhancing the living space and providing a personal outdoor retreat. Premium Amenities for Every Lifestyle 8 Temple offers an extensive rooftop amenity program that caters to a wide range of interests and lifestyles. The Sky Lounge provides a space for relaxation and socializing, while the fitness centre and outdoor strength and conditioning area support a wellness-focused lifestyle. The development also features an indoor and outdoor professional-grade kitchen, perfect for both everyday cooking and entertaining guests. Other amenities include private dining rooms, saunas, an outdoor theatre, a pickleball court, and outdoor private event spaces, adding to the luxurious and convenient living experience. Modern Features and Technology Every suite at 8 Temple is equipped with high-end features that prioritize comfort and convenience. The inclusion of an Energy Recovery Ventilator (ERV) system ensures improved air quality, while Smart Home technology by Bell and SmartONE allows residents to easily control various aspects of their home environment. Optional smart storage and linen closets provide additional organization solutions, and the incredible city and waterfront views from every suite create a living experience that is both functional and visually stunning. Future Growth and Development 8 Temple is poised to benefit from the new Ontario Line, further increasing its desirability and accessibility. The development’s high Walk Score of 93, Transit Score of 91, and Bike Score of 78 reflect the ease with which residents can navigate the city, making it a convenient choice for urban living. About the Developer Curated excels in designing stylish residences in Toronto’s prime neighbourhoods. Their context-sensitive approach integrates seamlessly with the urban surroundings, and caters to the needs of city dwellers. Recognized as an industry innovator, Curated has earned multiple BILD Awards for its standout projects. Its portfolio includes notable developments like The Plant, Cabin Toronto, and others. Key Details and Timeline The occupancy date is set for June 2027. Suites start from $710,000. For investment purposes, an average return on investment of 33.05% is anticipated.
Housing, credit & money management among top concerns facing immigrants in Canada: Money.ca
A recent Money.ca study revealed significant financial challenges immigrants in Canada face, including struggles with credit, money management and access to affordable housing. The survey gathered responses from 1,200 participants, offering an in-depth look at the obstacles new Canadians must navigate as they adapt to the country’s financial landscape. “Financial literacy is not just about numbers; it is about making informed decisions, building financial stability and improving quality of life,” says Romana King, senior finance editor at Money.ca. “This data highlights the lack of accessible and comprehensive financial education for new immigrants, across the country.” Here are some key findings. Housing affordability remains a major hurdle 11.9 per cent of new immigrants reported difficulties when trying to rent or buy a home. Contributing factors included lack of credit history (low or no credit scores), high rental prices, dependence on a guarantor and the need for large upfront payments. Many also encountered barriers such as racial discrimination, language challenges and the complexities of the rental process. Financial management skills lacking for many Nearly one-third of immigrants rated their money management skills as “average” or “poor,” indicating a knowledge gap. While 62.67 per cent felt confident in their abilities, 31.67 per cent considered their skills “average,” and 5.66 per cent rated them as “poor” or “very poor.” Credit scores impact access to financial products A quarter of immigrants have credit scores below 670, hindering their access to affordable financial products, employment and housing. Additionally, only 12.48 per cent of immigrants knew that their credit score could impact their ability to rent a home. Gaps in understanding debt repayment, investing, and taxation were also prevalent. “Achieving milestone goals, like finding housing in a new home country, requires access to helpful financial tools and products. From our research, it’s clear that new immigrants don’t have uniform access to these products or to information that can help them make informed decisions,” explains King. “This is a problem for all Canadians and a reason why we need to prioritize financial education to bridge gaps and foster a financially inclusive society.”
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