Overview:
As Canada faces mounting challenges in its housing market, experts are calling for innovative policy changes that shift housing construction and affordability models closer to those seen in European nations. Advocates emphasize that moving beyond traditional housing models can help create a more resilient and inclusive system. These solutions—already successful in Europe—include affordable housing funded by government support, co-operative and co-housing models, and advanced building techniques like modular construction.
Key Elements:
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A Shift Toward Non-Market Housing :
- One key recommendation from Canadian housing experts is the expansion of government-supported affordable housing options. Carolyn Whitzman, a senior researcher at the University of Toronto’s School of Cities, points to examples like Vienna, where social housing accounts for a quarter of the housing market. In France, the government aims to make 20 percent of its housing “non-market” through subsidies and public ownership. Canada experimented with similar models in the 1970s but stepped back from this approach in the 1990s. Today, non-market housing accounts for only about 3.5 percent of Canadian housing, compared to 21 percent in Denmark and 34 percent in the Netherlands.
- “Countries like France and Austria have found ways to sustainably fund affordable housing by providing subsidized loans that, once repaid, go toward building new units,” Whitzman explains. This “revolving fund” approach creates a cycle of sustainable housing investment that Canada could replicate to meet long-term affordability goals.
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Developing Diversity in Housing Options:
- Housing diversity is also seen as essential for stability in the market. Sasha Tsenkova, a professor at the University of Calgary’s School of Architecture, highlights the need for a variety of options, from non-market rentals to affordable homeownership models. “Diversity is really critical for resilience,” Tsenkova says. Creating more accessible rental markets and alternatives like co-operatives can ease the pressure on Canadians to buy homes. These options allow people more freedom in life choices without feeling compelled to enter the real estate market prematurely.
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Co-Operatives and Co-Housing Models Gaining Traction:
- The Canadian government recently committed $1.5 billion to support co-operative housing, a model that has gained traction across the country. Co-housing communities, where privately owned units share common spaces, are also on the rise. Examples include Treehouse Village Ecohousing in Nova Scotia and Little Mountain Cohousing in Vancouver. Ren Thomas, a professor at Dalhousie University’s School of Planning, advocates for these models, explaining, “It’s important for Canadians to realize there are multiple ways to live beyond high-rise rentals or single-family homes.”
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Advanced Construction Techniques for Faster, Cost-Effective Housing:
- Alongside alternative housing models, experts are also encouraging the adoption of advanced construction methods, like modular building, which has proven effective in Sweden. Modular construction, designed to be faster and more affordable, has the potential to make a significant impact on housing supply in Canada. While Canada is working toward wider adoption of these techniques, they require long-term planning and consistent demand to succeed.
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Mixed Success from Current Canadian Housing Programs:
- While Canada has introduced a variety of programs to address the housing crisis, including funds for rapid housing and affordable housing loans, the results have been mixed. Whitzman points out that decades of limited federal involvement in housing policy have left a gap that won’t be easily filled. “After three decades of federal disengagement from housing, we’re taking small steps forward, but there’s still a long way to go,” she says.
- Canada’s housing experts are advocating for comprehensive and sustainable policies that go beyond short-term solutions. By incorporating proven strategies from Europe, Canada can work toward a resilient housing system that addresses current challenges and prepares for future growth.
