A housing crisis is a global problem, with many countries facing the same situation. One such country is Canada. For over 20 years, Canada has seen a surge in its population in large urban areas such as Toronto, Ontario. As a result, the country’s housing sector hasn’t kept up with the growing demand.
Although the increasing population is the number one cause of this crisis, the financialization of the housing market also plays a part. Private equity and some financial firms have rushed to invest in the housing market, driving the costs up. As many people can’t afford decent houses, a crisis in the housing market emerges.
You Can Sue for Unfair Pricing Practices
If you’re buying a home or renting one, you have a right to fair pricing. If a home-selling company or property owner violates this right, you can file a lawsuit against the unfair price fixing. WilsonCriminalDefence or any defense can protect you from the largest brokerages, such as REMAX and Century 21, that may conspire against you to increase housing costs.
Besides, a Toronto resident filed a lawsuit against key housing market players for unfair pricing in the Greater Toronto Area (GTA). Price fixing allegations are serious, and a good law firm will help you defend your rights.
A Class Action Lawsuit can help you and many others compel real estate companies to list houses at fair market prices. What’s more, lawsuits can challenge realty rules that require the Canadian Real Estate Association to pay commissions to buyer brokerages, thus increasing housing costs.
How the Government Can Address the Crisis
The Canadian government can take some steps that will reduce the housing crisis or solve it completely:
Use Funds from Federal Coffers
The Canadian government has financial resources it can use to combat the housing crisis. The federal government can use its significant resources to influence the municipal and provincial jurisdictions to build more local houses since building houses is a local issue.
The federal government can mandate municipal and provincial jurisdictions to build houses in transit lines by tying the transit funding to this requirement. As a result, more houses will spring up in areas with good transport networks to support the growing Canadian population.
It’s great to see that the Canadian government set aside $9 billion more in 2024 for housing projects in the Housing Action Plan. The consequence of this policy was accelerated housing construction in Toronto and Vancouver.
Additionally, the government can incentivize real estate developers to build more houses for the Canadian population. Many countries can develop a plan similar to Canada’s 2024 Fall Economic Statement to loan real estate developers money to build homes and rental housing. Such an incentive will reduce the housing crisis in any country.
Building Houses for International Students
Students traveling halfway around the world to get an education from Canada also need housing. If the government doesn’t build enough houses for them, the housing crisis can only become worse. Many students may opt to get an education in countries with adequate housing in turn.
International students contribute to Canada’s economy since they pay $22.3 billion in tuition fees. After these students have become experts in various fields, they fill up employment gaps, contributing to the nation’s growth. Therefore, the government has a responsibility to build adequate houses for international students.
Building Non-Profit Houses
The housing market has become a profitable business since many real estate agents set prices that are out of reach for many people. However, the government can circumvent this problem by encouraging non-profit organizations to build houses. Organizations such as communities and churches can help the government by building homes.
Since these organizations offer rental houses at prices lower than the market value, more people can afford homes, thus reducing the housing crisis. If the government incentivizes these organizations to build on public lands, non-profit organizations will have land to build affordable houses.
Adopting GST Removal
While the Goods and Services Tax (GST) helps the government generate revenue, it can drive up the cost of housing, making housing out of reach for many. The Canadian government levies this value-added tax on co-op and rental housing.
If the government can remove this tax, it will make apartment buildings more affordable for students. Also, senior residential establishments built for long-term accommodation can become affordable. The government can also provide tax relief on building materials to make house construction more affordable.
What Can You Personally Do to Solve the Housing Crisis?
Despite the majority of the burden falling on the government’s shoulders, you can lend a supportive hand to solve the housing crisis. First, you can rent a property at a fair price to help others get a place they can call home. If you own a tract of land, you can build a house on it and become a landlord.
Building a rental property requires a substantial investment, which you might not have. If you consult a financial institution for a load, your request could go through after approval. Besides, renting your property ensures you can repay the loan.
You can also participate in community projects that create affordable housing. You can help the local community plan and implement policies that will see affordable housing built for the locals. And if you have savings, it could be a good opportunity to invest in community projects.
Additionally, you can support non-profit organizations. Through donations and fundraising, faith organizations and nonprofit groups can build affordable homes. You can donate to these organizations to help them solve the housing crisis.
Conclusion
Population increase is a global phenomenon. It is the number one cause of the global housing crisis. But high housing prices and rental fees are causes we’re all familiar with; they make rental and housing prices out of reach.
If a property owner sets unfair rental prices, you can consult a lawyer to protect your rights. And that’s because unfair prices only exacerbate the housing crisis. Fortunately, both you and the government can help real estate developers solve the housing crisis.