Discussion about this post

User's avatar
Tony F.'s avatar

What's wild about the housing crisis is that its a market that's shaped in so many ways by the intended and unintended concenquences of public policy.

Zoning, as many have pointed out, created the idea that everyone should live in single-family homes, ideally on fairly large lots. That level of density is difficult to serve in anything other than private vehicles, which creates the downstream congestion issues, as well as being really challenging to sustain from a property-tax base perspective.

At the same time, we decided that home ownership was a good as it allows people to build wealth, so we created public policy to support home ownership. But, that turned homes into an asset class, driving up prices, creating disincentives for a greater variety of rental properties, and creating our current divide between those up us lucky enough to have bought a home before they became unaffordable. It also tends to tie people to places, which means when local economies slow and stall, it's hard for people to move to where the jobs are as nobody wants to buy their houses -- so governments then are pressured to bring new economic opportunties to these people via tax incentives and other support for industry.

We've ended up creating a strong incentive for suburbian style development. Greenfield development hasn't traditionally run into the kind of NIMBY push-back that new development in established areas can, plus I'd imagine it's cheaper to build a whole bunch of similar homes on a green field then smaller in-fill developments in urban areas. Those places are also initially cheaper to buy and incentives to first-time buyers makes them affordable. If you have a family and want a bit of extra space and for your kids to be able to walk to school, it kind of becomes the default option.

My own experience -- I live in a detatched house in a pretty suburban style development in a small city. We came here from Toronto about a dozen years ago. We looked at a lot of options. Everything in Toronto was really expensive, especially when considering that a lot of the housing stock was older, so there was the purchase price plus the renovations/repairs that would probably come up. We looked at moving outside of Toronto and commuting, but the commuting costs plus the slightly less-expensive homes still didn't add up -- and the lost time with family would have sucked. We managed to move outside of Toronto AND find jobs in this community, which worked, but if we had to do it today, we probably couldn't afford the house we're in! I was willing to consider condos in Toronto (I actually don't really like the tasks associated with owning homes) but family-sized condos are few and far between. The incentives to home ownership meant renting didn't really make sense and, again, there aren't a ton of family sized rental properties and those that exist aren't really a lot cheaper than just buying a house.

It's a market failure, influenced by layers of public policy at the local, provincial and federal level that require some sober thinking to fix. Instead, we're getting this kind of knee-jerk, buckshot approach that probably isn't going to work and -- in the case of the greenbelt -- involves some really dumb trade-offs. Maybe we should start by seperating housing from home ownership and focus on creating more options on the former (that might include the latter). At the same time, think about housing options that aren't just affordable for residents, but are also sustainable for communities in terms of providing ammendities, so cities/towns aren't continually scrambling to meet local needs on inadequate tax bases.

Expand full comment
next_to_herb's avatar

"Even as they decry NIMBYism that blocks new housing from being built, Ford and his government have fallen victim to a kind of NIMBYism of the mind: they can’t imagine anyone wanting to live anywhere other than suburbia — certainly, they can’t imagine anyone being happy there..."

On Air Quotes Media podcast "Curse of Politics", Kory Teneycke (the c/Conservative on the panel, who's worked on and off for the Ontario PCs since Ford's election) has said repeatedly that the aspiration of the public as a whole is the white picket fence suburban home as opposed to renting, and that successful politicians will focus on those aspirations as opposed to other forms of housing. Your commentary about the OPC absolutely lines up with Mr. Teneycke's statements. Is there polling that supports those statements, for Toronto, the rest of the GTA and the remainder of Ontario?

(Yes, I would love a bigger home in Toronto than the small detached that I own now in Toronto, but specifically, I would like my kids to have their homes in Toronto as well so I can see them, and their first homes will by necessity be small like the one where they grew up. So, we need more of the small ones. Not sure where that fits in the OPC "aspirations".)

Expand full comment
19 more comments...

No posts