Sean Fraser claims decline in inflation to end Canada's housing crisis

The pressing issue of affordable housing scarcity in Canada is regaining prominence, with the newly-appointed Housing Minister, Sean Fraser, highlighting the potential relief that could stem from easing inflation and predictable interest rates.

Fraser characterized the housing shortage as “a significant challenge,” while pointing toward a promising solution on the horizon.

During a telephone conversation, Minister Fraser conveyed his optimism about the foreseeable stability of interest rates and the subsequent boost in industry confidence.

He stated, “We are presented with an opportunity in this new, more stable environment… to effect a substantial change.”

Having previously served as the immigration minister, Fraser reaffirmed the government’s commitment to existing policies.

He asserted, “Addressing our housing challenges does not involve reducing the number of newcomers. Instead, it revolves around increasing the availability of housing.”

Fraser’s recent appointment aligns with Prime Minister Justin Trudeau’s strategic move, demonstrating a dedication to tackling the escalating cost-of-living concerns.

With an upcoming election slated for October 2025, the Liberal party is grappling with a deficit in polls, fueled by allegations from the opposition Conservatives. They accuse Trudeau of economic mismanagement and exacerbating the issue of unaffordable housing.

The matter of housing affordability has emerged as a pivotal focal point for the Conservative opposition, as evidenced by leader Pierre Poilievre’s reference to data illustrating a nearly twofold increase in rents and mortgage payments since the Liberals took office in 2015.

Critics attribute a portion of this crisis to an ambitious immigration plan aimed at attracting over 400,000 individuals annually, constituting 1% of the population.

However, they argue that this plan hasn’t been accompanied by adequate housing provisions for these newcomers.

While housing predominantly falls under the purview of provincial and municipal governments, the federal government in Ottawa has embarked on a mission to expedite what it perceives as a sluggish construction pace.

In 2022, the federal government outlined ambitious plans to double construction rates over the next decade.

However, housing starts are anticipated to decrease from 262,000 units in 2022 to 212,000 units in 2023.

This decline is partially attributed to disruptions in supply chains caused by the pandemic and escalating construction costs.

The Bank of Canada’s recent decision to raise rates to a 22-year high in July, coupled with a moderation of inflation to 2.8% in June from its peak of 8.1% in June 2022, sets a more positive tone for the construction industry.

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Sean Fraser claims decline in inflation to end Canada’s housing crisis

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