Housing Affordability and Inflation: What I Heard at Finance Committee
Canada’s Housing Crisis: What I Learned at Finance Committee
On Wednesday, October 8, during a meeting of the House of Commons Standing Committee on Finance studying Bill C-4 Making Life More Affordable for Canadians Act, I had the chance to ask important questions about housing affordability and inflation — two issues that affect every Canadian family.
Affordable Housing and Government Policy
I started by speaking with Alana Lavoie from Habitat for Humanity, an organization that does incredible work helping families access affordable homes. In her testimony, she highlighted the growing gap between home prices and incomes — a gap that has accelerated dramatically over the past decade.
We discussed what drives housing costs: goods, labour, and land. In Canada’s highest-cost markets, land is often the biggest factor. Government fees and civic charges now account for about 35% of the cost of a home, a significant increase from just 10 years ago. While Habitat is often exempt from these charges, private builders face them every day, and that drives prices up for everyone.
I also raised concerns about the government’s $13 billion Build Canada Homes initiative. While the focus on non-market housing is positive, injecting billions into construction could create cost-push inflation for materials and labour. There’s only so much lumber, drywall, and skilled labour available. Alana noted that starting with non-market housing is a smart move, but affordability will remain a challenge if inflation continues to rise.
Finally, I asked about the impact of government deficits. Continued overspending will fuel inflation, and inflation will make housing even less affordable. Canadians deserve policies that make housing attainable, not more expensive.
Urban Land Costs, Speculation, and Carbon Taxes
Next, I spoke with Professor Ian Lee about the root causes of the housing crisis in Canada’s largest cities. The most expensive land is downtown, and restrictive zoning combined with municipal fees has driven costs even higher. Add land speculation into the mix, and you have a recipe for skyrocketing prices.
I asked a simple question: Who profits from land speculation? The answer was clear — speculators and governments, not the Canadian public. This is why I believe we need to follow the money and understand who benefits from these policies.
We also touched on the carbon tax. Whether it’s a consumer carbon tax or an industrial carbon tax, the reality is the same: all costs eventually flow to the end user — Canadians. Every tax gets passed down through the value chain, and we pay the price.
I will keep asking tough questions and pushing for solutions that make housing affordable for Canadians. We need transparency, accountability, and smart policy — not measures that make the problem worse.
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