Paving the way to affordable housing
Tax changes would allow private sector to bridge Canada's affordable housing gap
CALGARY, Sept. 21 /CNW/ - Governments at all levels across Canada have been struggling with the issue of homelessness that arises from the lack of affordable housing in cities across Canada. In response to this problem, governments have proposed myriad solutions that usually involve the injection of massive amounts of taxpayers' dollars into affordable housing or emergency shelter programs.
Today, the School of Public Policy at the University Calgary, released a groundbreaking research paper by professors Marion Steele and Ron Kneebone challenging the role of government as regards affordable housing.
"Let's look to one of the roots of the problem," Steele said. "In the 1980s, tax reform ended incentives to build multi-unit rental housing - precisely the kind of housing needed by low-income people. As a result, the stock of low cost housing has declined significantly."
On the other hand, Steele and Kneebone argue that in jurisdictions where there are tax incentives for building multi-unit rental property, the stock of these homes has not declined.
"Canada does have an affordability problem but it's a problem that can be solved, in part, by changing tax codes - not by massive taxpayer investment in low cost housing," Steele said. "The private sector can build much more low income housing, if policy is adjusted to incent that construction."
"Canadian cities, including Calgary, face a critical shortage of affordable housing," said Tim Richter, President and CEO of the Calgary Homeless Foundation. "We need to find cost effective ways to leverage the resources and expertise of the private sector to create this housing."
The study, entitled, Increasing The Affordability Of Rental Housing In Canada, can be found at www.policyschool.ca, then click on "latest papers".
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