TD Study Tackles Affordable Housing
Source: United
Ways of Ontario's Government Relations Bulletin - Issue dd June 18, 2003
A new study by TD Economics calls on policy makers to develop a new approach to affordable housing. Rather than simply being viewed as a social or health issue, the report suggests that housing solutions also be viewed as "smart economic policy".
The report, Affordable Housing in Canada: In Search of a New Paradigm, is the fourth in a series looking at the challenges facing Canada's urban areas. They address the goal articulated by past TD Financial Group Chairman, Charles Baillie, of raising Canada's standard of living above that of the US within 15 years.
The report notes that one in five Canadian households - 1.7 million - can't find adequate housing without spending more than 30% of their income. It notes, "an inadequate housing supply can be a roadblock to business investment and growth, and influences a potential immigrant's decision on whether or not to locate in Canada."
The report found affordability deteriorated during the 1990s, and cautions that recent increases in rental vacancy rates have not significantly alleviated affordability problems. It also found that low-income families, particularly recent immigrants, have continued to fall behind economically even in boom times. And, that affordability problems exist, not only in big cities, but also in small centres and non-metropolitan areas.
To address this situation, the report calls for long-term measures aimed at increasing low-end incomes by reducing high school drop out rates, better immigrants settlement programs and other forms of income support. On the grounds of efficiency, the report rejects tax breaks currently being sought by private developers in favour of supply subsidies, protecting or rehabilitating existing housing stock, shelter subsidies and encouraging the production of more modest accommodation.
To obtain a copy of
the TD report, please visit: www.td.com/economics/special/special.html
Source: United
Ways of Ontario's Government Relations Bulletin - Issue dd June 18, 2003
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