Housing proposals during federal campaign hearken back to a different kind of war

The upcoming election has put a spotlight on the housing crisis in Canada, with both the Liberals and the New Democrats proposing solutions that harken back to the wartime efforts of the 1940s. The Liberals have suggested creating a federal developer to build low-cost homes on government land, a concept that was successfully implemented during and after the Second World War. Similarly, the New Democrats have proposed building rent-controlled units on federally owned land in collaboration with non-profits and co-ops.

During the Second World War, Canada faced a housing shortage and a need to accommodate workers in war industries. To address this, Prime Minister William Lyon Mackenzie King established Wartime Housing Limited, a federal developer that built temporary rental homes for workers. After the war, these homes were converted into permanent residences, with thousands more built for returning veterans. The affordability of these homes was a key factor, with rent costing only a fraction of household income.

Today, the challenge lies in keeping housing costs low while increasing supply. Experts suggest that government ownership of the homes is crucial to maintaining affordability. However, factors such as construction costs, labour shortages, and zoning laws present barriers to replicating the large-scale housing development models of the past. The government’s proposal to finance innovative prefabricated homebuilders aims to address some of these challenges.

While both the Liberals and the New Democrats have ambitious plans to increase housing supply, there is a need for a more holistic approach that considers location, affordability, and the specific needs of Canadians. The goal of creating affordable housing for all Canadians remains a complex and multifaceted issue that requires innovative solutions and collaboration across all levels of government.