Mike Moffatt and Cara Stern: Bold solutions to the housing crisis must be front and centre in budget 2024

On immigration, sensibly propose a reduction to 2022 levels (arguably, might need further reduction given housing construction timelines, healthcare capacity and the like):

…Address demand while waiting for supply

Canada’s housing crisis was largely caused by our housing stock not keeping up with population growth. Supply-side reforms are needed to increase the absorptive capacity of the housing system to support the newcomers that contribute so much culturally and economically to the fabric of this country. However, that will take time, so demand-side measures are needed while the country builds that capacity.

In the last 18 months, the number of non-permanent residents in Canada nearly doubled, from 1.37 million to 2.5 million. This rapid growth led to a crisis for international students and other non-permanent residents who did not have the housing or supports needed to thrive in Canada. The federal government has responded by capping international student visas, but there is more work to be done.

They could develop a plan to reduce the number of non-permanent residents to 2022 levels of roughly 1.5 million. This one-million-person reduction can happen through attrition by slowing the intake of non-permanent residents (as with the international student visa cap) to levels that are exceeded by the outflow. This includes those both leaving the country and those gaining permanent residency. The purpose of this would not be to close the border to those who contribute so much to Canada but rather give the country time to increase its absorptive capacity. This would then create the conditions for both newcomers and existing residents to thrive.

Source: Mike Moffatt and Cara Stern: Bold solutions to the housing crisis must be front and centre in budget 2024