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Trudeau vows to help cities lower high cost of housing

Click to play video: 'Priced out: Renters facing challenges during a red-hot pandemic housing market' Priced out: Renters facing challenges during a red-hot pandemic housing market
Some analysts say that because homeownership is seen as a right, not a privilege, government policies unfairly continue to benefit buyers over renters. This can be seen in an unwillingness to take major steps to cool a red-hot pandemic housing market as well as lax protections for renters who face instability in tight markets such as Toronto and Vancouver. Anne Gaviola explains – May 29, 2021

Prime Minister Justin Trudeau is promising municipal leaders federal backing and resources toward efforts to address the high cost of housing that he says is creating a crisis for young and middle-class families.

The cost of housing has risen across the country driven by a mix of low interest rates and demand outstripping supply as Canadians working from home look for more space.

Read more: New mortgage stress test rules take effect. Here’s what you need to know

Trudeau says the result is that the cost of owning a home is too far out of reach for too many people in Canada’s largest cities, noting it can take 280 months for an average family to save for a down payment in a place like Toronto.

Speaking to the Federation of Canadian Municipalities today, Trudeau says his government would look for ways to change the situation beyond what the Liberals have already laid out.

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Click to play video: 'Priced Out: A look at why the hot housing market is out of reach for young Canadians' Priced Out: A look at why the hot housing market is out of reach for young Canadians
Priced Out: A look at why the hot housing market is out of reach for young Canadians – May 28, 2021

He notes the federal government alone can’t cool housing costs, saying the levers exist at all levels of government.

Trudeau says the Liberals will reach out to provinces and territories to find solutions to ease concerns around housing affordability.

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