Red tape and supply issues are among the Canadian housing industry’s major concerns for 2020, according to the latest Emerging Trends in Real Estate study published by PwC Canada and the Urban Land Institute.
The analysis found that construction, material, and land costs, along with approval processes, were at the top of industry players’ minds.
Developers polled by the study also noted that many of these issues are largely solvable on the supply side – and governments at all levels are ideally placed to make a significant difference.
“There is an opportunity to do more as governments and the real estate industry embrace the mutually-beneficial approaches to housing supply issues through transit-oriented development policies and increased density allowances around transit hubs,” the study noted.
Over the past few years, the national housing market has been labouring under ever-increasing home prices.
“Governments must recognize that increased supply can help address the affordability issue and be willing to embrace innovative ways of unlocking a supply-constrained market,” PwC Canada national real estate leader Frank Magliocco stated.
ULI Toronto executive director Richard Joy added that current measures like the B-20 stress test do not solve the more fundamental problem of availability.
"It is clear that we need greater innovation across the spectrum of land use, fiscal and technological tools to broaden the supply of housing options, especially in Canada's tightest markets," Joy said.