Provinces ’hold the key’ to faster homebuilding, new report argues

A new report by the Task Force for Housing and Climate warns that Canada’s provinces are the main hurdle blocking faster homebuilding. The group studied policies across the country and concluded that while the federal government and cities have made some progress, provincial governments hold the most power and have mostly done too little to speed up housing development.

The task force did not give any province a grade higher than a C+. British Columbia, Quebec, and Prince Edward Island received the highest marks, each getting a C+, while Alberta was ranked lowest with a D+. In contrast, the federal government earned a B, showing it has been more active in tackling housing challenges.

Mike Moffatt, the author of the report, says provinces have avoided most of the blame in the housing crisis, even though they have significant control over key areas. He points out that federal and municipal governments are often criticized for delays and costs, but it’s the provinces that set many of the rules and regulations that affect how quickly homes can be built.

The report looked at things like building codes, development charges, support for factory-built homes, and how provinces plan housing in high-risk areas like flood or wildfire zones. While some provinces have good policies on avoiding unsafe land, they fall short when it comes to increasing the number of homes allowed in certain areas or making it easier to get building permits.

In Alberta, the high number of new housing projects is largely thanks to cities like Calgary and Edmonton, not the provincial government. Alberta's premier has said the province isn’t blocking new development and believes more housing supply will naturally lower costs. Moffatt agrees that removing roadblocks helps, but he also says provinces need to take responsibility for growing demand and provide more social housing.

The report also raised red flags about provinces not updating flood maps, using outdated development fees, and not properly using federal housing money. Ontario recently introduced a new bill aimed at improving the permit process and lowering costs, but the report focused only on policies already in place. Moffatt hopes the report card will help keep pressure on provinces to take real action and speed up homebuilding across the country.