5.06.2025

"Canada's Provinces Failing on Housing Quality"

OTTAWA — While the federal government and cities across Canada are making strides on expanding the housing supply, the provinces still need to get serious about building quality homes, a new report released Thursday argues

The recent report released by the Task Force for Housing and Climate highlights significant shortcomings in the Canadian provinces' efforts to build quality homes, despite some progress made by the federal government and cities in expanding housing supply. According to the report, no province scored higher than a C+, with Alberta receiving the lowest grade at D+. The report reveals a critical evaluation of provincial policies surrounding the rapid and sustainable construction of housing.

The federal government achieved the highest rating in the country, earning a grade of B. In contrast, Alberta's poor performance is attributed not to effective provincial policy but rather to municipal leadership in cities like Calgary and Edmonton. The Task Force, established in 2023 with support from the philanthropic Clean Economy Fund, argues that provinces have largely evaded scrutiny for their contributions to the ongoing housing crisis, shifting responsibility onto Ottawa and urban areas.

Mike Moffatt, the author of the report and founding director of the Missing Middle Initiative at the University of Ottawa, emphasized the provinces' critical role in addressing the housing shortage. He stated that while the federal and municipal levels of government face criticism for red tape and high costs, the provinces possess the most substantial policy tools but have often failed to leverage them effectively.

The task force, co-chaired by former Edmonton mayor Don Iveson and former Conservative deputy leader Lisa Raitt, underscores an urgent need for decisive action from provincial governments. Raitt expressed that no government is currently doing enough to expedite the construction of new homes.

To generate its report card, the Task Force assessed various government policies aimed at encouraging factory-built housing, addressing market gaps, promoting density, mapping high-risk areas, and updating building codes. The findings revealed considerable variability within provinces: while Saskatchewan and Ontario excel in preventing development in high-risk zones, they struggle regarding density increases. British Columbia, Quebec, and Prince Edward Island scored the highest at C+, reflecting a mix of performance across various housing initiatives.

Despite encouraging density in principle, British Columbia's score was adversely affected by slow permit approval processes and high building costs. In Alberta, Premier Danielle Smith stated that the provincial government is supportive of private sector initiatives to augment affordable housing supply. However, Moffatt pointed out that merely lowering developmental barriers is insufficient; the province must also take responsibility for the housing demands it creates, particularly through its campaigns aimed at attracting residents from Ontario.

Moffatt highlighted the importance of ensuring homes are built sustainably, considering factors such as wildfire risk, and emphasized that provinces must also address shortcomings in social housing. He underscored the need for both a thriving private sector and effective government intervention to fill existing housing gaps.

The report criticized provinces for lagging in crucial areas like floodplain mapping and urged them to amend provincial legislation which leads to higher development charges. It is imperative for the provinces to implement effective policies to safeguard against natural disasters while increasing housing supply.

The Task Force’s report card was based solely on implemented policies, meaning it did not account for the potential impact of proposed legislation like Ontario's Bill 17, designed to expedite permits and simplify development charges. The federal government's housing accelerator fund aims to encourage municipalities to ease zoning regulations, thus facilitating more new housing projects. However, the report noted the need for stronger enforcement mechanisms to ensure municipal compliance with agreements made with Ottawa.

In conclusion, Moffatt expressed hope that this report card framework will not only serve as a tool for measuring future housing policy progress but also guide further research into the housing policies enacted at the municipal level.