From the Desk of Hazzem Koudsi, CEO of Habitat for Humanity Prince Edward-Hastings.
As much as we would like to say that the current housing crisis will take everyone’s involvement to help resolve – it will fall to the private sector. Our governments are not in the business of building houses. Their role is to create policy and provide stimulus to achieve a desired outcome. So, what can be presented as an opportunity to our potential developers?
As much as we would like to say that the current housing crisis will take everyone’s involvement to help resolve – it will fall to the private sector. Our governments are not in the business of building houses. Their role is to create policy and provide stimulus to achieve a desired outcome. So, what can be presented as an opportunity to our potential developers?
As you can see in the info graphic below, housing starts in the Quinte area are down. So how can the private sector help in a way that won’t cost taxpayers? Create new home building rebates for builders to provide new home construction. This could look like increasing the rebates based on volume so that those that have the capital to build more are incentivized more. To take it further, simply reducing the developmental charges or fully eliminating the HST on new builds would make a considerable impact.
Increase the supply side of the equation and the demand will be satisfied. This will then result in a reduction in borrowing rates to levels where new home buyers can enter the market and start building equity. Through local buying the increase of equity transfers into the economy, which supports everyone’s way of life. Beyond that, with manufacturing sectors retooling and innovating this creates an uptick in hiring, which in turn increases tax revenues to offset construction rebate costs.
Everyone wins!