How do we fix the housing problem in Canada

J&M Capital believes with all stakeholders working together the housing shortage and affordability crisis can be fixed.  Short-term there are a few key stresses on the real estate market in Canada.  First, the cost of borrowing has increased significantly making mortgages much harder to come by.  Second, new construction costs keep increasing due to supply chain issues, fuel costs & skilled labour shortages.

Higher borrowing costs coupled with higher costs of building is pushing the industry towards a dangerous area where profits margins are getting squeezed.  If Canada is not careful it will end up in a situation where the cost to build is greater than the price people can afford to pay.  With the mortgage stress test set to become more robust in January, the Bank of Canada needs to be very strategic with rate hikes moving forward.  If not, we could see the housing market in major trouble in 2023.  

During these uncertain times communities can still deal with the supply shortage of homes by focusing on three key areas.

1) Streamlining permits and improving the strategic use of land in and around the city.

2) Increase construction efficiency and support training new workers.

3) Improve the relationship between government, not-for-profits, and private enterprise.

Continue to follow J&M Capital as we expand on these above key areas in the near future.