Central Nova MP Sean Fraser was sworn in as Canada’s new housing minister on July 26. Fraser tweeted, “Our economy is growing and so are our communities. We need to help build enough housing to make sure every Canadian has a safe and affordable place to call home.”

Fraser previously held the office of Minister of Immigration, Refugees and Citizenship. He is replacing York South-Weston MP Ahmed Hussen, who is now taking up the role of Minister of International Development.

The change in ministers also comes with a change in the portfolio. Whereas Hussen dealt with housing, diversity and inclusion, Fraser’s portfolio covers housing, infrastructure and communities.

Background

Fraser was first elected to the federal government in 2015. He previously worked as a lawyer specializing in commercial litigation and international dispute resolution.

In Fraser’s tenure as Minister of Immigration, Refugees and Citizenship, the department began the Atlantic Immigration Program to help businesses hire skilled foreign workers in the region. It also introduced new
technology in an effort to reduce processing times and fast-track visa applications for immigrants highly likely to become permanent residents.

What This Means for Housing in Canada

This change may signal the government’s intent to make housing a priority. Combining the housing portfolio with infrastructure and communities could lead to a more integrated approach to tackling housing supply issues.

Cabinet ministers are given mandates by the prime minister to carry out specific priorities. Fraser’s future decisions will depend on the mandate he receives. However, he is entering his new office with some ideas. After being sworn in he said, “The answer is, at least in part, to continue to build more stock.”

Housing stock is an important piece of the puzzle, but, as Fraser acknowledged, it is only part of a complete approach. It takes years to build houses; increasing housing stock won’t relieve pressure on the market in the short term.

Other proposed solutions include introducing new legislation to deter individuals from purchasing multiple properties for investment purposes, and creating incentives for developers to build rental properties.

Recent Approaches to Canada’s Housing Shortage

During Hussen’s tenure as housing minister, the federal government introduced several strategies to make housing more affordable.

New legislation called the Prohibition on the Purchase of Residential Property by Non-Canadians Act barred foreign businesses and individuals from buying residential property in Canada. The act was amended in March of this year to allow immigrants with work permits to purchase residences. Foreign businesses and individuals may also purchase vacant land zoned as residential or mixed-use. Non-Canadians may also purchase residential property to be developed for housing.

Hussen also implemented the Housing Accelerator Fund which, according to the Canada Mortgage and Housing

Corporation, “Provides incentive funding to local governments encouraging initiatives aimed at increasing housing supply. It also supports the development of complete, low-carbon and climate-resilient communities that are affordable, inclusive, equitable, and diverse.”

The Takeaway

Although the federal government does seem to recognize that housing is becoming a key issue for Canadians, any changes made now will take time to bear fruit.

In the meantime, if you’re thinking of purchasing a property in the next year, contact us today. We’d be happy to help you navigate today’s complicated housing market.