Michael Waters is the chief executive officer of the Minto Group.
Canada’s affordable housing crisis is a complex issue driven by a diverse multitude of factors that include high inflation, rising interest rates in recent years, a rapidly growing population and simply not enough homes that fall within the definition of affordable – that is, having shelter costs equal to less than 30 per cent of pre-tax household income.
As chief executive officer of the Minto Group – a major real estate developer and property manager, with operations across Canada and in parts of the United States – I am acutely aware of this widespread problem and the pressure it places on families, governments and private-sector organizations such as Minto. I’ve seen the Statistics Canada report, based on 2021 Census numbers, that said close to 15 per cent of homeowners and more than 33 per cent of renters think they can’t afford to pay for the roof over their head.
The same report highlighted problems with overcrowding in many Canadian homes, with about 10 per cent of renters and 3 per cent of owners saying they were living in homes with not enough bedrooms for the number of occupants. More than 7 per cent of renters and 5 per cent of owners also said their homes needed major repairs.
I’ve also read the statement from the Canadian Mortgage and Housing Corp. calling for the building of 5.8 million homes by 2030 as an imperative to make housing affordable again. I’m naturally supportive of building more homes in this country, but real estate developers and home builders like Minto are only one part of the solution.
A problem as complex as Canada’s affordable housing crisis cannot be solved by any one organization, government body or industry. It requires a collective effort and a shared responsibility among all stakeholders to address the root causes of the problem and implement solutions that are both effective and sustainable.
One of the biggest hurdles to increasing the housing supply in Canada is the lengthy development approval process. Canada is one of the slowest countries in the world for approving building plans, creating significant delays that add to both project timelines and costs. According to the World Bank’s Ease of Doing Business index, Canada ranks 34th out of 35 OECD countries in the average time to get regulatory approval for a construction project.
As homebuilders, we are often at the mercy of these timelines. Each delay not only affects project feasibility but also puts upward pressure on housing prices, ultimately affecting affordability.
In my role as CEO, I’ve made it a priority to engage with government bodies at all levels to communicate the realities of these challenges. My aim is to educate policymakers, through consistent dialogue, on the ripple effects of delayed approvals and the ways these bottlenecks contribute to the housing crisis. By shedding light on the impact of these delays, we can push for reforms to streamline the approval process and ultimately lower costs, helping us deliver housing at a faster pace and more affordable price point.
In my discussions with policymakers, one message has become clear: without streamlined processes, solving the housing crisis will remain out of reach and Canada’s real estate market will become less competitive. It is impossible to respond to rapid changes in demand with a supply model that has long and uncertain timing.
One of the key ways we are addressing this is by participating in advisory groups and task forces focused on improving the efficiency of the approval process. For instance, Minto has advocated for the adoption of digital platforms to process applications and streamline communications between developers and regulatory agencies. Such initiatives have the potential to significantly reduce delays and bring new homes to market faster.
Minto has also advocated for more public-private partnerships, which allow for the pooling of resources, expertise and funding to tackle large-scale housing challenges in a way that no single entity could achieve on its own. Minto has engaged in several public-private partnerships, leveraging both our industry experience and government support to develop much-needed affordable housing.
Minto has also worked closely with local governments to advocate for zoning reforms and incentives that support affordable housing initiatives. For example, in cities like Vancouver, we’ve participated in programs that allow for density bonuses in exchange for building affordable rental units along transit corridors. Density bonuses are a tool municipalities can use to deliver much needed housing at minimal cost to the municipality.
In Toronto, we partnered about a decade ago with the municipal government to develop 204 affordable rental units for older Canadians. These affordable homes were made possible by a combination of City of Toronto funding, exemptions from development charges and property taxes, and lowered requirements for parking. We expanded last year on this partnership, which will see an additional 100 affordable units as part of the federal government’s investment in the Rental Construction Financing Initiative, a national program to tackle the country’s housing shortage.
These types of collaborations with municipal governments are critical as they allow us to address housing needs in a sustainable way, while also contributing to vibrant, accessible communities. Finding the right incentives results in projects that the private sector can deliver along with positive social outcomes.
Beyond partnering with the government, Minto is also creating collaboration opportunities with other players in the industry. We believe that addressing the housing crisis requires sharing ideas and innovations, particularly around sustainable and cost-effective building practices. Through industry associations, knowledge-sharing platforms and joint projects, we’re working to build an environment where real estate companies can come together to tackle the root causes of the housing shortage.
Our efforts to create partnerships extend to material suppliers and construction firms. These partnerships have become even more important in recent years, as inflation has driven up material and labour costs. By working with suppliers to explore alternative materials or new construction technologies, we can reduce expenses while meeting regulatory standards and customer expectations.
Addressing the housing crisis will take time, but with a collaborative approach, we can make meaningful progress. By working together, we can create a future where housing is attainable for all.
This column is part of Globe Careers’ Leadership Lab series, where executives and experts share their views and advice about the world of work. Find all Leadership Lab stories at tgam.ca/leadershiplab and guidelines for how to contribute to the column here.