By: Natalie Cooke, News Writer
The Peak attended the recent event, “Understanding Housing Inequality in Canada,” presented by the faculty of sociology and anthropology. The lecture was run by Dr. Yushu Zhu, an assistant professor of urban studies and public policy. her research “focuses on housing and community issues against the backdrop of urbanization and globalization.”
Zhu acknowledged the rising issues with home ownership in Canada: “Homeownership is becoming more and more unattainable for Canadian households, especially for younger generations.” A 2022 International Monetary Fund report was used as a reference to show “Canada is among the hottest housing markets around the world experiencing the greatest increase in home prices since 2013.”
Zhu mentioned government intervention in the housing crisis is highly beneficial for any household, regardless of income. “Stronger state involvement in the housing sector, alleviates housing affordability stress for both income groups,” said Zhu.
According to Carole James, BC minister of finance: “Years of government inaction allowed the housing market to spiral out of control, hurting hard-working people who are simply trying to build a life for themselves.” She said untaxed earners and foreign owners were able to invest in real estate because of the missing safeguards.
However, Zhu noted, “Over the past few years, there’s been gradual re-engagement of the federal government in supporting social housing supply and policy, providing more funding, financing, and policy support for new housing supply.”
Therefore, to improve housing affordability and conditions, the Government of BC has placed several measures including: raising foreign buyer tax, preventing tax evasion, creating a speculation and vacancy tax, and more.
Forbes Advisor stated, home ownership in Canada is largely taken up by non-residents, which creates higher housing prices. The foreign home ownership ban went into effect at the start of 2023. “The act prevents non-Canadians, and corporations controlled by non-Canadians, from purchasing residential property in Canada for two years,” in an effort to free-up housing opportunities for Canadians.
Zhu explained neoliberalism promotes market citizenship rather than equal benefits for all, and one’s opportunities in society are based on their role in the labour market. She added income is a “predictor of housing outcomes in a highly commodified society.” This allows groups with higher income to “enjoy more housing choices and greater bargaining power in the private market.”
Thus, Zhu emphasized the unbalanced opportunities between income groups: “Private market would always respond to the housing needs and demand for the higher income groups, leaving the housing options and housing supply more limited for low and moderate income households in the market.”
Statistics Canada reported in 2016 that “people in poverty were twice as likely as the total population to live in unsuitable housing; 884,955 people in poverty (18.0%) lived in unsuitable housing, compared with 8.9% of the total population.”
To learn more about Zhu’s work on housing inequality and housing vulnerable populations, visit the Community Housing Canada website.
