Government Impact on Developing Rental Housing

As the first country in the world to adopt multiculturalism policy, Canada embraces diversity and pluralism. This is the reason for its growing population and increasing demand for rental housing across different municipalities.

Our team at ENM Construction Management makes an effort to address this need by developing rental houses that will cater to working professionals and their families in Metro Vancouver. However, the process and cost of developing rental housing in Canada is no easy feat.

International law states that Canada must work on ensuring that every individual in the country has access to adequate and affordable housing. The government of Canada implements specific policies on developing and providing rental housing to its citizens. Here's how the Government of Canada has an impact on rental housing that is developed and built in Vancouver

The demand for family-oriented housing in Greater Vancouver is on the rise. The government, particularly the Canada Mortgage and Housing Corporation (CMHC), recognizes the changes in the supply and demand for rental housing, and are now taking action to provide more housing options to families in the middle-class bracket.

Affordability has been typically assessed using economic fundamentals including price-to-income and price-to-rent ratios. In recent reports, we can see current situations in the rental housing industry in Canada.

      ✔ An increase in demand for family-oriented housing causes a severe shortage of affordable rentals across urban regions.
      ✔ The significant difference between what is available and what renters want drives prices for rental houses that are short in supply.
      ✔ The government takes new lending initiatives that aim to leverage billions of investments in affordable housing for families.
      ✔ The infrastructure gap extremely affects the affordability of rentals and the quality of life of residents.

As cities grow, the requirements for rental construction also increase. New rental house prices reflect land and construction costs and taxes. Knowing which part each level of government plays in housing development is significant in providing renters’ needs.

Canada Mortgage and Housing Corporation (CMHC)
This division of the Government of Canada provides mortgage loans to renters and home buyers. Its primary function is to act as the National Housing Agency, researching and delivering studies to consumers, businesses, and other government divisions.

Office of the Superintendent of Financial Institutions (OSFI)
As an independent agency, it manages and controls federally-registered banks and insurers.

Federal Government
It aims to protect and build a sustainable community-based housing sector through the National Housing Strategy. It partners with provinces and territories to develop the Canada Housing Benefit, a sector designed to meet the local needs and address the challenge of housing affordability.

Provincial and Territorial Government
Different departments in these sectors are involved in the funding and administration of social and affordable housing. The following are sample programs administered by these agencies:

• Rent Supplement;
• Social Housing Management;
• Social or Affordable Housing Development;
• Emergency Financial Assistance; and
• Residential Adaptation, among others.

Municipal Government
This sector is responsible for administering industrial, commercial, and residential zones. Its task includes handling approval of permits for building or house extension, among others.

All government levels must ensure that all building and rental house codes adhere to an evidence-based and transparent process following the National Building Code.

Our team at ENM Construction Management has always been true in our commitment to developing the community. Directed by Dan Greenhalgh and Colin Lacey, our team aims to provide every Canadian a safe and affordable home. We make sure that all properties that we develop pass the requirements of each government sector.

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