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Ambitious housing plans, but who will build them? As the world’s largest professional body for construction management and leadership, the Chartered Institute of Building (CIOB) will be watching the upcoming Canadian federal election campaign and each party’s housing policy proposals closely.
That is the shared view of Rami Daniel MCIOB, CIOB Americas Hub member, and Eddie Tuttle, the institute’s Director of Policy, External Affairs and Research.
While the proposed policies from all three main parties are likely to create opportunities for growth in the construction sector, which we always welcome, the increased demand and supply of housing mean addressing the skills shortages the industry faces, federally, across the provinces and territories, and municipally, will be critical.
Eddie Tuttle
Firstly, we looked at the numbers which have been pushed out through various campaign materials. The Liberals under Mark Carney want to double housing production to 500,000 units per year, while Pierre Poilievre’s Conservative group aims for a 15 per cent increase – although they have not given a figure of how many homes they plan to build. Turning our focus to the New Democratic Party (NDP) under the leadership of Jagmeet Singh – they are promising a mammoth 3 million homes by 2030, equating to around 750,000 per year.
Eddie and Rami agree and indeed welcome an increase in housebuilding as this means continuity of work, an increase in productivity and more jobs – but there is a catch we simply cannot ignore.
When you consider the industry has averaged just over 227,000 homes a year in the last decade, as Rami rightly pointed out, how can we double or potentially triple the output without driving up costs and overstretching an already struggling pool of workers?
While each party’s ambitions to increase housing supply are laudable, they all have the same core issue in that the industry does not currently have enough skilled workers to achieve housing supply targets. We have seen this trend in other parts of the world, including the UK, where ambitious plans sometimes ignore the simple adage that without the requisite number of skilled workers how will these targets be delivered in reality?
It is agreed by Eddie and Rami that we need better, more strategic investment in recruiting and training a skilled workforce to deliver such proposals in Canada. Failing to do so risks the nation’s ability to meet these necessarily ambitious housing supply targets. This could lead to all-around frustration, not least from the public.
Rami Daniel
Carney’s plan to alter the National Building Code (NBC) to accelerate modular housing poses opportunities across the industry, but will require a “Team Canada” approach with collaboration from provincial, territorial and municipal governments to realise these opportunities in Rami’s view.
However, it is worth noting for this proposal to be effective and impact meaningful change, provinces and territories should be consulted in this process as they can choose to adopt the NBC, parts of it or make modifications to it. As Rami says, if the proposal is to succeed, provinces, territories, and municipalities themselves should also be drivers of this type of change.
As expected with any election campaign, each party differs in how they plan to get things done. The Conservatives favour private-sector solutions, while the Liberals are pushing for more public investment.
The NDP’s housing target is bold but, is it realistic? They want to build 3 million homes and would back this target with a $16 billion fund and a plan to train 100,000 workers.
Turning the focus away from housing, with the current tariff situation with the United States, the Canadian public and political parties are all in agreement any future investment in Canada is centred around diversification away from the United States.
Infrastructure investment in public transit will continue to be a priority across the country. The difference will be in the amount and method of investment that comes from federal government. The Liberal party and NDP would continue to fund public transit and social infrastructure in line with the past decade. The Conservative Party, however, is more focused on the resource and energy sectors in Canada for both oil and gas, and critical mineral mining.
All three parties claim they will reduce red tape. Conservatives and Liberals have centred their proposals on faster approvals and less bureaucracy. The NDP, meanwhile, have proposed regulation that protects workers and the environment.
Rami and Eddie agree the industry needs speed and sustainability. The real question is whether any party can strike that balance without impacting project outcomes.
Reverting to the skills shortage, ultimately, these policies will struggle unless we solve the labor shortage. The construction industry is already stretched thin, so if we want to build hundreds of thousands more homes a year, we need to recruit and train more people.
Achieving that would mean better pathways to construction careers and improved partnerships with the existing industry to train workers. This could be achieved through rewarding companies which take on apprentices for example, and looking across policy portfolios to ensure all departments are positively contributing to recruitment efforts for the sector
One idea Rami revealed he is very much behind is the creation of a national construction workforce task force to coordinate efforts and ensure every policy lines up with the on-site reality.
In summary, investment into the industry is coming, regardless of which party wins, but what that investment translates into varies. What is clear from our discussions is the next federal government, whoever it may be, must recognise that policy ambition alone will not build homes the Canadian people need. The winning party needs an achievable plan to grow the construction workforce to achieve Canada’s housing objectives.
The CIOB will continue to work closely with policymakers and support members in Canada like Rami as we work towards a future where the construction sector has the tools, talent, and support it needs to deliver on the bold vision laid out this election.
Anyone interested in joining the CIOB can contact Sereena Kang at sk***@**ob.org.