KLEIN: Booming home prices, a call for action in Winnipeg and beyond

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In Winnipeg, as in much of Canada, the dream of homeownership is slipping further out of reach for many, particularly young families.

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The narrative of affordable Canadian housing is being rewritten by the relentless rise in home prices, a trend that is not isolated to major hubs like Toronto and Vancouver but is increasingly felt in cities like ours. This surge in prices has left potential homebuyers grappling with a market that feels more exclusionary by the day.

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The root causes of this nationwide issue are multifaceted, but two significant factors contribute heavily: out-of-country buyers and the proliferation of properties used for daily rentals. Both elements introduce a surge of capital that distorts the housing market and sidelines local buyers.

Homes, rather than serving as primary residences, are increasingly viewed as lucrative investments or vehicles for storing wealth by foreign investors. This not only elevates home prices but also reduces the stock of available properties, exacerbating an already dire housing scarcity.

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Furthermore, the daily rental market, popularized by platforms like Airbnb, has transformed residential homes into de facto hotels, further straining the local housing supply. These rentals can often generate higher returns for owners than traditional leasing arrangements, making them an attractive option for investors. The downside, however, is a diminished number of long-term rental properties, pushing rent prices up and making it even difficult for locals to find affordable housing.

In response to these challenges, governments across Canada have started to implement measures, but more targeted action is required, particularly at the provincial and municipal levels.

One effective strategy could be the imposition of increased taxes on out-of-province homeowners. Such a tax would serve as a disincentive for speculative buying by non-residents and could help cool off overheated markets to more sustainable levels.

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Additionally, there is a compelling argument for stricter regulations on the daily rental market. Limiting the number of days a property can be rented out annually, or restricting the total percentage of homes that can be used for such purposes within a community, are measures that could help retain the residential quality of neighborhoods and preserve homes for current residents.

Some critics argue that foreign investment brings necessary capital into local markets, driving development and economic growth. While there is truth to this, the balance has tipped too far, prioritizing investment returns over housing affordability for Canadians. It is essential to recalibrate and prioritize the housing needs of residents who contribute to the community’s long-term vitality.

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As Winnipeggers, and more broadly as Canadians, we must advocate for policies that ensure our housing market serves the needs of our residents first and foremost. It’s not merely about economic metrics and market dynamics; it’s about the fabric of our communities and the future of our families.

Let us remember that every Canadian deserves the opportunity to own a home without undue hardship. Addressing the influence of out-of-country buyers and regulating daily rentals are steps in the right direction. By taking a firm stance on these issues, we can work towards a market that offers genuine opportunities for all Canadians, ensuring that our young families can lay down roots and thrive in their own homes.

— Kevin Klein is a former Tory cabinet minister, a former city councilor and a former Winnipeg Sun publisher.

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