Oh, Canada
Happy Tuesday and welcome to another edition of Rent Free.
This week’s newsletter takes a look at Canadian Prime Minister Mark Carney’s plans to create a federal homebuilder and all the ways that it’s a terrible idea.
A Nationalized Developer Is Not the Answer to Canada’s High Housing Costs
Yesterday, Carney unveiled a new campaign-trail plan to boost home construction through the creation of a federal development agency.
The prime minister’s proposed Build Canada Homes (BCH) entity would double annual Canadian housing production by providing grants and loans to affordable housing projects and placing bulk orders for modular homes.
“My new Liberal government is flipping the script on housing with a new approach to build faster, build smarter and to build more affordably,” said Carney at a campaign stop, per the CBC.
By the prime minister’s own description, this would be a massive expansion of the Canadian government’s role in housing production.
It would be accompanied by a federal effort to slash local and provincial fees, building restrictions, and permitting processes.
The deregulatory aspects of Carney’s plan are encouraging. It is evidence of a cross-ideological consensus that governments have overregulated homebuilding. It’s an improvement from his predecessor’s eagerness to scapegoat foreign homebuyers as the cause of Canada’s high home prices.
If the prime minister realizes that restrictions on private development are holding back home production, one wonders why he’s so eager to expand the government’s role in creating new units.
There’s plenty of evidence that when the market is allowed to build the homes people want, and are willing to pay for, housing becomes broadly affordable.
Deregulation would accomplish the government’s aims without requiring the creation of a new bureaucracy and the spending of billions of tax dollars.
Supporters of a massive government homebuilding program might argue, “Why not both?” The Canadian government could liberate private homebuilders and invest
Article from Reason.com
The Reason Magazine website is a go-to destination for libertarians seeking cogent analysis, investigative reporting, and thought-provoking commentary. Championing the principles of individual freedom, limited government, and free markets, the site offers a diverse range of articles, videos, and podcasts that challenge conventional wisdom and advocate for libertarian solutions. Whether you’re interested in politics, culture, or technology, Reason provides a unique lens that prioritizes liberty and rational discourse. It’s an essential resource for those who value critical thinking and nuanced debate in the pursuit of a freer society.
