We are all YIMBYs now
Ontario’s parties are coming together in favour of more housing supply. That is a good thing for Canada.
If you have ever taken a class in economics or political science, you may recognize the phrase “we are all Keynesians now.” Popularized by economists and politicians in the post-war decades, it refers to the cross-party consensus in support of expansionary fiscal policies envisioned by their namesake John Maynard Keynes.
Keynesian economics is especially popular during financial crises, and COVID-19 has been no exception. But as we emerge from the pandemic, a political consensus is being established on a different (but equally pressing) issue altogether: the need to build more homes.
Canada’s home prices have risen astronomically in recent years. According to the Canadian Real Estate Association, the average home price exceeded $800k in March. There are a number of reasons for Canada’s ballooning house prices, but the Canada Mortgage and Housing Corporation stated last week that “the biggest issue affecting housing affordability in Canada is that supply simply isn’t keeping pace with demand.”
Much of this blame can be put on governments of all levels. In the absence a more regulated provincial approach to residential zoning, some municipalities have put exclusionary land use rules in place that make it difficult to build housing that does not fit the “character” of an existing neighbourhood. Local level NIMBYism has kept housing supply artificially low, and has made more sustainable forms of development impossible or illegal. Although this issue is largely the creature of Canada’s provinces, the federal government has tacitly consented to this approach by financing infrastructure projects in communities where access to housing has been suppressed for decades.
Fortunately, federal parties are starting to come around to the idea that Canada needs to build more housing of all types, rather than some elusive right type. The federal Liberals outlined some local carrots and sticks in Budget 2022, such as launching the Housing Accelerator Fund and tying existing municipal grants to supply targets. The NDP looks set to support these measures thanks to their confidence agreement with the Liberals.
On the other end of the spectrum, Conservative leadership hopefuls have been much more explicit about tying municipal grants to local housing construction. Scott Aitchison, a leadership contender and former mayor, detailed his approach in a recent campaign video. He affirmed what many parties are beginning to believe on housing: that cities should say yes in my backyard (YIMBY) when there is an opportunity to build more.
The ongoing legislative elections in Ontario are showing us that a similar consensus is emerging within provincial parties. Despite some noticeable difference, the main parties are embracing two important positions: (1) that we need millions of new market and non-market homes, especially of the missing middle variety; and (2) that ending exclusionary zoning is part of the solution. A dose of reality makes this election easier to watch.
But as TVO’s John Michael McGrath said last week, “elections are about disagreements, and those disagreements should be clear.” Some distinctions are starting to emerge as platforms get released. The Greens want to “require a minimum percentage of 20% affordable units in all housing projects above a certain size.” The NDP and, as of yesterday, the Liberals released plans with strong protections for renters — the Liberals even went a step further calling for changes to cumbersome consultation rules. Several progressive parties have even called for the province to establish a Crown entity that would be responsible for constructing and financing affordable housing projects.
The governing PCs have not yet released their fully costed platform, but it is expected that they will follow many of the recommendations outlined by the Housing Affordability Taskforce that was commissioned in late 2021. The Ford government’s More Homes for Everyone Act was criticized for not addressing many of the taskforce’s key suggestions on zoning reform — an omission that was celebrated as a win by the province’s NIMBYs. Seeing the housing ambitions of their competitors, the PCs may want to adopt a stance that is better aligned with the experts they convened.
Over the next month, the parties will tout the niche aspects of their housing policies while bashing opponents for theirs. It is an election after all, so vigorous disagreement is both encouraged and inevitable. But the growing cross-party consensus on boosting supply and ending exclusionary zoning shows a level of political maturity that could set the standard for the rest of the country.
2022 is a special year for regional Canadian elections. In addition to the ongoing campaign in Canada’s largest province, Quebecers will vote for their representatives in the National Assembly. Canada will also see municipal elections take place in BC, Manitoba, Ontario, and PEI. The tone that is established over the next month could resonate from coast to coast. In a country that desperately needs more housing, the elections taking place this year could help make our legislatures and councils less NIMBY and more YIMBY.
