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LETTER: Federal housing promises forget key piece of the puzzle – land

Property prices are biggest factor in housing development
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Liberal Leader Mark Carney spoke at a press conference on Tuesday, April 8, 2025, in Delta.

Dear Editor,
 
Decent housing for so many Canadians who are struggling to get by without such, was definitely a hot item on the campaign trail during this last federal election.  For those running for a chance to become the next prime minister, apparently the way to solve this problem was to throw millions, even billions, at it.

I suspect that none of these party leaders have ever built a house much less put together a real estate development of the scale that they envision.

The picture they preferred to sell was that of housing tracts built along a picturesque hillside or maybe that of a high-rise apartment building in the centre of a bustling community. They proposed that somehow by the use of those federal millions that these desired residences will magically materialize.

However, the major issue that seemed to be overlooked among these dreams is that in order for these needed residences to be created, they require land. Not just a piece of forgotten farmland that one might see along the highway but serviced and zoned land. 
 
Before a shovel can be put to the ground, a residential builder needs to have an option on (or own outright) a very expensive plot of Canadian land that has sanitary and storm sewer, water, gas, power, paved roads, sidewalks, lighting, parks and especially zoning – plus probably municipal Development Cost Charges. And then there are insurance costs, mortgage interest payments, office overhead and employee wages.
 
These “soft” costs are at least half the costs needed in order to get any kind of residence to the finish line.
 
I wonder if, in addition to the costs of construction, does the newly elected government intend to finance all of these costs in order to create the much-aspired-to affordable housing?  And I wonder whether the other contenders for leadership in this recent election took these costs into account when they were making their wishful election promises? (Maybe those who didn't make it are now grateful that they don't have to face this issue. They can now spend their time criticizing Carney and company when things inevitably get waylayed and the budget overruns mount up).
 
The problem, as it always been, is still with the cost of the land – especially serviced land in Canada. Either the developer buys a piece of property and waits a couple of years – paying along the way – until these necessary services come near enough to be extended to his/her property. Or, he/she buys a very expensive piece of land that has had all of these services installed and zoning already in place, as done so by some other group who then sells the property as a finished product, ready for construction.
 
Either way, serviced property ready to build on sure doesn't come cheap in Canada, government involvement or not.
 
Evan Brett, Walnut Grove
 
 





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