Plans to build more housing can't happen without skilled trade workers, say homebuilder, real estate agent

A northern Ontario real estate agent and homebuilder both say they're skeptical any plan from any political party to get more homes built will be successful without first addressing Canada's trades shortage.

"The Liberals want to target 500,000 new homes per year, doubling the current pace of construction," said Jennifer Parsons, a real estate agent with eXp Realty Brokerage in Sault Ste. Marie.

"Until we figure out our labour shortage and our trade shortage, I just don't see how that can happen."

Parsons said many of her family members work in the trades and she's heard firsthand how they're experiencing a labour shortage in their respective fields.

Taylor Simard, the sales manager of DeGagne Carpentry in Corbeil, near North Bay, said builders will run into a skilled trade shortage before they can ramp up their output.

"Even if every builder within Canada was able to output 20 more homes a year on average, you're still not going to hit the target that they want and you're going to run into a skilled trade issue at some point in time for sure," he said.

Simard said homebuilders are saddled with fees that drive costs up and make it difficult for first-time homebuyers to purchase new houses.

"If they removed taxation, period, on a new build that would definitely bring things more in line with aiding in terms of getting to where they want to be in the housing target," he said.

"But I just don't see them doing that. It's too much of a [revenue] stream."

Cutting the GST on new homes

The Conservatives have proposed removing the GST from new homes worth up to $1.3 million. The Liberals said they would cut the GST on homes under $1 million for first-time homebuyers.

While that would cover most northern Ontario homes, Simard removing the GST would also mean losing the GST rebate buyers get when they purchase a new home.

For a $700,000 home he said the GST portion would amount to $35,000 and the rebate would be the maximum of $24,000.

"So if they did remove the GST, that's only an $11,000 savings on that kind of style of house," Simard said.

"Which again, is still great for clients and potential homeowners, but not enough to really bring housing down."

Parsons said she finds elements in each of the main parties' housing platforms she agrees with.

The NDP, for example, has promised to put in place a $16-billion strategy to support building affordable homes. 

"Having government-mandated or government-funded low-income housing will help some of our rental supply and eventually, you know, that goes down the funnel," Parsons said.

She said more affordable housing would free up other properties, such as single-family homes that are being rented out.

No matter which party wins the federal election, Parsons said there should be strict accountability measures in place to ensure more housing gets built and municipalities are hitting their targets.