KLEIN: Rising home prices, a call to action in Winnipeg and beyond

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In Winnipeg, as in much of Canada, the dream of home ownership is out of reach for many people, especially young families.

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The narrative of affordable Canadian housing is being rewritten by the continued rise in home prices, a trend that is not isolated to major centers like Toronto and Vancouver, but is increasingly being felt in cities like ours. These price hikes have forced potential homebuyers to contend with a market that feels more and more special by the day.

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The root causes of this nationwide problem are multi-faceted, but two major factors contribute greatly: overseas buyers and the proliferation of real estate used for daily rentals. Both elements create capital gains that distort the housing market and limit local buyers.

Instead of serving as a primary residence, the houses are seen as a profitable investment or vehicle for foreign investors to store their wealth. Not only will this drive up house prices, but it will also reduce the available real estate stock and exacerbate an already critical housing shortage.

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In addition, the daily rental market, popularized by platforms such as Airbnb, has turned residential properties into de facto hotels, further complicating the local housing supply. These leases often provide higher returns to owners than traditional leasing arrangements, making them an attractive option for investors. However, the downside is that the number of long-term rental properties is decreasing, which is driving up rental prices and making it harder for local residents to find affordable housing.

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

One effective strategy could be increased taxation of out-of-province homeowners. Such a tax would discourage speculative buying by non-residents and could help cool overheated markets to a more stable level.

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In addition, there is strong evidence for stricter regulations in the daily rental market. Limiting the number of days a property can be rented out each year, or limiting the total percentage of homes in a community that can be used for such purposes, are measures that help maintain the housing quality of neighborhoods and preserve homes for specific residents.

Some critics argue that foreign investment brings much-needed capital to the local market, driving development and economic growth. While this is true, the balance has been tipped too far, favoring investment returns over housing affordability for Canadians. Reassessing and prioritizing the housing needs of residents who contribute to the long-term viability of the community is essential.

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As Winnipeggers, and as Canadians more broadly, we must support policies that ensure our housing market serves the needs of our residents first and foremost. It's not just about economic indicators and market dynamics; it's about the fabric of our community and the future of our families.

Let's remember that every Canadian deserves the opportunity to own a home without the hassle. Removing the influence of foreign buyers and regulating daily rents are steps in the right direction. By taking a strong stand on these issues, we can operate in a market that offers real opportunities for all Canadians, ensuring that our young families can take root and thrive in their homes.

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

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