Did the Budget Miss the Mark on Housing? Three Major Oversights!
BY PROPCREW | JUNE 4, 2024
Let’s talk about the recent federal budget, which was supposed to focus a lot on housing, but missed a few important points. Even though it aims to help, especially those struggling with high housing costs since the pandemic, there are three big areas where it could do better. Let’s break it down into simpler terms:
Rental Assistance Needs a Tune-Up
The budget did bump up the Commonwealth Rental Assistance (CRA), which helps people pay their rent. But, they could have targeted it better to make sure it really helps those in need. Right now, some people who get this help might not need it as much as others who are still struggling. The increase they’re proposing is pretty small compared to the actual rent hikes people are facing.
More Building Needed
There’s a big need for more houses because construction can't keep up with demand. Costs to build homes have skyrocketed since the pandemic, making it super tough to get new homes built. The budget has plans to get more construction going, but it might not be enough to meet the high demand. They are also investing in training for more construction workers, which is great, but it'll take time for these new workers to be ready to build.
Smarter Use of Housing
Lastly, the budget could have done more to manage how we use the houses we already have. Some people have more space than they need, and others don’t have enough. There were no big changes to tax policies that could encourage better use of the housing stock we’ve got, like changing how homes are taxed or adjusting tax benefits for housing investments.
In short, while the budget does throw some money at the problem, it’s not tackling the issues in the most effective way. We need smarter solutions that consider who really needs help and how we can make the best use of the houses we already have. It's like when you're trying to fix a leaky bucket; you don't just keep pouring more water in, you figure out how to patch up the holes.