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Frontier Centre for Public Policy

We should follow New Zealand on housing and free up more land for growth

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From the Frontier Centre for Public Policy

By Wendell Cox

Attempts to contain ‘urban sprawl’ have driven land prices sky-high. It’s time to abandon densification strategies.

Not so long ago, house prices tended to be around three times household incomes in most housing markets in Canada, the U.S., the U.K., Ireland, Australia and New Zealand. But over the past half-century, many local and provincial governments have tried to stop the expansion of urban areas (so-called “sprawl”) by means of urban growth boundaries, greenbelts and other containment strategies.

Though pleasing to planners, the results have been disastrous for middle- and lower-income households, sending housing prices through the roof, lowering living standards and even increasing poverty. International research has associated urban containment with escalating the underlying price of land, not only on the urban fringe where the city meets rural areas, but also throughout the contained area.

Canada’s current housing affordability crisis is centred in “census metropolitan areas” that have tried containment. Vancouver, which routinely places second or third least affordable of 94 major metropolitan areas in the annual Demographia International Housing Affordability report, has experienced a tripling of house prices compared to incomes. In the third quarter of last year, the median house price was 12.3 times median household income. In less than two decades, the Toronto CMA has experienced a doubling of its house price/income ratio, to 9.3.

Not surprisingly, both CMAs are seeing huge net departures, principally to less expensive markets nearby, such as Kitchener-Waterloo, Guelph, London, Nanaimo, Chilliwack and Kelowna. But these areas are also experiencing vanishing affordability as they too impose Vancouver- and Toronto-like policies.

In recent years, Canadian governments have adopted densification strategies — on the assumption that making cities more crowded will restore housing affordability. But evidence of that is limited. Yonah Freemark of the Urban Institute characterizes the literature as indicating “that upzonings offer mixed success in terms of housing production, reduced costs, and social integration in impacted neighborhoods; outcomes depend on market demand, local context, housing types, and timing.”

Like Canada, New Zealand has seen its house prices grow much faster than household incomes, also mainly because of urban containment policies. Auckland routinely ranks as one of the world’s least affordable markets. But in what may be a watershed moment for housing policy worldwide, New Zealand’s recently elected coalition government is giving up on densification and instead, with its Going for Housing Growth program, is aiming at the heart of the issue by addressing the cost of land.

Under new proposals, local governments will be required to zone enough land for 30 years of projected growth and make it available for immediate development. According to the government, local governments’ deliberate decision to restrain growth on their fringes has “driven up the price of land, which has flowed through to house prices,” and it cites research indicating that “urban growth boundaries add NZ$600,000 (C$500,000) to the cost of land for houses in Auckland’s fringes.”

The new policy will rely on a 2020 act allowing public agencies and private developers to establish “Special Purpose Vehicles” — corporations established for financing housing-related infrastructure, with the costs to be repaid by homeowners over up to 50 years. This removes the infrastructure burden from governments, as has also been done in “municipal utility districts” (MUDs) in Texas and Colorado. MUDs are independent entities empowered to issue bonds and collect fees to finance and manage local infrastructure for new developments.

New Zealand’s government believes guaranteeing plentiful access to land will result in an increased supply “inside and at the edge of our cities … so that land prices are not inflated by artificial planning restrictions.” The same strategy could help here. Unlike most urban planners, most Canadians do not want higher population density. A 2019 survey of younger Canadian households by the Mustel Group and Sotheby’s found that on average across four metropolitan areas (Toronto, Montreal, Vancouver and Calgary) 83 per cent of such families preferred detached houses, though only 56 per cent had actually bought one.

Households that move from the big city to Kitchener-Waterloo, say, or Chilliwack not only want to save money, they also want more house and probably a yard. Detached housing predominates in these affordability sanctuaries, compared to the Vancouver and Toronto CMAs.

Urban planners continue to complain about urban expansion, but that is how organic urban growth occurs. Toronto and Vancouver show that the cost of taming expansion is unacceptably high: inflated house prices, higher rents and, for increasing numbers of people, poverty. It is time to prioritize the well-being of Canadian households, not urban planners.

Wendell Cox, a senior fellow at the Frontier Centre for Public Policy, is author of the Centre’s annual Demographia International Housing Affordability report.

Alberta

Too Graphic For A Press Conference But Fine For Kids In School?

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From the Frontier Centre for Public Policy

By Lee Harding

Alberta moves to remove books after disturbing content, too graphic for media to view, was found in schools

Should elementary school children be given books to read with harsh insults against minorities, depictions of oral sex, and other disturbingly graphic and explicit content?

Such books have been in some Alberta elementary schools for a while, and in many school libraries across Canada.

In late May, the Alberta government announced it would establish new guidelines regarding age-appropriate materials in its schools. A government press release included quotes with disturbing content, but at a press conference, Education Minister Demetrios Nicolaides said some book illustrations could not be shown.

“I would show these images to all of you here and to the media, but they are too graphic for a live-stream media event. These examples … illustrate the kind of content that raises concerns amongst parents,” Nicolaides said.

You don’t say? This seems like the sort of stuff no one, except a pervert in a park, would dream of showing to a child. Ironically, the inability to publicize such graphic materials is part of the reason they have been shown to children with little public awareness.

Citizens’ group Action4Canada (A4C) has claimed its activism played a pivotal role in the Alberta decision. The organization has compiled a 36-page document online with examples of objectionable content in Canadian schools. Among the worst is Identical by Ellen Hopkins, which includes graphic descriptions of a little girl being molested by her father.

A4C founder Tanya Gaw has repeatedly tried to raise concerns about objectionable books with school boards, often without success. In some cases, she isn’t even allowed on the agenda if she states her topic upfront. When she is permitted to speak, she’s frequently cut off as soon as she begins quoting from the books, preventing the content from entering the public record.

In January 2023, Gaw made an online presentation to a school board in Mission, B.C. regarding materials in their schools. As she began to screenshare what was there, some board members objected, saying such permission had not been given in advance.

One month later, the board banned Action4Canada from making any further presentations. In later media interviews, the board chair justified the decision by saying Gaw’s PowerPoint contained some graphic and “inappropriate images.”

Exactly, and that is the problem. A recent check showed Mission’s school division only removed four of 15 books A4C objected to. Gaw is just glad “Identical” is one of them.

Pierre Barns, a father from Abbotsford, B.C., made it his mission to notify school boards across Canada what was on their school shelves. An online search was all it took to confirm. A “reply all” from a board member at the Halton School District in Ontario was most ironic.

“I am concerned. This individual has included links to publications and videos which may contain illegal content,” she wrote.

“I’m not sure how to investigate the content of the email safely. Would you please advise us whether or not this person ought to be reported to police? Is there some action we should take?”

There probably was action they should have taken, such as removing the books, but that never happened. Later, they defended a biologically male teacher in their school division who made international headlines by wearing large prosthetic breasts to school.

The Alberta government has committed to conducting public consultations before implementing new policies. It’s a good time for parents and citizens there and in other provinces to speak up. A young mind is a terrible thing to corrupt, but unfortunately, some schools are part of this corrosive effort.

Lee Harding is a research fellow with the Frontier Centre for Public Policy.

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Economy

Canada Treats Energy As A Liability. The World Sees It As Power

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From the Frontier Institute for Public Policy

By Marco Navarro-Genie

Research VP Marco Navarro-Genie warns that Canada’s future hinges on building energy infrastructure, not just expanding pipelines but forging a true North American energy alliance. With global demand rising and authoritarian regimes weaponizing energy, Ottawa’s dithering costs Canada $70 million daily. Sovereignty isn’t secured by speeches but by infrastructure. Until Canada sheds its regulatory paralysis, it will remain a discount supplier in a high stakes geopolitical game. Time to build.

Canada has energy the world is begging for, but ideology and red tape are holding us back

As Prime Minister Mark Carney met with U.S. President Donald Trump recently, energy should have been the issue behind every headline, whether mentioned or not. Canada’s future as a sovereign, economically resilient country will depend in no small part on whether the country seizes this moment or stalls out again in a fog of regulatory inertia and political ambivalence. Canada holds an underleveraged strategic card: the potential to be the world’s most reliable democratic energy supplier. Recent trade figures show Chinese imports of Canadian crude hit a record 7.3 million barrels in March, a direct result of newly expanded access to the Pacific via the Trans Mountain Expansion (TMX), a federally owned pipeline project that now connects Alberta crude to global markets through British Columbia’s coast. But one pipeline does not make a national strategy. Demand in Asia is growing fast. India is among the hungriest, but Canada’s infrastructure is nowhere near meeting that demand.

This matters not just for Canada, but for the United States as well. In a world where energy markets are weaponized and strategic reserves manipulated by authoritarian regimes, the case for a coordinated North American energy alliance is stronger than ever. Such an alliance should not erode national sovereignty. It should reinforce it, allowing Canada, the U.S. and Mexico to insulate themselves collectively from supply shocks and geopolitical blackmail while projecting democratic strength abroad.

But for that alliance to work, Canada must be a credible partner, not merely a junior supplier shackled by Ottawa-induced internal bottlenecks. While the U.S. has leveraged its shale revolution, LNG capacity and permitting reforms to pursue energy dominance, Canada dithers. Projects languish. Investment flees. And meanwhile, Canadian oil continues to flow south at a steep discount, only to be refined and resold, often back to us or our trading partners, at full global prices.

Yes, you read that right. Canada’s oil and gas is sold at a discount to U.S. customers, and that discount costs Canada more than $70 million every single day. The Frontier Centre for Public Policy has developed a real-time tracker to monitor these losses. This pricing gap exists because Canada lacks sufficient pipeline infrastructure to access overseas buyers directly, forcing producers to sell to the U.S., often at below-market rates.

Such massive losses should be unacceptable to any government serious about economic growth, geopolitical influence or environmental integrity. Yet Ottawa continues to speak the language of ambition while legislating the mechanics of paralysis. Stephen Guilbault’s statement that Canada already has enough pipelines speaks to more paralysis..

Canada’s energy infrastructure challenges are not just economic; they are matters of national defence. No country can claim to be secure while relying on another’s pipelines to transport its energy across its own territory. No country can afford to leave its wealth-producing regions boxed in by regulatory choke points or political resistance dressed as environmental virtue.

Our energy economy is fragmented. Western hydrocarbons are stuck inland and must pass through the U.S. to reach Eastern Canada or global markets eastward. This weakens national unity and leaves us exposed to foreign leverage. It also creates strategic vulnerabilities for our allies. American industries depend on Canadian crude. So do U.S. Gulf Coast refineries. And while American officials continue to treat energy as a tool of diplomacy and economic leverage, using energy exports to build alliances and reduce reliance on unstable regimes, Canada treats it as a domestic liability.

We need to shift the frame. Infrastructure isn’t just about steel in the ground; it’s the backbone of strategic autonomy. Pipelines, export terminals and utility corridors would allow Canada to claim its place in the emerging geopolitical order. They would also signal to global investors that Canada is open for business and capable of delivering returns without political obstruction.

The U.S. wants a stable, competent partner to help meet global energy needs. Increasingly, so does the rest of the world. But until we address our internal dysfunction and build, we’re stuck. Stuck watching global opportunities pass us by. Stuck selling low while others sell high. Stuck in a conversation about sovereignty we’re not structurally equipped to address, let alone win.

When Carney meets with Trump again, he would do well to remember that economic independence, not rhetorical unity, is the bedrock of sovereignty. Without infrastructure, Canada brings only words to a hard-power conversation.

Paraphrasing Thomas Hobbes, energy covenants without infrastructure are but words. It’s time to stop posturing and start building.

Marco Navarro-Genie is the vice-president of research at the Frontier Centre for Public Policy. He is co-author, with Barry Cooper, of Canada’s COVID: The Story of a Pandemic Moral Panic (2023).

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