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The Canadian home-building industry is facing the biggest challenges in its history -- challenges that are eroding affordability for all Canadians -- challenges that must be addressed and the right time to address them is right now.
That's the message the new president of the Canadian Home Builders Association, Dave Benbow, delivered in his inaugural address at the annual CHBA conference last weekend at Lake Louise.
The message was clearly aimed at the federal government as Benbow, taking the torch from his predecessors, called for "smart government" when it comes to housing.
"Without a smart approach, government actions are often contradictory and counter-productive and all too often regulation is the first response, rather than the last resort," said Benbow, adding an unfocused and unco-ordinated approach is a barrier to effective public/private collaboration. "And, it holds back the real, practical solutions to many of the housing challenges we face as a nation."
The CHBA has for years called for the development of a national housing strategy and Benbow once again challenged the government to initiate such a program.
"It would ensure that the federal government applies a "housing lens" to its actions and initiatives," he said.
"The development of a national housing strategy will ultimately benefit government, industry and consumers alike. And the right time to do this is right now."
The housing lens should focus first on the GST, said Benbow.
"We welcome the government's commitment to lowering the GST from seven percent to five percent," he said. "As Prime Minister Harper has pointed out, on a $200,000 new home, the reduction of the GST rate to five percent, combined with the GST rebate, will result in a $4,000 saving to the homebuyer."
However, when the GST was introduced, the government of the day promised to index the rebate thresholds.
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Currently, the GST is roughly cut in half for homes priced under $350,000, but is in full force for homes priced over that amount.
With the average price of a new home in the country approaching $300,000 -- higher in some areas, including Calgary -- the right time to keep the promise is right now, said Benbow.
"New home buyers should not face a tax penalty simply because they live in a community where house prices have risen," he said.
"Indexing the rebate threshold to reflect rising prices is the fair thing to do."
A shortage of skilled labour is a serious challenge.
"The situation gets worse every day and the problem is very clear," said Benbow.
"We don't need more talk and studies. We need action. The CHBA, with the support of the Canada Mortgage and Housing Corporation, has prepared a comprehensive Human Resources Development Action Plan and the federal government, through Human Resources and Skills Development Canada, has the resources and mandate to move this plan forward, yet the department has consistently refused to do so."
Immigration policies need review, said Benbow.
"Simply put, the various immigration programs in place today either discriminate against the skilled tradespeople required by our industry or fail to recognize them altogether," he said. "We need the government to deliver action, not just words.
"And the right time is right now."