Affordable Housing Crisis- Assignment

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Title: Unpacking the Wickedness of the Canadian Housing Crisis Abstract: The housing crisis in Canada is a complex problem. This article explores its challenges, including its complexity, unintended consequences, regional differences, and conflicts among stakeholders. It also suggests a mitigation strategy through a stakeholder diagram. Introduction: The Canadian housing crisis is not a simple problem with a straightforward solution. It falls into the category of wicked problems, which are characterized by their complex, interconnected, and indefinable nature. Understanding the complexity of wicked problems and their effects is crucial to understanding the Canadian housing crisis. This article aims to explore various aspects that make the housing crisis in Canada a challenging issue for policymakers and stakeholders. Concept of Wicked Problems vs. Straightforward Problems: Wicked problems are fundamentally different from straightforward problems. Unlike straightforward problems that have clear, well-defined solutions, wicked problems resist easy solutions and often result in unintended consequences. Wicked problems lack clarity in both their aims and solutions, and are subject to real-world constraints whichhinder risk-free attempts to find a solution (Wong, E. (2023, October 16). Wicked problems exhibit several key attributes, including complexity, uncertainty, ambiguity, and regional variability. These problems require ongoing management and adaptability because they do not have definitive solutions (Rittel & Webber, 1973). Analyzing the Canadian Housing Crisis as a Wicked Problem: The Canadian housing crisis exemplifies the characteristics of a wicked problem. The first aspect to consider is problem definition, which is particularly challenging due to its complicated nature. This crisis encompasses skyrocketing home prices, a lack of affordable rental housing, homelessness, and property speculation, making it difficult to precisely define the problem (Sharma, 2022). The ratio of home prices to household incomes surged to historical extremes last year (Colmar, 2023)

Interconnected issues further contribute to its wickedness. The housing crisis involves various dimensions, including economic factors, zoning regulations, immigration trends, and social inequality. Changes in one dimension can lead to unexpected consequences in others, creating a web of interconnected issues that defy straightforward analysis. Unintended consequences of interventions further highlight the complexity of the crisis. For instance, government subsidies or restrictions can result in unexpected outcomes, such as exacerbating affordability issues or overheating certain housing markets for instance Lenders are reporting an alarming increase in the number of homeowners unable to fulfill their mortgage obligations once their interest rates were reset higher (Colmar, 2023) . Unfortunately, Canada’s very high levels of household debt — and the highest in the G7 — makes the economy vulnerable to any global economic crisis (Aled ab Iorwerth, 2023). Housing supply picture improving but Canada still needs 3.5 million more new homes by 2030. ( Evans, P. (2023, September 13)) . Moreover, Regional variability adds another layer of complexity. The housing crisis varies significantly by region, with cities like Vancouver and Toronto facing different challenges from smaller towns as they attracting home investors across globe (McMullen, T. (2015, April 3). This regional disparity makes a one-size-fits-all solution almost impossible. Stakeholder disagreements form a central part of the crisis. Each stakeholder group has conflicting interests, such as affordability versus profitability or homeownership versus rental options. These disagreements further compound the intricacy of the issue.

Stakeholder Diagram: The stakeholder diagram provides a visual representation of the key stakeholders involved in or affected by the Canadian housing crisis. These stakeholders represent a diverse array of interests, and understanding their positions is vital to comprehending the challenges associated with the housing crisis. Government Entities: 1. Federal Government: The federal government is deeply involved in addressing the housing crisis due to concerns about national economic stability, housing affordability, and social welfare. They argue for balanced policies that promote housing affordability and stimulate economic growth while striving to avoid an overheated housing market that might lead to a future economic crisis. For example , In acknowledging that Canadians face a housing crisis, Prime Minister Justin Trudeau announced in London, Ont., the first federal cash to come from the Housing Accelerator Fund . (Quadri, O. (2023, September 14)) 2. Provincial Governments: Provincial governments are actively involved because they set land-use policies, rental regulations, and manage social housing programs. They advocate for policies that consider regional economic disparities and aim to ensure that housing policies are in line with the unique needs of their provinces. They often argue for greater flexibility in implementing regulations to promote both economic stability and social well-being.

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3. Local Municipalities: Local municipalities are involved due to their direct responsibility for zoning and urban planning, which significantly influences housing supply and affordability. They argue for policies that promote responsible urban development, consider environmental sustainability, and address the specific needs of their communities while ensuring that affordable housing options are available for residents. 4. Central Banks (Mortgage Rate Setter): Central banks aim to maintain monetary policy flexibility to influence mortgage rates according to economic conditions, supporting overall economic stability. They seek a balance between promoting homeownership and preventing housing bubbles. This role is vital for ensuring responsible lending practices and managing housing affordability. Housing Industry and Development: 5. Real Estate Developers: Real estate developers are central to the housing crisis due to their pursuit of profit through property development. They argue for policies that favour property development and profitability, often advocating for a streamlined approval process and reducing regulatory barriers to development. 6. Industry Groups: Industry groups representing the construction, real estate, and housing sectors are actively involved as they seek policies that support the growth and sustainability of their industries, thereby contributing to overall economic growth. They argue for policies that stimulate economic activity within their sectors, such as incentives for housing construction and development. 7. Construction Unions: Unions representing construction workers have a stake in housing construction and development. They advocate for fair wages, safe working conditions, and ensuring that housing projects provide job opportunities for their members. Housing Market Participants: 8. Homebuyers: Homebuyers are involved because they seek affordable housing options and a stable housing market. They argue for policies that increase housing affordability, create stable property markets, and provide homeownership opportunities. They often advocate for measures such as first-time homebuyer incentives 9. Renters: Renters are engaged due to their need for access to affordable rental properties. They argue for policies that strengthen tenant rights through rent control measures and affordable housing construction (CMHC, 2022). Their advocacy may include calls for rent control measures and affordable housing construction. 10. Investors and Speculators: Real estate investors and speculators participate in the housing market as a means of generating profit. Their interests can influence housing prices and speculation dynamics. Non-Profit and Advocacy Groups: 11. Advocacy Groups: Advocacy groups dedicated to housing rights, affordability, and addressing homelessness actively raise awareness about housing issues. Their positions often focus on changing public policy to better support helpless populations.

12. NGOs (Non-Governmental Organizations): NGOs specializing in support services for vulnerable populations are involved in addressing housing challenges. They advocate for policies that support their efforts in aiding them and addressing housing-related issues. Their positions emphasize the importance of funding and resources to provide essential services. 13. Indigenous Communities: Indigenous communities are involved to protect their land rights and address their unique housing needs. They argue for policies that respect their land rights, acknowledge cultural and historical significance, and ensure that housing solutions respect their traditions and values. 14. Environmental Organizations: Environmental groups focus on sustainable urban development and the impact of housing construction on the environment. They advocate for policies that encourage eco-friendly and energy-efficient housing solutions. 15. Youth and Student Organizations: Younger generations and students often face housing challenges, including affordability and housing availability. These groups advocate for policies that cater to their unique housing needs, such as affordable student housing. 16. Elderly and Seniors Advocates: Organizations representing the elderly and seniors are concerned with housing options suitable for their needs, such as accessible housing and supportive living arrangements. 17. Community Development Associations: Local community development organizations play a role in shaping housing policies that align with the cultural and social fabric of their communities. 18. Social Service Providers: Organizations providing social services to vulnerable populations, including the homeless, advocate for housing policies that address homelessness and provide support for those in need. 19. Healthcare Professionals: Healthcare workers have an interest in housing as housing conditions can impact public health. They may advocate for policies that address health- related housing issues. 20. Cultural and Arts Communities: Cultural and arts communities may advocate for affordable housing for artists and cultural workers to ensure that vibrant cultural scenes continue to thrive in urban areas. Specialized Interests: 21. Economic Think Tanks: Think tanks specializing in economic policy analyze the housing crisis's economic implications. They may advocate for policies that consider the broader economic impact of housing decisions. 22. Secondary Housing Markets: Stakeholders involved in secondary housing markets, such as vacation home rental platforms, may have an interest in housing policies that affect these markets. Mitigation Strategy: While acknowledging that wicked problems do not have definitive solutions, we can propose a strategy to mitigate aspects of the housing crisis.

1. Increasing Affordable Housing: Prioritizing the construction of affordable housing units, with incentives for developers to align affordability with local income levels and sustainability (CMHC, 2020). 2. Regulating Property Speculation: Implementing regulations to discourage speculative practices, such as higher property taxes for non-residents and limitations on short-term rentals (Sharma, 2022). 3. Enhancing Rental Protections: Strengthening tenant rights through rent control policies and improved legal frameworks for tenant protection ( Department of Finance Canada, 2022). While this strategy offers benefits like improved affordability and housing security, challenges include potential resistance from real estate stakeholders. Balancing economic interests with housing stability is a complex task, demanding careful consideration of economic impacts and regional variations. This collaborative approach aims to gradually alleviate the complex challenges posed by the housing crisis. Conclusion: Analyzing the Canadian housing crisis as a wicked problem has illuminated the complexity of the issue, the conflicts among stakeholders, and the regional disparities. The dynamics of these stakeholders are complex, each with diverse interests and positions. The housing crisis is unlikely to have a definitive resolution, but mitigating strategies can help alleviate its effects over time. It will require ongoing collaboration and adaptability among stakeholders to address the various dimensions of the problem. While the timing of potential resolution remains uncertain, systematic efforts can lead to gradual improvements in housing affordability and accessibility. References: 1. Wong, E. (2023, October 16). What Are Wicked Problems and How Might We Solve Them? . Interaction Design Foundation - IxDF. https://www.interaction-design.org/literature/article/wicked-problems-5-steps-to- help-you-tackle-wicked-problems-by-combining-systems-thinking-with-agile-methodology 2. Rittel, H.W.J., Webber, M.M. Dilemmas in a general theory of planning. Policy Sci 4 , 155–169 (1973). https://doi.org/10.1007/BF01405730 3. Canada Mortgage and Housing Corporation. (2022). Canada’s Housing Supply Shortage: Restoring affordability by 2030. https://www.cmhc-schl.gc.ca/en/blog/2022/canadas- housing-supply-shortage-restoring-affordability-2030 4. Canada Mortgage and Housing Corporation. (2020). Affordable housing programs across Canada. https://www.cmhc-schl.gc.ca/en/professionals/industry-innovation-and- leadership/industry-expertise/affordable-housing/develop-affordable-housing/provincial- territorial-programs-programs 5. Department of Finance Canada. (2022). Making Housing More Affordable. https://www.canada.ca/en/department-finance/news/2022/04/making-housing-more- affordable.html 6. Sharma, N. (2022, March 24). Yes, Canada Has a Housing Affordability Crisis. Is It the Federal Government’s Fault? https://storeys.com/canada-housing-affordability-crisis-federal- government/

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7. Colmar, P. (2023, September 12). Canada’s housing bubble: ‘Sliding down the slippery slope of hope’. https://www.theglobeandmail.com/business/commentary/article-canadas- housing-bubble-sliding-down-the-slippery-slope-of-hope/ 8. Quadri, O. (2023, September 14). Morning Update: Trudeau unveils housing funds for London, stays mum on broader plan. The Globe and Mail. https://www.theglobeandmail.com/politics/article-trudeau-unveils-housing-funds-for- London-offers-no-details-on-broader/ 9. Evans, P. (2023, September 13). Housing supply picture improving but Canada still needs 3.5 million more new homes by 2030, CMHC says. CBC News . https://www.cbc.ca/news/business/cmhc-canada-housing-supply-1.6176684 10. Aled ab Iorwerth. (2023, May 23). Risks to Canada's economy remain high as household debt levels continue to grow. https://www.cmhc-schl.gc.ca/blog/2023/risks-canadas-economy- remain-high-household-debt-levels-continue-grow 11. McMullen, T. (2015, April 3). Why are Vancouver homes among the most expensive in North America? Financial Times. https://www.ft.com/content/80837826-d24a-11e4-ae91- 00144feab7de

Affordable Housing Crisis- Assignment

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