New Housing Minister Sean Fraser says immigration can help solve housing problems

Canada's new Minister of Housing and Infrastructure says that closing the doors to newcomers is not a solution to the country's housing problems. Instead, accepting more immigrants helps with building more houses. Sean Fraser, who was previously the Minister of Immigration, was sworn in as the Minister of Housing on Thursday morning.

He takes on this responsibility at a time when population growth through immigration has increased the demand for housing. This is happening while Canada is grappling with an economic crisis.

After taking the oath, Fraser told reporters, 'We should not close the doors to newcomers as a way to address housing challenges. Instead, immigration will be part of the solution to the housing challenge.'

He went on to say, 'When I used to talk to construction companies as the Minister of Immigration, one of their main obstacles to completing construction projects was a shortage of labor for building houses.'

Fraser emphasized that if we encourage cities and communities to build more housing where infrastructure exists or is planned, we can make more progress. He said the goal is to look at housing projects and infrastructure together, not separately.

Ahmed Hussen, who became the Minister of Housing in 2021, faced criticism as the housing crisis worsened across the country but remained in the cabinet as the Minister of International Development.

Tyler Meredith, the former Chief Economic Strategist and Planner of the Trudeau government, said, 'Fraser's move from the Minister of Immigration to Housing shows that the federal government knows these two issues are related.'

Canada's population increased by over one million people in 2022, a pace that has put pressure on housing demand and, in turn, increased prices.

Recent analysis by BMO showed that for every one percent increase in population growth, housing prices usually rise by three percent. The Liberals have faced strong criticism for the state of the housing market from Erin O'Toole, the leader of the Conservative Party, who blamed the Trudeau government for this crisis.

The 39-year-old Fraser, during the press conference, referred to the affordability of housing as a major challenge faced, especially by Canadian youth like himself and younger, who are trying to enter the market. He said, 'This is a real challenge for people my age and younger trying to get into the market, but it is also a challenge for low-income families. There is certainly no simple solution, but if we can build more homes, more people can enter the market. If we can support low-income individuals as well, significant change will happen.'

The housing crisis, which was once confined to Vancouver and Toronto, has now spread throughout Canada, and according to experts, the cause is a shortage of housing.

Housing and Mortgage Canada has warned that in order to restore affordable housing prices, Canada needs to build another 3.5 million homes by 2030.

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