Federal Program Spending on Housing in 2022

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Communications

Quotes

• Our analysis indicates that only a fraction of the $89 billion total investment in the NHS comes at a net fiscal cost to the federal government. As well, a portion of the program funding announced to date is not new spending but part of spending for pre-existing programs in place prior to the NHS.

• While federal investments in addressing affordable housing and homelessness have increased, so too has the cost of residential construction, reducing the real purchasing power of federal spending.

News Release

{"id":43,"created_at":"2023-02-15T13:55:07-05:00","updated_at":"2023-02-16T09:03:49-05:00","slug":"new-federal-money-for-housing-affordability-buys-less-as-construction-costs-rise-says-pbo-selon-le-dpb-les-nouveaux-fonds-federaux-pour-labordabilite-du-logement-ont-un-moins-grand-pouvoir-dachat-tandis-que-les-couts-de-construction-augmentent","title_en":"New federal money for housing affordability buys less as construction costs rise, says PBO","title_fr":"Selon le DPB, les nouveaux fonds f\u00e9d\u00e9raux pour l\u2019abordabilit\u00e9 du logement ont un moins grand pouvoir d\u2019achat tandis que les co\u00fbts de construction augmentent","body_en":"The Parliamentary Budget Officer (PBO) has released an updated assessment of the National Housing Strategy (NHS), the federal government\u2019s plan to address housing affordability and homelessness.\n\nThe PBO\u2019s latest report, \u201cFederal Program Spending on Housing in 2022,\u201d estimates that the federal government has committed over $89 billion to fund the NHS over the period from 2018-19 to 2028-29, which is $7 billion more than the Canada Mortgage and Housing Corporation\u2019s (CMHC)\u2019s most recent forecast. \n\n\u0022Our analysis indicates that only a fraction of the $89 billion total investment in the NHS comes at a net fiscal cost to the federal government. As well, a portion of the program funding announced to date is not new spending but part of spending for pre-existing programs in place prior to the NHS,\u201d says Yves Giroux, PBO.\nThe federal government announced additional investments of $7.8 billion in Budget 2022 and the 2022 Fall Economic Statement. \n\n\u201cWhile federal investments in addressing affordable housing and homelessness have increased, so too has the cost of residential construction, reducing the real purchasing power of federal spending,\u201d adds Mr. Giroux.\n\nThe report also finds that within certain programs supported through the NHS there is no standard definition of affordability. This can lead to the construction of units presented as \u201caffordable\u201d but which in reality may require households to devote more than 30 per cent of their income to housing.","body_fr":"Le directeur parlementaire du budget (DPB) a publi\u00e9 une \u00e9valuation \u00e0 jour de la Strat\u00e9gie nationale sur le logement, c\u2019est-\u00e0-dire le plan du gouvernement pour s\u2019attaquer au dossier de l\u2019abordabilit\u00e9 du logement et de l\u2019itin\u00e9rance. \n\nDans son plus r\u00e9cent rapport, intitul\u00e9 \u00ab D\u00e9penses f\u00e9d\u00e9rales de programmes consacr\u00e9es au logement en 2022 \u00bb, le DPB estime que le gouvernement f\u00e9d\u00e9ral a consacr\u00e9 plus de 89 milliards de dollars \u00e0 la Strat\u00e9gie pour la p\u00e9riode allant de 2018-2019 \u00e0 2028-2029, soit 7 milliards de plus que les plus r\u00e9centes pr\u00e9visions de la Soci\u00e9t\u00e9 canadienne d\u2019hypoth\u00e8ques et de logement. \n\n\u00ab Selon notre analyse, seule une fraction de l\u2019investissement total dans la Strat\u00e9gie nationale sur le logement, qui est estim\u00e9 \u00e0 89 milliards de dollars, a un co\u00fbt budg\u00e9taire net pour le gouvernement f\u00e9d\u00e9ral. De m\u00eame, une partie du financement du programme annonc\u00e9 \u00e0 ce jour ne repr\u00e9sente pas de nouvelles d\u00e9penses, mais bien une partie des d\u00e9penses des programmes d\u00e9j\u00e0 existants avant la mise en place de la Strat\u00e9gie \u00bb, a d\u00e9clar\u00e9 Yves Giroux, le directeur parlementaire du budget.\n\nDans le budget de 2022 et l\u2019\u00e9nonc\u00e9 \u00e9conomique de l\u2019automne 2022, le gouvernement f\u00e9d\u00e9ral a annonc\u00e9 d\u2019autres investissements de 7,8 milliards de dollars. \n\n\u00ab Les investissements f\u00e9d\u00e9raux pour s\u2019attaquer \u00e0 la question de l\u2019abordabilit\u00e9 du logement et de l\u2019itin\u00e9rance ont augment\u00e9, tout comme le co\u00fbt des constructions r\u00e9sidentielles, ce qui r\u00e9duit le pouvoir d\u2019achat r\u00e9el des d\u00e9penses f\u00e9d\u00e9rales \u00bb, ajoute M. Giroux.\n\nEn outre, d\u2019apr\u00e8s le rapport, dans certains programmes financ\u00e9s par la Strat\u00e9gie nationale sur le logement, il n\u2019y a pas de d\u00e9finition standard de l\u2019abordabilit\u00e9. Il est donc possible que l\u2019on construise des logements qualifi\u00e9s d\u2019\u00ab abordables \u00bb, alors que, dans les faits, un m\u00e9nage doit y consacrer plus de 30 % de son revenu.","release_date":"2023-02-16T09:00:00-05:00","is_published":"2023-02-16T09:03:49-05:00","internal_id":"COM-2223-043","permalinks":{"en":{"website":"https:\/\/www.pbo-dpb.ca\/en\/blog\/news-releases--communiques-de-presse\/new-federal-money-for-housing-affordability-buys-less-as-construction-costs-rise-says-pbo-selon-le-dpb-les-nouveaux-fonds-federaux-pour-labordabilite-du-logement-ont-un-moins-grand-pouvoir-dachat-tandis-que-les-couts-de-construction-augmentent"},"fr":{"website":"https:\/\/www.pbo-dpb.ca\/fr\/blog\/news-releases--communiques-de-presse\/new-federal-money-for-housing-affordability-buys-less-as-construction-costs-rise-says-pbo-selon-le-dpb-les-nouveaux-fonds-federaux-pour-labordabilite-du-logement-ont-un-moins-grand-pouvoir-dachat-tandis-que-les-couts-de-construction-augmentent"}},"pivot":{"publication_id":726,"news_release_id":43}}