Building Plan May Put Pressure on Home Prices, Canada Minister Says.

Canada's housing minister, Sean Fraser, has stated that the government's efforts to increase homebuilding may have the unintended effect of lowering prices in certain markets. However, Fraser clarified that the objective is to improve affordability over time, not specifically to bring down prices. The government plans to create more townhouses, fourplexes, and apartments to increase supply at affordable prices. Fraser acknowledged that there are multiple factors influencing housing prices, many of which are beyond the government's control. The government's strategy aims to strike a balance between affordability and preserving homeowners' wealth. The cost of land is a significant factor contributing to high housing prices, which is why the government is promoting higher-density projects. However, some homeowners are resistant to these projects due to concerns about their property values. The government has introduced a fund to incentivize cities to relax zoning rules and allow more multi-unit buildings. Fraser has been gradually unveiling the government's housing strategy, which includes a pledge to build 3.9 million homes by 2031. Despite these efforts, the government's popularity has not significantly improved. The Conservative Leader, Pierre Poilievre, has criticized the government for the housing shortage and has promised to require big cities to increase homebuilding or face penalties. Fraser emphasized the need for practical solutions rather than political rhetoric to address the housing crisis. [Extracted from the article]