The housing supply is in a crisis, but building more houses depends on infrastructure to service them – roads, water, wastewater, etc. The Government of Canada’s contributions to infrastructure are much smaller relative to the taxes it collects than those of either provincial or municipal governments in Ontario.

The Canadian housing shortage continues to worsen. In 2003-2004, the average household would have had to devote 40% of their income to buy an average house in Ontario. In 2021, that had increased to 60%. The housing shortage has a notable impact on the economy and on employers. Individuals make their choices on where to live and work based on a trade-off between wages, house prices, and commuting costs. The housing crisis directly impacts wages, inflation, and workforce, making this an issue that affects all businesses.

By bringing their level of investment in infrastructure closer to the provincial and municipal level, the Government of Canada can not only ensure that the infrastructure to support a growing
population and an increasing demand for housing is there but send a signal to the provincial and municipal governments and to developers that they are willing and able to support the housing growth that Canada needs.

The federal tax burden on new housing in Ontario is 31%, twice the average rate for the general economy, but the Government of Canada contributes only 7.1% of the public infrastructure requirement. The taxation-to-investment ratio for the federal government is 9.7 times better than for the province and 6.9 times better than for municipal government.

The GNCC has asked that the Government of Canada step up its level of infrastructure investment and bring it into line with provincial and municipal levels.