Momentum is building for new homeownership solutions in Canada

We have a homeownership crisis in Canada. Governments at all levels are adopting the ‘attainable housing’ term to refer to the issue of declining accessibility of homeownership. Canadians are struggling with soaring home prices and high interest rates, and millions have given up on the dream of building wealth with their homes. From talent exodus to immigration appeal to the ever-increasing wealth divide, the negative impacts to our society are profound and growing. Attainable housing must address policies around tax, zoning, permitting, and financial incentives to reduce red tape and costs, and we must look at technology, labour markets, and supply chain opportunities to build more supply more quickly and cheaply. We must also address the way that people buy homes—the roles of equity and debt capital—in creating a more attainable homeownership market with less systemic economic risk. We haven’t innovated in the way that people buy homes in hundreds of years, placing the entire economic burden on the buyer, and where investor capital acts as a competitor that keeps people stuck renting for far too long. That’s why Key is excited to partner with both the federal and Ontario governments—and soon other governments across Canada—to create a public-private partnership, and introduce attainable homeownership at scale. At Key, we are seeing more openness than ever for collaboration between government, banks, and developers to work together to address the homeownership crisis. Our financial technology platform allows private capital to partner with aspiring homebuyers to get them into the game incrementally and affordably. We support multiple partnership models including co-ownership, down payment assistance, and rent-to-own. We have successfully launched a form of co-ownership between resident and passive investor that lets people get started with just 2.5 per cent down and no mortgage. Now renters have a true ownership stake from day one, and build their home equity position over time, qualifying for a mortgage, and becoming 100 per cent owners when they’re better able to do so. People locked out of homeownership are desperate for innovative solutions. I recently spoke to a mother in Toronto who had lost all hope for her kids to ever own a home until she found Key last year. Now, she and one of her sons are proud of the home that he co-owns with a private investor, and they have a workable plan for him to become the full owner over the next several years. Their story is one in a broad spectrum of Canadian stories of hope, for young people, frontline workers, new immigrants, gig workers, self-employed entrepreneurs, and small business owners—those who can’t yet qualify for a traditional mortgage, but want the benefits of owning a stake where they live and building wealth with disciplined investment. This can only be achieved with governments leading the way with affirmative policy, and some fiscal stimulus to start the snowball rolling down the hill. This year’s federal budget must be commended for efforts to create more affordable rental housing. However, there must be more action on attainable homeownership. Canadians want and deserve more options on both ownership and rental fronts. Recognizing the potential of attainable housing, the Government of Ontario has taken steps to address the issue, recently naming an associate minister dedicated to attainable housing. In British Columbia, the government has introduced grants and incentives for developers to create more co-ownership opportunities, and the Premier David Eby recently acknowledged that the public and private sectors must work together to deliver funding for affordable homeownership. We need a future where every Canadian can believe in the dream of homeownership. Attainable housing will build a stronger and more equitable foundation for our communities, and momentum within the national landscape brings opportunity for innovation fueled and scaled by public-private collaboration. We need an all-hands-on deck approach to expand and grow the attainable housing sector, with massive potential impact on our economy and society. Rob Richards is co-founder and CEO of Key and is a technology operations veteran with 40 years of experience in tech, real estate, and venture capital. The Hill Times