Speech to the Scotiabank Affordable Housing Summit

Speaking Notes for Romy Bowers, President and Chief Executive Officer, Canada Mortgage and Housing Corporation

Virtual event

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Thank you for that warm introduction. It’s a pleasure to be here.

I’m joining you from Toronto, on the traditional territory of many nations, including the Mississaugas of the Credit, the Anishnabeg, the Chippewa, the Haudenosaunee and the Wendat peoples, and now home to many diverse First Nations, Inuit and Métis peoples.

I want to say at the outset that I’m really looking forward to the Q&A session at the end of my remarks. I should note, however, that I will not be able to comment on sensitive public policy issues due to the recent federal election.

Six years ago, when I joined CMHC as Chief Risk Officer, the topic of housing affordability wasn’t on the radar of most financial institutions.

At that time, most of us were familiar with CMHC because of its mortgage loan insurance and securitization programs, which are key to a stable, well-functioning housing finance system and remain an essential part of our business.

But as this conference makes clear, financial institutions are becoming much more familiar with another side of our business. CMHC has a crucial mandate to improve housing affordability for everyone in Canada, with a particular focus on meeting the pressing needs of vulnerable populations.

Some of these institutions — Scotiabank among them — have recognized the importance of housing affordability and are aligning themselves with our work.

We thank them for their contributions and appreciate the confidence these institutions have shown in CMHC. This may sound bold, but it’s confidence well placed.

CMHC has been in the business of housing affordability since 1946. We’re celebrating our 75th anniversary this year, and I’m honoured to be CEO at this critical time for housing affordability, which has become a top concern for many Canadians.

As you know, CMHC is currently delivering significant federal investments in housing through Canada’s first National Housing Strategy.

The NHS is a multi—billion-dollar plan to give more Canadians a place to call home. It includes a suite of programs designed to increase the supply of affordable rental housing across the country.

We’re tracking strong progress on the NHS’s targets. But we need to do more. And we need the support of more financial institutions and other private sector partners to achieve our aspiration.

That’s why we have made “Strength Through Housing Partnerships” the theme for our National Housing Day activities, which will run from November 22nd to 26th this year.

To put the issue in context, some 1.7 million households across Canada are currently in housing need. Month after month they may be forced to choose between paying the rent and buying groceries or clothing for their children.

Chronic homelessness also continues to be a serious problem. On any given night, as many as 35,000 people across the country may be experiencing homelessness.

The COVID-19 pandemic has highlighted — and worsened — the plight of people living in precarious housing. Those most affected are already vulnerable populations — racialized people, seniors, women and children fleeing domestic violence, front-line workers, among others.

The problem has spread to the middle class in our urban centres. Nurses, teachers, shopkeepers, office workers — the people who make our cities run — can no longer afford to live in them.

We’re continuing to see house prices escalate in many centres across the country — a trend that was already underway before COVID but has gained momentum during the pandemic.

This has very real, negative consequences for our economy and society.

First, it makes it very difficult for young people to get on the property ladder, especially in larger urban centres — unless you are fortunate enough to have parents who can help with your down payment.

Escalating house prices also heighten wealth inequalities between homeowners and non-homeowners, between older and younger generations.

And low interest rates can lead to families over-leveraging themselves — which increases financial vulnerability in the event of unanticipated economic shocks.

The high cost of buying a home is having a ripple effect in rental markets, where it has also become increasingly difficult to find an affordable and safe place to call home.

The main problem underlying Canada’s housing crisis is that supply isn’t keeping pace with demand. And it hasn’t been for years.

The answer seems simple: build more housing. But that’s much easier said than done.

Some Canadian cities simply lack land to build on, often due to geographic constraints.

Other barriers include restrictive zoning and land use policies, slow permitting processes and high land costs and development fees.

And there is the issue of “not in my backyard”, or NIMBY-ism. Many homeowners simply don’t want to see new developments in their neighbourhoods.

As a country, we need to break down these barriers and explore new models of city building — because housing unaffordability hurts all Canadians.

It erodes economic growth. Employers find it harder to attract and retain workers when housing isn’t affordable. Households have less disposable income to spend on other goods and services.

It hinders social inclusion, especially for already marginalized groups, and leads to more homelessness.

As I noted earlier, it also drives inequality. Young people find it increasingly difficult to enter the housing market.

And it’s harmful to the environment. Urban sprawl and low-density communities increase carbon emissions from both vehicles and homes.

In short, a lack of affordable housing threatens our collective vision of Canada as an inclusive and prosperous society.

At CMHC, we’re leading the way, as we should, to make housing affordable for everyone in Canada. Our aspiration is that by 2030, everyone in Canada has a home that they can afford and that meets their needs.

Luckily, we aren’t alone. We have many partners who are equally committed to making housing affordability a reality for all Canadians. This conference is evidence of that.

Even so, it’s clear that we need to do more — we need a broader, whole-of-society response to the housing affordability crisis.

We need to work with both existing and new partners, engaging all participants and levels of government. And we need to think differently about how we work together.

For our part CMHC will be prioritizing the areas where we can have the greatest impact. At the same time, we’ll be harnessing the power and imagination of others — including the private sector — to achieve our aspiration.

I’m pleased to say that the financial sector has been one of the first partners to get on board.

Scotiabank was the first of the big six banks to align itself with CMHC’s aspiration, with a plan to mobilize $10 billion over the next decade to develop innovative lending, investing and underwriting solutions for retail, commercial and corporate clients who support our 2030 goal.

Other lenders have also launched special programs to support affordable housing. These investments show great leadership and commitment and will help move the needle towards 2030. We hope to see many more banks and other financiers follow their lead.

But we need other sectors and businesses involved as well. And they don’t all have to be large, multi-billion-dollar entities. Let me give you some examples.

In 2018, Dr. Alina Turner, who came to Canada as a refugee more than 20 years ago, and her husband Travis worked with the City of Medicine Hat to launch HelpSeeker — an app that matches Canadians in need with social services and supports in their community.

For example, someone at risk of homelessness can search their local area and find supportive housing, just by using their phone. The app is now being further developed and refined, and is expanding into more communities across the country.

Housing developers can also contribute. In Summerside, a local construction company — Arsenault Bros. Construction — decided to tackle the problem of historic low vacancy rates by building a 70-unit project. Thanks to the company’s focus on affordability, a significant portion of the units are available at below-market rates.

And with Remembrance Day less than a week away, another great example is Veterans’ House: The Andy Carswell Building in Ottawa. Led by Multifaith Housing Initiative, this 40-unit supportive housing project is the first of its kind in Canada, designed specifically to meet the unique needs of veterans.

Incidentally, these projects have all been supported by CMHC through the National Housing Strategy.

So I will end my remarks today with a challenge — a call to action. What is your company doing — or what can it do— to be part of the solution to Canada’s housing crisis? What innovative ideas can you bring forward that will add to the momentum that is building across the country?

Thank you for inviting me to join you today and for taking the time to learn about why CMHC is so passionate about what we do. I encourage you participate in one of our National Housing Day activities to learn more about how you can support our nation-building work. Thank you.