There was a strong human manipulation behind the 1997 Asian financial crisis, but it also exposed the serious weaknesses of the Southeast Asian financial system. Today we are facing the housing crisis, No one denies the existence of Canada's George Soros. What we always ignore is the problem of the housing policy system itself.
House sales and rentals are two distinct and closely connected markets. The rise in house prices will inevitably have a huge impact on the rental market. Our current housing assistance is mainly for the rental market, whether it is rental housing, rental assistance, social housing, all are facing renters. Meanwhile, subsidies and help are mainly targeted at mental health, disability, homeless, senior, addiction, and the recipients are extremely limited. The impact of rising house prices is extremely wide, even the people who have high-paid job cannot afford to buy a new house.
The government lacks measures to control housing prices. Once housing prices rise, more and more people will need help, and the government doesn't have enough resources to give support. Current housing system has many problems and need to be fixed.
Singapore had also faced serious housing crisis and homeless issue. Today, most Singaporeans have their own house, Singapore's experience is worth learning.
In brief, learning Singapore's experience, the three levels of government may take the following measures to fundamentally change the housing policy system:
First, establish a public housing market , the government funds the construction of public housing, this public housing is not for renters, people may own the property rights.
Second, establish a housing provident fund system, an employment based savings scheme with employers and employees contributing a mandated amount to the Fund. The funds in the provident fund account can only be used for down payment. If it is not used, it can only be taken out after the age of 55.
Third, set different application requirements based on income. For example, very low income people can rent first and buy later. If your salary exceed a certain level, you are not eligible to buy public housing, and so on.
Fourth, establish a secondary market for public housing flats, Each person can only apply for a maximum of two flats in their lifetime. Selling public housing flats must meet certain conditions.
Fifth, when both parents and children apply for public housing, adjacent locations will be arranged, the government also gives certain discounts , multi generations living together will be helpful for different generations to take care of each other.
Sixth, implement the quota system when allocating public housing flats, and different ethnic groups and different backgrounds are given corresponding quotas to promote ethnic integration.
The establishment of the public housing market can greatly ease the pressure on the rental market, and the government can reduce the high cost in the construction of rental housing. In another word, the fundamental concept should be that everyone can afford to buy a house instead of focusing on a few people renting a house.
Singapore does not have a large number of rental housing, social housing, but there are no homeless people in Singapore. Singapore’s experience can also succeed in Canada.
In addition, in view of the facts that Canada has vast territory, and most of new immigrants like to settle in high density cities, the federal government and the provincial government need to make or revise the corresponding immigration policies , so that more new immigrants can settle outside of major metropolitan area. From the perspective of the external environment, this is the cure.