Thank you very much, Mr. Chair, for the opportunity to be here. We are privileged and honoured to be before the committee today. We appreciate the opportunity to provide our comments on the design and rollout of the proposed housing accelerator fund, as well as to provide some suggestions regarding how the government can build on the federal lands initiative to help increase housing supply.
By way of background, the Appraisal Institute of Canada has over 5,600 members that annually complete over one million appraisals, with a value of over one trillion dollars' worth of real property. Our members provide independent third party opinions of value on residential, commercial, agriculture and industrial real property. This also includes machinery and equipment.
Professionally qualified and designated appraisers continue to be an essential part of Canada's real estate market. Working alongside home builders, realtors, mortgage brokers, developers and homebuyers, appraisers form an integral part of Canada's real estate market. Our members work to meet internationally recognized evaluation standards that help to mitigate risks and stabilize the real estate market by ensuring that lenders, insurers, consumers and others make informed decisions. Appraisers also work with governments at all levels to ensure values are accurately expressed and that policy objectives are met. This includes work on property tax, feasibility studies, expropriation, as well as acquisition and disposition.
As a self-regulatory body, we have a strong focus on consumer protection. We maintain a rigorous disciplinary process and provide a mandatory professional liability insurance program to help protect consumers and our members' clients.
We are also proud to say that we have recently created a council on equity, diversity and inclusion to expand opportunities for aspiring appraisers and to do our part to help combat bias and discrimination in the real estate market.
Now for the subject and discussion that is before us today, which is addressing Canada's housing crisis by, in part, bringing on additional housing supply to the market.
I should say that rising housing prices is not a new issue. Over the past decade, federal government policies have been primarily focused on addressing the demand side of the housing continuum. While recent investments in affordable housing and the first-time homebuyer incentive have helped to alleviate some of the pressures on the housing market, more can and needs to be done.
The pandemic has highlighted the need for more targeted policies to help increase the supply of housing in Canada. While affordable housing initiatives have had some positive impact, housing affordability continues to be a major issue for middle-income Canadians. Demand is expected to persist given several factors, including strong household formation and immigration rates that are set to return to prepandemic levels.
Supply and demand factors have historically shown themselves to be one of the major drivers of housing prices. When supply is curtailed, appraisers will see prices go up, sometimes dramatically. However, when supply increases, the competition decreases, which will, over time, put downward pressure on housing markets and prices. Regardless of what may or may not happen over the next 12 to 18 months in terms of interest rate increases and other macroeconomic uncertainties, the need for more housing units remains.
Increasing the housing supply cannot be achieved without collaboration and coordination amongst all levels of government. While there is no silver bullet or single policy that can change things overnight, we do believe supply is perhaps the most key solution to a more balanced marketplace.
The newly-announced, but yet-to-be-launched housing accelerator fund is, in our minds, a step in the right direction, but it must be implemented rapidly and should focus on housing affordability independent of and in addition to efforts focused on affordable housing. The fund must address the key challenges to new supply, which by all accounts include municipal restrictions or hurdles such as zoning, land use and development restrictions and timelines, while recognizing that Nimbyism will continue to be a factor.
Incentives to encourage efficiencies in permitting and approvals should also be included. Automation of those processes could alleviate much of the administrative burden and compress timelines.
We also believe that other initiatives should be considered, such as the Government of Canada requiring that infrastructure grants only go to areas that have mechanisms that allow for expedited development. Supporting provinces and municipalities in addressing these challenges, whether it be financially, or in some cases—and perhaps more importantly—politically, will go a long way in delivering new supply to the market.
In terms of the federal lands Initiative, whether it is to build, replace or repair existing infrastructure, or to ensure special projects are completed effectively and efficiently, government needs to make these complex and at times difficult decisions in an inclusive and consultative way, while ensuring a timely and appropriate delivery.
The importance of these decisions makes it vital that the right expertise and experience is applied throughout the decision-making process. That expertise should always include opinions of value prepared by professional appraisers.
Buying property or a place to call home is a major milestone in all Canadians' lives, and appraisers from across Canada look forward to working with government at all levels to protect Canadians and help them make informed decisions.
Mr. Chair and honourable members, we appreciate the chance to be here with you today and to share our feedback. We look forward to questions or comments you or your colleagues may have.
Thank you very much.