Thank you very much. I think this is my cue.
Mr. Chair, members of the committee, thank you for inviting us to discuss a challenge that's affecting millions of Canadians: the housing crisis.
My name is Isabelle Demers. I'm the vice-president of strategic development, public affairs and innovation with the Association des professionnels de la construction et de l'habitation du Québec, or APCHQ. With me is David Goulet, our economic director.
Founded in 1961, the APCHQ represents and supports more than 28,000 businesses in Quebec's residential construction and renovation industry. That probably makes it the largest association of its kind in Canada. It's also a voluntary membership association that encompasses the entire construction sector.
We are here because of the historic crisis affecting the entire country, as we all know. We are facing the first generation since 1971 that may not have access to home ownership. This is happening while the retirement wealth gap between homeowners and renters is five to one. The risk of individual and collective impoverishment should concern all legislators.
Evidently, this comes on top of increased pressure on the affordable rental market, rising rents, costs and mortgages, and stagnating housing starts, while housing needs persist.
According to CMHC, Quebec alone will need to build one million new homes by 2035 to restore affordability, which means doubling annual housing starts.
The urgency of the situation calls for coordinated and coherent action among all stakeholders and levels of government.
The APCHQ identifies three priority areas for action.
The first is to increase supply in all its forms. This requires support for smaller businesses and a degree of industrialization of construction processes. Simplification is also needed. The accumulation of regulations, processes and programs must be reviewed. The lack of harmonization in the building codes and requirements that vary from one municipality to another all hinder the scaling up of residential projects.
On the program side, for example, the APH select program must be updated. Its criteria are still based on 2019 data. Transparent criteria must be established for CMHC's financial capacity review to large borrowers, and massive investment in water infrastructure must continue. Building is not enough. Connection to services must follow. Another example is that the affordability definition changes from one program or organization to another. This is very confusing for builders.
Second, we need to promote home ownership, because renting or owning should be a matter of choice, which is not the case at the moment. The GST relief is an excellent step in the right direction, but it helps only with the purchase of new property. We recommend relaunching the CMHC first-time homebuyer incentive with enhanced eligibility criteria, and making the HBP and the FHSA intergenerational programs.
Third, we need to maintain and improve the existing housing stock through renovation. The most affordable building is the one that already exists, yet there are currently no real meaningful incentives to renovate. The benefit of renovation, when tied to energy efficiency gains, becomes a real win-win-win situation. Therefore, programs that motivate action in the short term and at scale must be strengthened.
In closing, members of the committee, the housing crisis is certainly a collective challenge that demands vision and consistent, concerted action by all orders of government and industry stakeholders. The APCHQ will continue to be an active collaborator in building a future in which everyone has access to affordable, sustainable, high-quality housing.
Thank you. My colleague and I are available to answer your questions.