Housing-focused federal budget a boon for Calgary youth

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The federal budget presented Tuesday promises to restore “generational justice” for younger Canadians, with a big focus on housing, although some want more immediate action in other areas.

Introducing the document in the House of Commons, Finance Minister Chrystia Freeland said it is “more difficult to settle” for young people than for older generations.

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“It’s really not fair what they’re struggling with right now,” Freeland said at a news conference later that day, before her budget speech.

The budget promised $8.5 billion in new spending over the next five years to build millions of new homes, and nearly $2.6 billion to improve student aid and grant programs and open new job opportunities.

The deputy premier’s comments and the budget’s focus on affordability echo the thoughts of many Calgary youth right now, said Meaghon Reid, executive director of Vibrant Communities Calgary, an advocacy group that focuses on issues related to affordability. poverty.

“Some promising measures, but we don’t see the urgency or level of detail we need to address immediate affordability challenges,” Reid said.

He said that while the budget makes some positive progress on affordability, the timeline remains concerning. Calgary’s vacancy rate is expected to fall to 1.1 per cent this year, according to Canada Mortgage and Housing Corp., leaving many Calgarians struggling to find housing.

“We are very satisfied with the investments in housing. . . The urgency of building new housing cannot be underestimated,” Reid said.

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Housing Needed in Calgary

In addition to the significant housing investments revealed in recent weeks, the 2024 budget contains a commitment to “unlock” federal properties across the country for leasing to housing providers. That includes federally owned land in the Currie neighborhood of southwest Calgary, which will allow for the construction of nearly 100 homes.

Mayor Jyoti Gondek told reporters Tuesday afternoon that she didn’t have any details on the matter, but that “any unit we can build will be beneficial to Calgarians.

“My concern is that while we are focused on the 60-plus people who move here every day (and we need to make sure we have housing for all of them), there are people who have lived in the city for a long time. “There are a lot of people who are struggling with affordability and housing, so we need to make sure this federal budget focuses on everyone,” Gondek said.

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Gondek lamented that the budget does not contain a solution for how Ottawa distributes funds to municipalities.

“That’s something we’ve been asking for for some time,” he said. “I would really like to see some kind of process by which provinces and municipalities can collaborate with the federal government to find a more permanent funding solution.”

Budget focuses on young voters; could affect older people

Mount Royal University political scientist Lori Williams said the budget’s focus is on young voters, the same demographic that helped bring Prime Minister Justin Trudeau to power in 2015. Promises related to affordable housing and scholarships for students work well with younger Canadians, Williams said.

“That has been pointed out quite clearly, but not exclusively, obviously,” he said. “They had job creation and that focus on this idea of ​​expanding the middle class, that will also attract young people and others.”

While a wealth tax did not have the results that were rumored, an increase in the capital gains tax (which will go from 50 percent to 66 percent on corporate profits and those that exceed $250,000 for individuals) may punish some older people who have owned their homes longer, and wealthier people and business owners. The tax is expected to bring in $19 billion to the federal government over the next five years.

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“That could be a point of some adjustment, and the Finance Minister has recognized that this is going to be controversial,” he said. “And then we’ll have to wait and see what the answer is. But to the extent that this could affect older people more than others, it is certainly a political risk that could be potentially problematic.”

Overall, planned spending in the budget will increase to $535 billion in 2024-25, compared to $497.5 billion in 2023-24. The deficit is projected at $39.8 billion, compared to $40 billion last year.

There is $11.5 billion in new spending this year and $53 billion over the next five years.

— With files from The Canadian Press

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