Climate and housing are vitally connected, and acknowledging this turns a pair of calamities into one huge opportunity.
That’s the message from the national Task Force for Housing and Climate, a cross-partisan group of former politicians and policy experts that launched in September and released their final report on March 5. The non-governmental task force convened fifteen heavy hitters from across the country, including former Conservative cabinet minister Lisa Raitt and Edmonton’s progressive former mayor Don Iveson as co-chairs, as well as economist and former governor of the Bank of Canada Mark Carney and former Toronto chief city planner Jennifer Keesmaat. The group has created a road map for 5.8 million “affordable, low-carbon and resilient” homes to be built by 2030.
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If all this sounds wildly optimistic, somewhere between wartime effort and fever dream on the scale of probabilities, well, so is the fight against climate change. One could take heart from the fact that, last fall, housing minister Fraser told the CBC “this is a wartime effort we need to adopt.” There’s also the fact that the debate over housing policy hasn’t suffered the same partisan warping that afflicts climate policy. Nobody in Canada is arguing the housing crisis is a hoax or wildly overblown; instead, every party is now competing to prove it has the best, most aggressive solution.
Inclusionary Zoning
In principle, there is no reason why population growth must push up the cost of shelter. Immigrants need homes — but they are also disproportionately likely to work in construction and, thus, increase the economy’s home-building capacity.
The problem arises when governments effectively prohibit the supply of housing from rising in line with demand. Between 2012 and 2022, Americans formed 15.6 million new households but built only 11.9 million new housing units. As a result, even before the post-lockdown surge in migration, there were more aspiring households than homes in America’s thriving metro areas.
This was largely a consequence of zoning restrictions. Municipal governments have collectively made it illegal to erect an apartment building on about 75 percent of our country’s residential land. In large swaths of the country, there are households eager to rent or buy a modest apartment, and developers eager to provide them, but zoning restrictions have blocked such transactions from taking place.
This creates a housing shortage. You can house 32 families much more quickly and cheaply by building a single apartment building than by erecting 32 separate houses. To require all of your community’s housing units to be single-family homes isn’t all that different from prohibiting the manufacture of all non-luxury cars. In both cases, you end up with artificial scarcity and unaffordability.
To ramp up supply, cities are taking a fresh look at their zoning rules that spell out what can be built where and what can't. And many are finding that their old rules are too rigid, making it too hard and too expensive to build many new homes.
So these cities, as well as some states, are undertaking a process called zoning reform. They're crafting new rules that do things like allow multifamily homes in more neighborhoods, encourage more density near transit and streamline permitting processes for those trying to build.
One city has been at the forefront of these conversations: Minneapolis.
That's because Minneapolis was ahead of the pack as it made a series of changes to its zoning rules in recent years: allowing more density downtown and along transit corridors, getting rid of parking requirements, permitting construction of accessory dwelling units (ADUs), which are secondary dwellings on the same lot.
And one change in particular made national news: The city ended single-family zoning, allowing two- and three-unit homes to be built in every neighborhood.
Researchers at The Pew Charitable Trusts examined the effects of the changes between 2017 and 2022, as many of the city's most significant zoning reforms came into effect.
They found what they call a "blueprint for housing affordability."
Eliminating single-family zoning was part of a broader package of reforms deliberated by Alexandria’s city council known as the Zoning for Housing/Housing for All initiative. While most council members welcomed the reforms, lawns across the city have been littered with “anti-zoning” signs for months in anticipation of the vote. Some residents assumed that by eliminating the codes that restrict what can be built how and where, the city would lose its charm.
Others point out, however, that the pride of the city, Old Town, would not be able to exist within the restrictive zoning that has defined Alexandria for the last half-century. Originally laid out in 1749, Old Town follows a grid pattern and is beloved for its multi-story brick buildings housing a mixture of commercial uses as well as medium-, low-, and high-density residential opportunities. By contrast, the majority of Alexandria is zoned exclusively for low-density, single-family residential housing. In fact, it’d be illegal to replicate Old Town in most of Alexandria under the current zoning regime.