The Federation of Canadian Municipalities (FCM), representing over 2000 municipalities, asserts that an estimated $600 billion is required for municipalities to meet housing affordability targets by 2030. The Canada Mortgage and Housing Corporation (CMHC) identifies a need for 5.8 million new homes by 2030 to restore housing affordability.

While the federal government’s fall economic statement, released this week, fell short of including a promised new infrastructure funding model, the FCM expressed disappointment. In an Ottawa news conference, the FCM urged the federal government to engage in discussions with provincial, territorial, and municipal leaders to establish a funding framework that considers economic and population growth.

Mike Savage, chair of the Big City Mayors’ Caucus, emphasized that municipalities face unique fiscal pressures and require increased support for essential infrastructure, including roads, public transport, drinking water systems, and housing construction. Savage acknowledged that an immediate $600 billion may not be feasible but urged the government to recognize the threat posed to Canada’s growth and explore viable solutions.

In response to concerns, the Liberal government’s fiscal update acknowledged fiscal pressures due to high inflation and interest rates. While the update highlighted significant new investments in housing, it did not address the absence of a new infrastructure funding model for municipalities, leaving local leaders and advocates calling for meaningful collaboration and action.