
The technical problems are likely the most solvable ones, except for the skilled trades shortage. That problem is very difficult to solve because most people don’t want to do the work and the people who don’t have any other options tend to have personal / mental health problems that make them very unreliable as workers.
I have several friends who work in the skilled trades (drywall taping and finishing). It’s extremely tiring work that leads to chronic joint pain later in life. You’re also exposed to large amounts of dust so you’re wearing a lot of PPE which is quite sweaty and uncomfortable. Many of the other people they encounter in the trade have severe problems with alcoholism, drug addiction, and are very unreliable as workers.
You might suggest that these trades should pay more in order to attract higher quality workers but that means the cost of building housing goes up even more! Ultimately, the problem for skilled trades is the Baumol effect. The labour productivity of construction work has not risen to match the productivity of other industries (notably the tech industry). This problem has affected many industries in our society. It’s the hidden cost we all pay for the convenience of technology.
The political problem is even more difficult to solve. The issue there is that the middle class has grown rich on the back of their home. The rise in real estate value for people’s single family houses has been the main contributor to the wealth of the middle class. Building on this, the two main political parties in Canada (Liberals and Conservatives) target the middle class as their voting base. Thus they are both extremely reluctant to do anything that would lower the demand for housing which would cause real estate prices to fall, destroying the wealth of their voting base.
Milton Friedman has called this problem “middle class welfare.” Political parties target the middle income 51% of the population with social programs and policies that benefit them, not the bottom 51% as we might expect. The most obvious of these programs is government-supported higher education (which benefits the middle class at the expense of the working class), but that’s another discussion entirely.
I believe that the Liberal government’s pursuit of aggressive immigration policies was done deliberately to increase demand for housing (making the middle class rich) and to provide more working class taxpayers to support the education of the middle class.
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