What’s The Plan Stan?

As we all know by now, the government of Canada promised to build millions and millions of homes in the 2024 budget. Millions and millions and millions of homes they say. Of course, it was a politicians promise, so let’s see if it actually happens. They didn’t provide us with any details, or particulars, or estimates, or plan – no no, just a headline number. Of course, if they actually showed you a plan, you might start to question just how exactly the government is going to get 1 home a minute build for every minute of the next almost 7 years. You might start to question how they will procure the material, you may ask where they will find the qualified trades to build said housing, or where said housing will actually be located, or if they can even get municipal government planning departments to move that fast. But, if we just throw out a big flashy number – maybe no one will question it.

Of course we are seeing these types of government programs elsewhere – namely in the EV space. Billions and billions and billions of dollars being thrown at the EV industry – specifically in Ontario to build plants that most likely will be obsolete by the time they are complete. Of course the numbers and announcements are always big and flashy, and have promises of jobs, wealth, and a middle class living for everyone. But, much like the housing announcement, these plans are short on details. The reason I mention EV’s is that it seems to be a real divider in Canada -and around the world. Somehow an EV can divide people quicker than a political rally. I am in a position where I own 2 EV’s, and will admit they are good, but I certainly wouldn’t give up my ICE car – at least not yet. Canada is a tough climate for an EV, and yet – the EV agenda is forced upon Canadians with more vim and vigour than any government plan I have seen.

Every report we see from auto manufacturers suggests that they lose money on every EV sold. Every manufacturer seems to be pushing back production in North America – the most recent victim of this was Ford Oakville where the layoff notices went out to thousands of workers. It looks like it will be at least 2.5 years before Ford produces EV’s in Oakville. And yet – the government keeps pushing the EV plan forward. Even without a robust charging network in place – the government pushes the EV agenda forward. Even though most existing homes in Canada cannot charge an EV vehicle at their residence – the plan forges ahead.

The Canadian government has made it clear beyond any reasonable doubt that they plan to push EV’s – whether or not Canadians want them, will pay for them, or can afford them.

Why do I care about the governments EV plan? Well, quite honestly I don’t!! I really could care less what the Canadian government wants to push as an agenda. However, it does lead me to wonder: Will the Canadian government housing plan end up looking a lot like the Canadian government EV plan? Will the government build millions and millions of homes that people don’t want, can’t afford, and won’t live in? Will these magical mystical homes actually work for the average Canadian? EV’s certainly do not work for the majority of Canadians – and yet the plan gets pushed. Why would we expect a tone deaf government in one area to be magically smart in another area? The only way I think that the government can even hope to accomplish their goal, is to build shitty housing, small shoebox condos of 400 square feet, and, for lack of a better term – mobile homes or pre fab construction. These are not the type of homes that the average Canadian wants.

Any time a politician gets involved in a deal, you can be sure that it will cost twice as much as it should, the grift will be about 25% of the cost, and some well connected people will make out like bandits. And please don’t confuse this with a Liberal bashing comment – oh no, I think all politicians are useless. Anytime someone is a politician, I automatically deduct 40 IQ points from them. I don’t care what party flag you fly, the fact you are in politics is because you failed at everything else.

The housing plan is an ambitious plan that has been labelled as ‘ Team Canada’ which honestly is the dumbest thing they could have done. Team Canada is something that we would expect to see winning a gold medal in OT of a hockey game, or rowing excellence on a lake of glass. Please don’t disrespect the athletes who work their ass off to accomplish something. Team Canada is about winning. Well, at least it was, until the government decided to take the name over for what I anticipate will be a failed housing policy.

Economics also has a piece to play in this. Why the hell would anyone buy a home if the supply is about to explode? Why buy a house now, where supposedly there is 4 million homes coming in 7 years? Supply and demand says that the huge supply coming to market should drive down the price of existing homes. I am not sure how the average person hasn’t figured this out yet – maybe they were too distracted with the capital gains tax changes to think about the laws of supply and demand on their current owner occupied house.

Can we build 4 million homes in 7 years? Maybe – although I doubt it, but I think the bigger question to ask is, based on the history of who is pushing the plan – will it even be homes we want?