A recent study by UBC’s Housing Assessment Research Tools (HART) team has shed light on the untapped potential of underused public land in Canadian cities to address the nation’s housing crisis. According to the analysis:
• Toronto Region: Vacant or underutilized public land could provide affordable housing for over 587,000 people.
• Ottawa: The city has the capacity to house about 200,000 people on public land near schools, parks, and transit.
• Calgary: Enough land exists to house nearly 89,000 residents, excluding provincially owned properties.
In total, public land in Toronto and five other cities could potentially house one million Canadians if developed strategically. This would help address the 3.5 million homes needed by 2030, as estimated by the Canada Mortgage and Housing Corporation (CMHC), to restore affordability across the country.
Challenges to Realizing This Potential
While the numbers are promising, the path to transforming public land into viable housing is fraught with challenges:
Servicing Capacity: Infrastructure improvements, such as sewers, utilities, and transportation networks, are essential to make many of these sites suitable for housing.
Capital and Equity Constraints: Development requires significant funding. Without capital and equity from private or public partnerships, progress will stall.
Developer Feasibility: Structuring deals that balance affordability for tenants with feasibility for developers remains a key concern.
Process Complexity: Non-profit developers face hurdles such as high competition, complex approval processes, and limited access to funding.
Aging Infrastructure: Municipalities often cite outdated infrastructure as a roadblock to redevelopment.
The Role of Private Equity in Addressing Housing Needs
Private equity can play a crucial role in overcoming these challenges:
Providing Capital: By partnering with public entities, private equity can supply the funds needed to develop large-scale affordable housing projects.
Accelerating Development: Strategic private equity investment enables faster implementation of housing projects on public land.
Risk Sharing: Private equity partnerships help share the financial and operational risks of such ambitious undertakings.
Goodland Equity Partners’ Perspective
At Goodland Equity Partners, we recognize the transformative potential of underused public land. By leveraging private equity, we can help bridge the gap between government objectives and private sector expertise, delivering developments that are both socially impactful and financially sustainable. Projects like these are not just about building homes—they’re about creating communities, solving systemic issues, and generating long-term value for investors and society alike.
Interested in how private equity can contribute to solving Canada’s housing crisis? Let’s talk.
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