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Despite a lull in housing demand driven by interest rates, the underlying crisis has only deepened, which is why voters and candidates need to put housing first on their issues lists.

By way of background, high interest rates over the last two years have masked structural issues at the heart of the housing crisis by dampening sales.

And while low sales may have temporarily increased inventory, construction cost inflation (well in excess of the Consumer Price Index) and escalating fees have fuelled a cost-to-build crisis making it nearly impossible to build homes for a price the market is willing to absorb.

Predictably, new projects are not coming to market, with housing starts declining and the future supply needed to meet demand in jeopardy.

Why does this matter?

The GTA is a region where housing supply has traditionally failed to keep pace with need and continues to underperform which manifests itself in a variety of ways.

First, a growing number of GTA residents are living in what the Canada Mortgage and Housing Corporation (CMHC) defines as unsuitable housing — homes that are too small, lack sufficient bedrooms for large families, or are otherwise inadequate to meet the needs of the size of their household. This happens due to affordability, lack of supply, and lack of choice.

Second, efforts to address the long-term affordability of housing will be undermined. Already, many residents are spending more than 30 per cent of their household income on housing, a proportion that will continue to rise.

Third, it will serve to perpetuate the inequity that is home ownership in the GTA, with many young Canadians and new immigrants locked out of the market altogether.

Finally, we will continue to see an exodus of young families from the GTA to more affordable regions of the province and Canada. This will lead to a greying of the GTA population and will have significant social and economic consequences.

The GTA is the economic engine of Canada. To allow the housing crisis to be perpetuated threatens the social and economic well being of this engine. So, what can be done?

Upcoming candidates and voters alike must support immediate action on several fronts:

• Create a new deal for funding growth: Government fees and taxes account for 25 per cent of the cost of a new home in the GTA, and municipal development charges are among the highest in North America, adding tens of thousands of dollars to a purchase price. Governments must create a fair system for paying for growth that does not unfairly burden new home buyers.

• Eliminate HST on new homes: Currently, HST is applied to new home purchases, which also tacks on additional thousands of dollars to the price of a new home. Eliminating this tax would provide much-needed relief for buyers and help lower housing costs.

• Increase serviced land supply: The cost of land in the GTA has risen exponentially over the past 20 years due to a shortage of serviced land for new housing. Governments must prioritize increasing the supply of serviced land to support construction of future housing projects.

• Expedite approvals: Delays in municipal approvals for new homes in the GTA hinder housing supply growth, limit choice, and drive up costs for homebuyers. Governments must cut the red tape and work with municipalities to make approvals quicker.

Housing will be a defining issue for governments in the months ahead.

The failure to tackle the housing crisis head-on will not only threaten the region’s economic stability but also undermine the very social fabric that has long defined the GTA.

Inaction will have far-reaching consequences, jeopardizing the future prosperity and cohesion of not just the region, but all of Canada.