The conversation around energy efficiency in housing is evolving. Once not even on the radar for most Canadians, homeowners and renters are now expecting a certain level of energy efficiency in new homes. That expectation is based on reality — homes constructed today are much more efficient than those built even 20 years ago, thanks in large part due to innovation within the industry and past government-industry partnerships that put Canadians among some of the best-housed people in the world. But as we strive towards reducing our collective greenhouse gas (GHG) emissions, it’s important that we don’t also further erode housing affordability for the next generation. Smart housing-related policy and government investment in targeted energy-efficiency measures that promote affordability are fundamental to further improving our homes.
Energy efficiency through the lens of affordability
As increased energy efficiency in housing gains momentum, it’s important to view ideas that are on the table through the lens of a home’s affordability. Today’s homes are already very energy efficient, and reaching higher levels of efficiency requires additional skills, experience, and hard costs. If requirements are put in place without sufficiently assessing the costs they add to construction (and even potentially to operation — for cooling, for example), we risk further eroding affordability. The trick is finding innovative solutions to lower construction costs to bring mortgage payments down.
There are many professionals in all areas of the residential construction industry who are passionate about innovating with the goal of improving a home’s energy efficiency without adding costs. Members of the Canadian Home Builders’ Association (CHBA) Net Zero Energy Housing Council include builders, renovators, energy advisors, utilities, manufacturers, and others who are working towards that common goal, and sharing what they learn along the way. Equally important is the work that CHBA does to assess and provide industry input on the real-world impact that hundreds of minor and major proposed code changes would have. This meaningful work, plus the collaboration and voluntary drive among the leaders in the industry, is helping propel advancements in housing science. But with added support from governments, widespread adoption of improved efficiency measures can happen much faster voluntarily, especially if there is innovation to find more affordable solutions.
“Smart housing-related policy and government investment in targeted energy-efficiency measures that promote affordability are fundamental to further improving our homes.”
The government role
The federal government has policy levers to address climate change and improve affordability in tandem — and it will take smart policy to achieve this. In the recent federal election, market-rate housing affordability was passionately discussed among voters and political candidates alike, and resulted in many housing measures included in the major party platforms. In its platform, the newly re-elected Liberal Party proposed the creation of a Low-Carbon Building Materials Innovation Hub to work directly with entrepreneurs, municipalities, provinces and territories, and Indigenous governments to ensure Canadian innovations are best positioned to succeed. Similarly, the Conservatives included in their platform a plan for developing initiatives to pilot new technologies and solutions that will lower the cost and speed up the pace of housing energy retrofits. Investing in research and development and taking a leadership role in bringing groups together to innovate is a positive step; ensuring housing affordability is one of the required outcomes is also necessary.
Before regulating excessively high levels of energy performance across the country, the government should focus on innovation to bring down costs and scale up voluntary use first, so as to improve affordability for consumers, not make it worse.
Investment in energy-efficient homes is not only about new home construction. Canada has 14 million dwellings, and approximately 43% of the current housing stock was built before 1983. The majority of these older buildings are far behind new homes when it comes to energy efficiency. Focusing on new construction alone will not allow Canada to reach its GHG reduction targets for housing. Even if all the new homes built from now until 2030 were built to zero emissions, we still wouldn’t hit our target.
Renovating existing homes must be part of the solution, and governments at all levels need to find ways to help more homeowners get the assistance they need to make energy-efficiency improvements to their homes. The federal commitment of $2.6 billion to provide grants for energy-efficient improvements, free EnerGuide energy assessments, and support to recruit and train EnerGuide energy advisors will incent homeowners to begin that necessary work.
“Renovating existing homes must be part of the solution, and governments at all levels need to find ways to help more homeowners get the assistance they need to make energy-efficiency improvements to their homes.”
The industry needs more trained professionals to keep up with growing demand, including builders, renovators, and skilled tradespeople. Training is a key component in CHBA’s Net Zero Home Labelling Program, which ensures that each participating home is qualified by a third party to meet the specified technical requirements. But we need more trained professionals in the industry. According to BuildForce Canada, the residential construction industry will need to attract and train an estimated 148,000 workers over the coming decade to backfill retirements and meet rising demand for new home construction and renovation. The federal government has a role in expanding opportunities to promote skilled trades for young people and improve the immigration system to better respond to labour shortages through permanent solutions.
Looking forward
Improving the quality and energy efficiency of homes is a laudable goal, but given the housing affordability crisis, this needs to be done in tandem with a true goal of affordability. The residential construction industry is voluntarily innovating to get us there. But before Canada can consider widespread regulation, we need more investment in targeted energy-efficiency measures that promote affordability. With smart housing-related policy that includes affordability as a goal, and governments at all levels working together with industry and citizens, we can reach our targets. But if affordability is not prioritized, we will be left wondering why we didn’t reach our goals with respect to climate change (and why affordability has gotten worse, not better).