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UBC Theses and Dissertations

Urban land policy and the provision of housing in Canada, 1900-1985 Gordon, Michael Lynn Harvey 1985

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URBAN LAND POLICY AND THE PROVISION OF HOUSING IN CANADA, 1900-1985 By MICHAEL LYNN HARVEY GORDON B.E.S., The U n i v e r s i t y of W a t e r l o o , 1976 A THESIS SUBMITTED IN PARTIAL FULFILLMENT OF THRE REQUIREMENTS FOR THE DEGREE OF MASTERS OF SCIENCE i n THE FACULTY OF GRADUATE STUDIES The S c h o o l o f Community and R e g i o n a l P l a n n i n g We a c c e p t t h i s t h e s i s a s c o n f o r m i n g t o t h e r e q u i r e d s t a n d a r d THE UNIVERSITY OF B R I T I S H COLUMBIA A p r i l 1985 © M i c h a e l Ly n n H a r v e y G o r d o n , 1985 I n p r e s e n t i n g t h i s t h e s i s i n p a r t i a l f u l f i l m e n t o f t h e r e q u i r e m e n t s f o r an a d v a n c e d d e g r e e a t t h e U n i v e r s i t y o f B r i t i s h C o l u m b i a , I a g r e e t h a t t h e L i b r a r y s h a l l make i t f r e e l y a v a i l a b l e f o r r e f e r e n c e a n d s t u d y . I f u r t h e r a g r e e t h a t p e r m i s s i o n f o r e x t e n s i v e c o p y i n g o f t h i s t h e s i s f o r s c h o l a r l y p u r p o s e s may be g r a n t e d by t h e h e a d o f my d e p a r t m e n t o r by h i s o r h e r r e p r e s e n t a t i v e s . I t i s u n d e r s t o o d t h a t c o p y i n g o r p u b l i c a t i o n o f t h i s t h e s i s f o r f i n a n c i a l g a i n s h a l l n o t be a l l o w e d w i t h o u t my w r i t t e n p e r m i s s i o n . D e p a r t m e n t o f Coirniunity and Regional Planning The U n i v e r s i t y o f B r i t i s h C o l u m b i a 1956 Main Ma l l V a n c o u v e r , Canada V6T 1Y3 D a t e JLftA DE-6 C3/81) ABSTRACT T h i s t h e s i s i n v e s t i g a t e s one o f t h e major f a c t o r s i n the s u p p l y and c o s t of h o u s i n g , l a n d . The h y p o t h e s i s of t h i s t h e s i s i s t h a t a p r i n c i p a l r e a s o n why Canada c o n t i n u e s t o have a h o u s i n g p r o b l e m i s t h a t governnment h o u s i n g p o l i c y has t r e a t e d l a n d as a market commodity much l i k e any o t h e r and has r a r e l y examined, l e t a l o n e c h a l l e n g e d , t h e r a m i f i c a t i o n s of t h i s a s s u m p t i o n i n terms of i t s impact on th e s u p p l y , q u a l i t y and p r i c e of h o u s i n g . The e x a m i n a t i o n of t h e l a n d component of urb a n h o u s i n g i s . p u r s u e d by e x p l o r i n g t h e f o l l o w i n g r e s e a r c h q u e s t i o n s : How have C a n a d i a n government o f f i c i a l s , p o l i t i c i a n s and r e f o r m e r s d e f i n e d t h e u r b a n l a n d p r o b l e m as i t r e l a t e s t o h o u s i n g and what l a n d p o l i c i e s have been c o n s i d e r e d and implemented i n r e l a t i o n t o h o u s i n g p r o b l e m s ? The p u b l i c , p r o f e s s i o n a l and a c a d e m i c d i s c u s s i o n o f t h e s e q u e s t i o n s i s p u r s u e d by a r e v i e w o f t h e p r o f e s s i o n a l and a c a d e m i c l i t e r a t u r e , m u n i c i p a l p l a n s , t e c h n i c a l r e p o r t s and government s t u d i e s and t h e d e b a t e s on h o u s i n g and u r b a n l a n d p o l i c y i n t h e f e d e r a l p a r l i a m e n t . The t h e s i s i s d i v i d e d i n t o two p a r t s . F i r s t , t h e p h i l o s o p h y o f p r i v a t e l a n d o w n e r s h i p and t h e b a s i c t h r u s t of p u b l i c l a n d p o l i c y i s e x a m i n e d . Most a t t e n t i o n i s g i v e n t o th e n a t u r e o f p r o p e r t y r i g h t s and t h e i r p r o t e c t i o n and e n f o r c e m e n t by government as i t i s t h e most f u n d a m e n t a l l a n d ' i i p o l i c y . A l s o , t h e n a t u r e o f u r b a n i z a t i o n and t h e i n t e r v e n t i o n of government i n u r b a n d e v e l o p m e n t and h o u s i n g s i n c e 1900 i s r e v i e w e d . Second, an h i s t o r i c a l o v e r v i e w of l a n d p o l i c y and t h e p r o v i s i o n of h o u s i n g i s p r o v i d e d . T h i s d i s c u s s i o n i s d i v i d e d i n t o f o u r h i s t o r i c a l p e r i o d s : 1900-1929, 1930-1939, 1940-1969, 1970-1985. The c o n s t r a i n t s on and o p p o r t u n i t i e s f o r u r b a n l a n d p o l i c y a r e examined and t h e n a t u r e of l a n d p o l i c y i n e a c h p e r i o d i s d i s c u s s e d . T h e r e have been, i n g e n e r a l , f i v e c a t e g o r i e s of l a n d p o l i c i e s a d o p t e d s i n c e 1900: l a n d use z o n i n g , s u b d i v i s i o n r e g u l a t i o n , p u b l i c i n f r a s t r u c t u r e and s e r v i c i n g programmes, p u b l i c l a n d a s s e m b l y programmes and u n e a r n e d i n c r e m e n t t a x e s . These p o l i c i e s have e m p h a s i z e d t h e t r e a t m e n t of l a n d as a p r i v a t e l y h e l d market commodity. T h e r e i s a c o n f l i c t between t h e d e s i r e s o f p r i v a t e l a n d owners t o maximize t h e r e t u r n on t h e i r l a n d and t h e need of t h e b r o a d e r community t o o b t a i n l a n d f o r h o u s i n g a t p r i c e s w h i c h make a f f o r d a b l e and p h y s i c a l l y a d e q u a t e h o u s i n g f e a s i b l e . T h i s c o n f l i c t i s a t t h e c r u x of t h e u r b a n l a n d p r o b l e m . _ i i i TABLE OF CONTENTS ABSTRACT INTRODUCTION 1 CHAPTER ONE - The I n s t i t u t i o n o f P r i v a t e P r o p e r t y and Government R e s p o n s e s t o U r b a n i z a t i o n . . . 5 1.1 Land as p r i v a t e p r o p e r t y 5 1.2 Urban l a n d and u r b a n l a n d p o l i c y . . . 9 1.3 Governments and t h e p r o d u c t i o n of h o u s i n g 13 1 .4 Summary 15 CHAPTER TWO - Urban L a n d P r o b l e m s : 1900-1929 17 2.1 The emergence of a Town P l a n n i n g and H o u s i n g Movement i n Canada . . . 18 2.2 Land S p e c u l a t i o n and t h e e a r l y Town P l a n n e r s 25 2.3 P r o p o s a l s f o r government a c t i o n on u r b a n l a n d p o l i c y 27 2.4 The 1919 f e d e r a l h o u s i n g programme an d t h e l a n d p r o b l e m . . . . 32 2.5 The 1920's: C i t y P l a n n e r s and H o u s i n g 35 2.6 H o u s i n g p r o b l e m s and the t e c h n c i a l f i x 37 2.7 C o n c l u s i o n 41 CHAPTER THREE - What Land P r o b l e m ? The D e p r e s s i o n Y e a r s : 1930-1939 . . . . 43 3.1 The 1935 S p e c i a l Committee on H o u s i n g and t h e D o m i o n i o n H o u s i n g A c t . . . . 47 3.2 The 1938 N a t i o n a l H o u s i n g A c t and t h e G r a u e r R e p o r t 51 3.3 The S o c i a l D e m o c r a t s and t h e Urban Land P r o b l e m 54 3.4 C o n c l u s i o n 56 CHAPTER FOUR - P o s t - w a r Government H o u s i n g Programmes Programmes t h e r e t u r n o f t h e Land P r o b l e m : 1941-1969 58 4.1 The C u r t i s Sub-commitee on H o u s i n g and Community P l a n n i n g : 1942-1944 . . 64 i v 4.2 P o s t - w a r p l a n n e r s a n d h o u s i n g p r o b l e m s . 68 4.3 The S h o r t a g e o f S e r v i c e L a n d 72 4.4 The l a t e 1950's a n d t h e 1960 ' s : The L a n d D e b a t e R e v i s i t e d 78 4.5 The f e d e r a l g o v e r n m e n t i n c r e a s e s a i d t o low income f a m i l i e s 84 4.6 The 1969 F e d e r a l T a s k F o r c e on H o u s i n g a n d U r b a n D e v e l o p m e n t 87 4.7 C o n c l u s i o n CHAPTER F I V E - The 1970's L a n d Boom a n d t h e L a n d P r o b l e m 91 5.1 P o l i t i c i a n s and t h e U r b a n L a n d P r o b l e m 92 5.2 C r i t i c s o f t h e u r b a n l a n d m a r k e t . . . . 98 5.3 The L a n d M a r k e t D e f e n d e d 106 5.-4 Gove r n m e n t r e s p o n s e s t o t h e U r b a n l a n d p r o b l e m 111 5.6 The 1 9 8 0 ' s : t h e end o f U r b a n L a n d P r o b l e m s ? 116 5.7 C o n c l u s i o n 121 CHAPTER S I X - C o n c l u s i o n 123 BIBLIOGRAPHY 129 APPENDIX A - H o u s i n g S t a r t s by Type and L o c a t i o n , C a n a d a , 1900-1983 138 APPENDIX B - D w e l l i n g U n i t s C o m p l e t e d , C a n a d a , 1900-1983 141 v L I S T OF TABLES T a b l e I T a b l e II T a b l e I I I T a b l e IV T a b l e V T a b l e VI • P o p u l a t i o n and l a n d v a l u e i n c r e a s e s i n C a n a d i a n u r b a n c e n t r e s , 1911-1915 I n d e x e s o f R e s i d e n t i a l l a n d c o s t s , C o n s t r u c t i o n c o s t s , F a m i l y Incomes and consumer p r i c e s , 1949-1969 . . , Land c o s t s a s a p r o p o r t i o n of t h e t o t a l c o s t of s i n g l e f a m i l y homes f i n a n c e d under t h e N.H.A., 1949-1969 L o t s d e v e l o p e d under t h e N.H.A. f e d e r a l - p r o v i n c i a l L a n d Assembly p r o j e c t s , 1950-1969 I n d e x e s of Land c o s t s , C o n s t r u c t i o n c o s t s and Consumer P r i c e s , 1970-1983 2 1 61 62 77 94 C o m p a r i s o n of a v e r a g e a n n u a l c h a n g e s i n Land c o s t s , i n f l a t i o n and H o u s i n g s t a r t s . . . . 126 v i L I S T OF FIGURES F i g u r e 1 D w e l l i n g U n i t s C o m p l e t e d , Canada, 1900-1929 . 20 F i g u r e 2 D w e l l i n g U n i t s C o m p l e t e d , Canada, 1930-1939 . 47 F i g u r e 3 D w e l l i n g U n i t s C o m p l e t e d , Canada, 1940-1969 . 60 F i g u r e 4 D w e l l i n g U n i t s C o m p l e t e d , Canada, 1970-1983 . 95 v i i ACKNOWLEDGEMENTS I want t o e x t e n d my g r a t i t u d e t o Dr. J . D. H u l c h a n s k i who has u n f a i l i n g e n c o u r a g e d me t o do my b e s t work. My t h a n k s i s owed t o Brahm Weisman who o f f e r e d good d i r e c t i o n f o r t h e r e v i s i o n of my d r a f t s and i n i t i a l l y e n c o u r a g e d me t o come t o UBC f o r m a s t e r s s t u d i e s . A l s o , my t h a n k s i s e x t e n d e d t o Dr. T r e v o r B a r n e s who was v e r y h e l p f u l i n s o r t i n g out t h e f i n a l c o n c l u s i o n s and t h e p h i l o s o p h i c a l b a s i s of t h i s t h e s i s . F i n a l l y , I would l i k e t o e x t e n d my g r a t i t u d e t o t h e Canada M o r t g a g e and H o u s i n g C o r p o r a t i o n f o r s u p p o r t i n g me t h i s y e a r t h r o u g h t h e i r s c h o l a r s h i p programme. v i i i 1 INTRODUCTION O b t a i n i n g a d e q u a t e and a f f o r d a b l e h o u s i n g c o n t i n u e s t o be a p r o b l e m f o r many C a n a d i a n h o u s e h o l d s . D e s p i t e government i n v o l v e m e n t i n the p l a n n i n g and p r o v i s i o n o f h o u s i n g and s u b s t a n t i a l p u b l i c e x p e n d i t u r e on h o u s i n g s u b s i d i e s , we c o n t i n u e t o have h o u s i n g p r o b l e m s . A r e c e n t f e d e r a l government c o n s u l t a t i o n p a p e r on h o u s i n g , w h i l e n o t i n g t h a t C a n a d i a n h o u s e h o l d s were among t h e b e s t h o u s e d i n t h e w o r l d , a r g u e s t h a t : t h e r e a r e a number of m a j o r p r o b l e m s t h a t need t o be a d d r e s s e d . More t h a n 500,000 r e n t a l h o u s e h o l d s c a n n o t a f f o r d p h y s i c a l l y a d e q u a t e and uncrowded h o u s i n g , and n e a r l y 200,000 homeowners have s e r i o u s a f f o r d a b i 1 i t y p r o b l e m s . ( C a n a d a , 1985, p. 10) T h i s t h e s i s i n v e s t i g a t e s t h e e x i s t e n c e of h o u s i n g p r o b l e m s by e x a m i n i n g one of t h e m a j o r f a c t o r s i n t h e s u p p l y and c o s t o f h o u s i n g , l a n d . The h y p o t h e s i s of t h i s t h e s i s i s t h a t a p r i n c i p a l r e a s o n why Canada c o n t i n u e s t o have a h o u s i n g p r o b l e m i s b e c a u s e government h o u s i n g p o l i c y has t r e a t e d l a n d as a commodity much l i k e any o t h e r and has r a r e l y examined, l e t a l o n e c h a l l e n g e d , t h e r a m i f i c a t i o n s o f t h i s a s s u m p t i o n i n t e r m s of i t s i m p a c t on t h e s u p p l y and p r i c e o f h o u s i n g . T h i s p a p e r ' s e x a m i n a t i o n of t h e l a n d component o f u r b a n 2 h o u s i n g i s p u r s u e d by e x p l o r i n g t h e f o l l o w i n g r e s e a r c h q u e s t i o n s : 1) How have C a n a d i a n government o f f i c i a l s , p o l i t i c i a n s and r e f o r m e r s d e f i n e d t h e u r b a n l a n d p r o b l e m as i t r e l a t e s t o h o u s i n g ? 2) What l a n d p o l i c i e s have been c o n s i d e r e d and i m p l e m e n t e d i n r e l a t i o n t o h o u s i n g p r o b l e m s ? T h i s t h e s i s t a k e s a h i s t o r i c a l a p p r o a c h t o t h e t o p i c of u r b a n l a n d p o l i c y as i t r e l a t e s t o h o u s i n g . To g i v e an o v e r v i e w of t h e d i s c u s s i o n on t h i s t o p i c t h e v i e w s of u r b a n a n a l y s t s , p l a n n e r s , p o l i t i c i a n s , government o f f i c i a l s and r e s e a r c h e r s have been drawn from a v a r i e t y of s o u r c e s . The v i e w s of p r o f e s s i o n a l s and o t h e r u r b a n a n a l y s t s were drawn from t h e i s s u e s of t h e C o n s e r v a t i o n of L i f e , t h e C a n a d i a n M u n i c i p a l J o u r n a l , The C a n a d i a n E n g i n e e r , t h e J o u r n a l , Town P l a n n i n g I n s t i t u t e of Canada, L a y o u t f o r L i v i n g , P l a n Canada, t h e J o u r n a l o f t h e R o y a l A r c h i t e c t u r a l I n s t i t u t e of Canada, H a b i t a t , C i t y M a g a z i n e and t h e Community P l a n n i n g Review. R e s e a r c h monographs, books and m u n i c i p a l t e c h n i c a l r e p o r t s on h o u s i n g and c i t y p l a n s were a l s o c o n s u l t e d . The w i d e r p u b l i c d e b a t e on l a n d p o l i c y as i t r e l a t e s t o h o u s i n g i s r e f l e c t e d by t h e d e b a t e s of t h e f e d e r a l P a r l i a m e n t . E a c h of t h e major h o u s i n g d e b a t e s i n 1919, 1935, 1938, 1944, 1954, 1964, 1973 and 1981-82 were examined t o i d e n t i f y t h e n a t u r e of t h e d i s c u s s i o n o f h o u s i n g p r o b l e m s and p o l i c y . A l s o , major government h o u s i n g s u t u d i e s s u c h as t h e 1935 S p e c i a l Committee on H o u s i n g , t h e 1944 s u b - c o m m i t t e e r e p o r t on H o u s i n g and Community P l a n n i n g , t h e 1969 Task F o r c e on H o u s i n g and Urban D e v e l o p m e n t , t h e 1972 Programmes w i t h o u t a 3 P o l i c y r e p o r t and t h e 1978 F e d e r a l - P r o v i n c i a l T a s k F o r c e on t h e S u p p l y and P r i c e of L a n d a r e among t h e many government r e p o r t s c o n s u l t e d . Review of t h e s e s o u r c e s p r o v i d e d t h e r e s e a r c h e r w i t h an o v e r v i e w of what was d i s c u s s e d and p r o p o s e d b o t h i n s i d e and o u t s i d e government c i r c l e s and what was a c t u a l l y i m p l e m e n t e d . The o p p o r t u n i t i e s and and c o n s t r a i n t s on government a c t i o n i n t h e a r e a of l a n d p o l i c y a r e i d e n t i f i e d b a s e d on t h i s l i t e r a t u r e . The f i r s t c h a p t e r s e t s t h e s t a g e f o r t h e h i s t o r i c a l d i s c u s s i o n of government l a n d p o l i c y a s i t r e l a t e s t o h o u s i n g by e x a m i n i n g t h e b a s i c t h r u s t of p u b l i c l a n d p o l i c y -t h e a d m i n i s t r a t i o n and p r o t e c t i o n of p r i v a t e p r o p e r t y r i g h t s . T h i s c h a p t e r b r o a d l y t r a c e s t h e e v o l u t i o n of urban l a n d and h o u s i n g p o l i c i e s w i t h i n t h e framework o f p r i v a t e p r o p e r t y r i g h t s and t h e u r b a n l a n d m a r k e t . The n e x t f o u r c h a p t e r s f o l l o w s t h e d i s c u s s i o n of urb a n l a n d and h o u s i n g . E a c h of t h e f o l l o w i n g f o u r c h a p t e r s d e a l s w i t h a p a r t i c u l a r h i s t o r i c a l p e r i o d . C h a p t e r two l o o k s a t t h e d e f i n i t i o n of u r b a n l a n d p r o b l e m s by t h e g r o w i n g u r b a n p l a n n i n g p r o f e s s i o n f r o m 1900 u n t i l 1929. I t a l s o examines t h e government p o l i c i e s w h i c h were a d v o c a t e d and t h e p o l i c i e s w h i c h were i m p l e m e n t e d i n an e f f o r t t o cope w i t h t h e p e r i o d ' s h o u s i n g p r o b l e m s . C h a p t e r t h r e e d i s c u s s e s t h e emergence o f an on-g o i n g f e d e r a l r o l e i n t h e h o u s i n g s e c t o r and how t h e t h e l a n d p o l i c y d i s a p p e a r e d f r o m t h e d e b a t e d u r i n g t h e d e p r e s s i o n y e a r s . The y e a r s 1940 t o 1969 a r e examined i n c h a p t e r f o u r a s a p e r i o d where t h e scope o f government 4 i n v o l v e m e n t i n t h e p r o v i s i o n o f h o u s i n g i n c r e a s e d s i g n i f i c a n t l y t o t h e p o i n t t h a t g o v e r n m e n t s were among t h e most i m p o r t a n t a c t o r s i n t h e p r o d u c t i o n o f h o u s i n g . The most r e c e n t p e r i o d , 1970 t o 1985, i s c o v e r e d i n c h a p t e r f i v e where t h e f o c u s i s on t h e 1970's r a p i d i n c r e a s e i n l a n d a nd h o u s i n g p r i c e s . D u r i n g t h e 1970's u r b a n l a n d p o l i c y became an i s s u e o f g r e a t c o n c e r n t o b o t h u r b a n a n a l y s t s and t o t h e g e n e r a l p u b l i c . L a s t l y , c h a p t e r s i x o f f e r s c o n c l u d i n g r e m a r k s on how t h e u r b a n l a n d p r o b l e m a s i t r e l a t e s t o h o u s i n g h a s been d e f i n e d a nd what a r e t h e p r o s p e c t s f o r f u r t h e r g o v e r n m e n t a c t i o n on u r b a n l a n d p r o b l e m s . 5 CHAPTER ONE THE INSTITUTION OF PRIVATE PROPERTY AND URBAN LAND POLICY 1.1 Land as p r i v a t e p r o p e r t y Any s t u d y o f l a n d must b e g i n w i t h t h e r e c o g n i t i o n t h a t t r e a t m e n t o f l a n d as a commodity when government has a t t e m p t e d t o d e a l w i t h t h e p r o b l e m s of urban d e v e l o p m e n t and t h e l a n d i n Canada i s t r e a t e d as i f i t were a t y p i c a l commodity. P r o v i s i o n of h o u s i n g . I t i s bought and s o l d on t h e r e a l e s t a t e market i n t h e same way as most o t h e r c o m m o d i t i e s a r e bought and s o l d i n t h e i r r e s p e c t i v e m a r k e t s . The r i g h t t o own l a n d i s one o f t h e b a s i c i n s t i t u t i o n s of C a n a d i a n s o c i e t y . I t i s a l s o an i n s t i t u t i o n w h i c h i s r a r e l y q u e s t i o n e d . In Canada, t h e government e n f o r c e s p r i v a t e p r o p e r t y r i g h t s t h r o u g h p r o p e r t y law w h i c h i s b a s e d on t h e B r i t i s h common law t r a d i t i o n . The law o f r e a l p r o p e r t y , a c c o r d i n g t o t h i s t r a d i t i o n , i s b a s e d on two d o c t r i n e s . F i r s t , t h e d o c t r i n e of t e n u r e s t a t e s t h a t a l l l a n d i s h e l d by t h e crown e i t h e r d i r e c t l y or i n d i r e c t l y . Second, t h e d o c t r i n e o f e s t a t e s e s t a b l i s h e s t h a t an i n d i v i d u a l c a n n o t own l a n d , but c a n m e r e l y have an e s t a t e o r an ' i n t e r e s t ' i n i t a u t h o r i z i n g 6 him t o h o l d i t f o r some p e r i o d of t i m e . P r o p e r t y r i g h t s a r e a c t u a l l y a s e t of r i g h t s s a n c t i o n e d by t h e s t a t e w h i c h a r e a t t a c h e d t o t h e p o s s e s s i o n of a t i t l e t o a p a r c e l o f l a n d . The two most i m p o r t a n t a s p e c t s of t h e s e r i g h t s a r e t h e r i g h t t o use l a n d and t h e r i g h t t o e x c h a n g e ( i . e. t o s e l l o r r e n t ) l a n d i n t h e m a r k e t . ( M e g a r r y , 1947, pp. 8, 43) Land, however, u n l i k e most c o m m o d i t i e s p r o d u c e d and ex c h a n g e d i n t h e m a r k e t p l a c e , i s not p r i v a t e l y p r o d u c e d . Land i s a n a t u r a l endowment. I t i s an endowment o v e r w h i c h a s o c i e t y must make r u l e s and r e g u l a t i o n s f o r how i t i s t o be u s e d , e x c h a n g e d and a l l o c a t e d . Thus, Canada, l i k e most c a p i t a l i s t c o u n t r i e s , has i n s t i t u t e d , m a i n t a i n s and e n f o r c e s i n s t i t u t i o n s w h i c h make l a n d a p r i v a t e commodity, t o be u t i l i z e d e x c h a n g e d and a l l o c a t e d on t h e b a s i s of market d y n a m i c s . The t r e a t m e n t of l a n d as a p r i v a t e l y h e l d commodity t h a t i s a l l o c a t e d and u t i l i z e d a c c o r d i n g t o t h e d y n a m i c s of t h e market i s a r e l a t i v e l y r e c e n t i n s t i t u t i o n . Under f e u d a l i s m , l a n d was c o n s i d e r e d t o be under common o w n e r s h i p and t h e r e was no s u c h t h i n g a s t h e l a n d m a r k e t . The t r e a t m e n t of l a n d a s a market commodity a r o s e w i t h t h e a d v e n t of c a p i t a l i s m a s t h e p r e d o m i n a n t mode of p r o d u c t i o n i n w e s t e r n s o c i e t i e s . The t r e a t m e n t o f l a n d as a market commodity c a n be t r a c e d t h r o u g h an e x a m i n a t i o n of t h e p h i l o s o p h i c a l d i s c u s s i o n o f t h e r i g h t s o f p r i v a t e p r o p e r t y . ( M a c p h e r s o n , 1978, pp. 6-8) T h e r e a r e f o u r d i s t i n t i v e a p p r o a c h e s t o t h e d o c t r i n e o f 7 p r i v a t e p r o p e r t y r i g h t s o u t l i n e d i n t h e w r i t i n g s of L o c k e , R o u s s e a u , Marx and Henry G e o r g e . F i r s t , L o c k e was of t h e e a r l i e s t a d v o c a t e s of t h e i d e a t h a t t h e p r i m a r y r o l e o f t h e s t a t e was t h e e n f o r c e m e n t of t h e r i g h t s of p r i v a t e p r o p e r t y . He a r g u e d t h a t t h e r e s h o u l d be no l i m i t t o t h e amount of p r o p e r t y a man c o u l d own. S e cond, R o u s s e a u a r g u e d t h a t an i n d i v i d u a l has a r i g h t t o o n l y t h e l i m i t e d amount of p r o p e r t y t h a n one c o u l d work on by o n e s e l f . He n o t e d t h a t an u n l i m i t e d r i g h t of p r o p e r t y m ight d e p r i v e o t h e r s o f any p r o p e r t y . T h i r d , Marx i d e n t i f i e d p r i v a t e p r o p e r t y as t h e b a s i s of c a p i t a l i s m . He was c o n c e r n e d w i t h t h e s o c i a l r e l a t i o n s i n h e r e n t i n p r i v a t e p r o p e r t y and a r g u e d t h a t o w n e r s h i p of t h e means of p r o d u c t i o n l e a d t o t h e e x p l o i t a t i o n of one c l a s s by a n o t h e r . F o u r t h , Henry George f o c u s e d on one form of p r i v a t e p r o p e r t y , l a n d . He saw t h e p r i v a t e o w n e r s h i p of l a n d as a s i g n i f i c a n t b a r r i e r t o economic d e v e l o p m e n t . Landowners, he a r g u e d , e x p l o i t e d b o t h c a p i t a l i s t s and l a b o u r by e x t r a c t i n g an u n e c e s s a r y payment f o r t h e use of l a n d . D e s p i t e t h e c o n c e r n of Marx t h a t p r i v a t e p r o p e r t y l e a d s t o e x p l o i t a t i o n and G e o r g e ' s argument t h a t payment f o r t h e use o f l a n d i s an u n e c e s s a r y d r a i n on t h e p r o d u c t i v e c a p a c i t y of s o c i e t y , p r i v a t e p r o p e r t y and i n p a r t i c u l a r p r i v a t e p r o p e r t y i n l a n d r e m a i n s a f u n d a m e n t a l i n s i t u t i o n o f C a n a d i a n s o c i e t y . ( S c h l a t t e r , 1951, pp. 151-162; M a c p h e r s o n , 1978, pp. 15, 29-30, 59; G e o r g e , 1880, pp. 220-221 ) C a n a d i a n g o v e r n m e n t s l e g i t i m a t e l a n d as a form of 8 p r i v a t e p r o p e r t y b e c a u s e p r i v a t e p r o p e r t y , i n g e n e r a l , i s f u n d a m e n t a l t o c a p i t a l i s t e c o n o m i e s . I t i s , t h e r e f o r e , u n d e r s t a n d a b l e t h a t p r o p e r t y t h a t p r o p e r t y r i g h t s form t h e c o r n e r s t o n e o f government l a n d p o l i c y . A l t h o u g h a g u a r a n t e e of p r i v a t e p r o p e r t y r i g h t s i s n o t p r o v i d e d e x p l i c i t l y f o r i n t h e C h a r t e r of R i g h t s and Freedoms, p r o p e r t y r i g h t s a r e , as i n t h e B r i t i s h t r a d i t i o n of common law and government, u p h e l d by l e g i s l a t i v e s t a t u t e and by t h e j u d i c i a r y t h r o u g h t h e common law. A l t h o u g h t h e l e g i s l a t i v e b r a n c h of government c o u l d , a c c o r d i n g t o t h e common law, s e i z e a n y o n e ' s p r o p e r t y w i t h o u t c o m p e n s a t i o n , a l l C a n a d i a n p r o v i n c e s have p a s s e d e x p r o p r i a t i o n s t a t u t e s w h i c h e s t a b l i s h p r o c e d u r e s f o r c o m p e n s a t i n g p r o p e r t y owners when t h e s t a t e d e c i d e s t o a c q u i r e a p r i v a t e p r o p e r t y t h r o u g h e x p r o p r i a t i o n . When l a n d o w n e r s f e e l t h e y have been d e a l t w i t h u n f a i r l y by government and t h a t t h e i r p r o p e r t y r i g h t s have been v i o l a t e d , t h e y may a p p e a l t o t h e c o u r t s . The c o u r t s have t r a d i t i o n a l l y t a k e n a c o n s e r v a t i v e v i e w , g e n e r a l l y u p h o l d i n g a l a n d o w n e r ' s r i g h t s u n l e s s a s t a t u t e c l e a r l y g i v e s government some o v e r r i d i n g a u t h o r i t y . Thus, t h e A n g l o -C a n a d i a n t r a d i t i o n o f j u r i s p r u d e n c e has been m i n d f u l o f t h e d o c t r i n e of p r o p e r t y r i g h t s a nd has s u p p o r t e d t h e r i g h t s of p r i v a t e p r o p e r t y a s a f u n d a m e n t a l i n s t i t u t i o n of C a n a d i a n s o c i e t y . ( M a c N e i l , 1983, p. 349; S t e v e n s o n , 1983, p. 414) 9 1.2 Urban l a n d and urb a n l a n d p o l i c y W i t h t h e i n c r e a s i n g l y u r b a n i z e d c h a r a c t e r of C a n a d i a n s o c i e t y , u r b a n l a n d has become an i m p o r t a n t t y p e o f l a n d . Urban l a n d , u n l i k e l a n d i n g e n e r a l , i s more t h a n j u s t a n a t u r a l endowment. Urban l a n d must be " p r o d u c e d . " I t t a k e s p u b l i c and p r i v a t e i n v e s t m e n t i n r o a d s , s e w e r s , o f f i c e s , f a c t o r i e s , h o u s e s and s c h o o l s t o " p r o d u c e " u r b a n l a n d . Urban l a n d , t h e r e f o r e , i s a c o l l e c t i v e l y p r o d u c e d good. Y e t , l i k e l a n d i n g e n e r a l , u r b a n l a n d i s a p r i v a t e commodity. B o t h t h e p u b l i c and p r i v a t e i n v e s t m e n t i s a l l o c a t e d t o t h e owner o f a p a r t i c u l a r p a r c e l of l a n d . T h i s owner c a n , t h e r e f o r e , a p p r o p r i a t e t h e e n t i r e v a l u e of t h e s i t e even t h o u g h o n l y a p o r t i o n of t h e v a l u e a r i s e s from t h e i n v e s t m e n t made by t h e owner. T h i s d i s t i n g u i s h e s l a n d f r o m most o t h e r c o m m o d i t i e s b e c a u s e i t s v a l u e i s not p r i v a t e l y c r e a t e d , y e t i t i s p r i v a t e l y a p p r o p r i a t e d . A s e c o n d d i s t i n c t i v e q u a l i t y of l a n d a s a commodity i s t h a t l a n d i s a s o c i a l good b e c a u s e i t i s a n e c e s s i t y f o r most a s p e c t s of t h e f u n c t i o n i n g of a s o c i e t y . However, i t i s u s e d and a l l o c a t e d a c c o r d i n g t o t h e l o g i c o f p r i v a t e commodity m a r k e t s . I t i s h e r e t h a t many a n a l y s t s , b o t h p r e s e n t and p a s t , l o c a t e t h e " u r b a n l a n d p r o b l e m " : t h e c o l l e c t i v e p r o d u c t i o n y e t t h e p r i v a t e a p p r o p r i a t i o n of u r b a n l a n d v a l u e s and t h e n a t u r e of l a n d a s a s o c i a l good y e t t h e p r i v a t e a l l o c a t i o n of l a n d u s e . The t r e a t m e n t o f u r b a n l a n d a s a commodity t o be u s e d and a l l o c a t e d a c c o r d i n g t o market d y n a m i c s has g i v e n r i s e t o 10 a number of u r b a n l a n d p r o b l e m s . F o r example, t h e y have i n c l u d e d , f i r s t , t h e c o n f l i c t o f i n t e r e s t s between t h o s e s e e k i n g t o s p e c u l a t e i n l a n d w i t h t h o s e who seek t o use i t f o r s h e l t e r o r o t h e r p r o d u c t i v e p u r p o s e s . W h i l e i t i s i n t h e i n t e r e s t s of p r o d u c e r s and t h o s e r e q u i r i n g s h e l t e r t o m i n i m i z e t h e c o s t of l a n d , i t i s i n t h e i n t e r e s t s o f s p e c u l a t o r s t o maximize t h e p r i c e . ( M a s s e y and C a t a l a n o , 1978, p. 153) Second, b e c a u s e l a n d i n u r b a n a r e a s can o f t e n be u s e d f o r a wide v a r i e t y of p u r p o s e s t h e l o c a t i o n of non-c o n f o r m i n g l a n d u s e s ( s u c h as i n d u s t r i a l and r e s i d e n t i a l ) a d j a c e n t t o one a n o t h e r c r e a t e s p r o b l e m s . N o n - c o n f o r m i n g l a n d u s e s can r e s u l t i n t h e d e p r e c i a t i o n of p r o p e r t y v a l u e s . T h i r d , urban a r e a s have u n d e r g o n e p e r i o d s o f i n t e n s e l a n d s p e c u l a t i o n . R e s u l t i n g i n u n s t a b l e l a n d v a l u e s . T h i s l e a d s t o p r o b l e m s f o r t h o s e a t t e m p t i n g t o o b t a i n f i n a n c i n g f o r i n v e s t m e n t i n b u i l d i n g s w h i c h r e q u i r e urban l a n d . ( H a r v e y , 1974, pp. 12-16) Thus, w i t h r a p i d u r b a n g r o w t h and w i t h i n c r e a s i n g l y u r b a n i z e d i n d u s t r i a l p r o d u c t i o n d i s p l a c i n g a g r i c u l t u r a l p r o d u c t i o n a s t h e most s i g n i f i c a n t g e n e r a t o r o f w e a l t h and p r o s p e r i t y , t h e need f o r p u b l i c r e g u l a t i o n of t h e urb a n d e v e l o p m e n t p r o c e s s and t h e o p e r a t i o n o f t h e l a n d market became more a p p a r e n t . In h i s s t u d y of t h e h i s t o r y of u r b a n p l a n n i n g , S u t c l i f f e o b s e r v e s t h a t " f r o m t h e e a r l i e s t s t a g e s of i n d u s t r i a l i z a t i o n we c a n d e c t e c t a c l e a r t e n d e n c y f o r p u b l i c i n t e r v e n t i o n i n t h e u r b a n e n v i r o n m e n t " . ( S u t c l i f f e , 1981, p. 5) S u t c l i f f e n o t e s t h a t s t a t e i n t e r v e n t i o n i n u r b a n 11 d e v e l o p m e n t t o o k two main forms, t h e d i r e c t p u b l i c p r o v i s i o n o f i n f r a s t r u c t u r e s u c h as r o a d s , sewers and w a t e r , t h e r e b y h e l p i n g p r o d u c e urban l a n d and " t h e i m p o s i t i o n of o b l i g a t i o n s on t h e owners of u r b a n p r o p e r t y " t h e r e b y r e g u l a t i n g a s p e c t s of the urban d e v e l o p m e n t p r o c e s s . I t was p r o b l e m s a s s o c i a t e d w i t h t h e p r i v a t e l a n d d e v e l o p m e n t p r o c e s s w h i c h g r a d u a l l y gave r i s e t o t h e emergence of p u b l i c l a n d p o l i c i e s . ( I b i d , p. 5) Among t h e f i r s t o b l i g a t i o n s t o be imposed on u r b a n l a n d o w n e r s were r e g u l a t i o n s a f f e c t i n g h e a l t h s t a n d a r d s and b u i l d i n g q u a l i t y . H e a l t h c o d e s and b u i l d i n g b y l a w s were i n t r o d u c e d t o cope w i t h many of t h e p r o b l e m s r e s u l t i n g from t h e i n c r e a s e d d e n s i t y of u r b a n s e t t l e m e n t s . F o r example, i n O n t a r i o t h e f i r s t p u b l i c h e a l t h l e g i s l a t i o n was i n t r o d u c e d as e a r l y as 1832 t o cope w i t h a c h o l e r a e p i d e m i c by s e t t i n g ,up l o c a l b o a r d s of h e a l t h . The s c o p e of government r e g u l a t i o n o f l a n d use widened t h r o u g h o u t th e 19th and 2 0 t h c e n t u r y , p a r t i c u l a r l y i n l a r g e r u r b a n c e n t r e s , w i t h t h e i n t r o d u c t i o n of c o m p r e h e n s i v e h e a l t h , f i r e and b u i l d i n g b y l a w s . T h e s e c o n t r o l l e d t h e d e n s i t y of r e s i d e n t i a l d e v e l o p m e n t , t h e b u i l d i n g s m a t e r i a l s u s e d and p r e s c r i b e d minimum amounts o f open s p a c e a d j a c e n t t o r e s i d e n c e s . ( H u l c h a n s k i , 1981, pp. 2.1-2.14) Government a l s o had t o a d d r e s s a n o t h e r p r o b l e m , u n d e s i r e a b l e l a n d use p a t t e r n s . In r e s p o n s e , n u i s a n c e and z o n i n g b y l a w s were i n t r o d u c e d . T h e s e r e g u l a t i o n s were f i r s t a d v o c a t e d d u r i n g t h e "urban r e f o r m movement" of t h e f i r s t two d e c a d e s of t h i s c e n t u r y . A major aim of many b u s i n e s s m e n d u r i n g t h a t boom p e r i o d was on s e e k i n g methods of p r o t e c t i n g p r o p e r t y v a l u e s from n e g a t i v e e x t e r n a l i t i e s . Z o n i n g and n u i s a n c e b y l a w s emerged as one of a number of t o o l s f o r m u n i c i p a l governments t o d e a l w i t h t h e p r i v a t e l a n d m a r k e t . U n f e t t e r e d u r b a n d e v e l o p m e n t and t h e r e s u l t i n g c h a o t i c p a t t e r n s of l a n d u ses was a b a r r i e r s t o e f f i c i e n t and o r d e r l y u r b a n d e v e l o p m e n t and i n d u s t r i a l i z a t i o n . ( B l o o m f i e l d , 1982, pp. 258-261; Weaver, 1977, pp. 403-409) In r e s p o n s e t o t h e booms and b u s t s of t h e l a n d m a r k e t and t h e p a t t e r n of s c a t t e r e d , ' l e a p f r o g g i n g ' s u b d i v i s i o n s , m u n i c i p a l and p r o v i n c i a l governments began t o r e g u l a t e t h e s u b d i v i s i o n of l a n d w h i c h , t o some e x t e n t , has t h e e f f e c t of r e g u l a t i n g t h e c r e a t i o n of urban l a n d . Land c o u l d n o t be p u t t o r e s i d e n t i a l , i n d u s t i a l or c o m m e r c i a l urban use u n t i l i t was s e r v i c e d and d i v i d e d up i n t o m a r k e t a b l e p a r c e l s . E a c h p a r c e l c r e a t e d by s u b d i v i s i o n became market c o m m o d i t i e s f o r s a l e on t h e l a n d m a r ket. D u r i n g t h e t h e f i r s t d e c a d e s o f t h i s c e n t u r y most p r o v i n c e s i n t r o d u c e d s u b d i v i s i o n c o n t r o l r e g u l a t i o n s t o cope w i t h t h e rampant l a n d s p e c u l a t i o n and ' l e a p f r o g g i n g ' s u b d i v i s i o n s o c c u r i n g d u r i n g t h i s p e r i o d . (Weisman, 1978, pp. 1-10) In sum, t h e u r b a n r e f o r m and p u b l i c h e a l t h movements of t h e l a t e r p a r t of t h e 19th c e n t u r y and e a r l y 2 0 t h c e n t u r y r e a c t e d t o u r b a n d e v e l o p m e n t p r o b l e m s by i m p o s i n g a h o s t of r e g u l a t i o n s on t h e d e v e l o p m e n t of l a n d and u r g e d a g r e a t e r p u b l i c r o l e i n t h e c o - o r d i n a t i o n of t h e t i m i n g , l o c a t i o n and 1 3 c h a r a c t e r o f d e v e l o p m e n t . The p u b l i c s e c t o r , o f t e n w i t h t h e s u p p o r t o f t h e b u s i n e s s community, i n many c a s e s , a t t e m p t e d t o manage and a m e l i o r a t e p r o b l e m s r e s u l t i n g from l a n d d e v e l o p m e n t i n ways t h a t a t t i m e s i n f r i n g e d on t h e p r o p e r t y r i g h t s of u r b a n l a n d owners. A d v o c a t e s of new l a n d p o l i c i e s , s u c h as l a n d use p l a n n i n g and s u b d i v i s i o n r e g u l a t i o n s were c o n c e r n e d t h a t u n r e g u l a t e d u r b a n d e v e l o p m e n t and, i n p a r t i c u l a r , t h e a c t i o n s of a h a n d f u l of s p e c u l a t o r s was l e a d i n g t o t h e i n e f f i c i e n t use o f l a n d , i n s t a b i l i t y i n t h e l a n d and mortgage m a r k e t s and i n c r e a s e d t a x b u r d e n s t o pay f o r t h e o f t e n uneeded p u b l i c i n f r a s t r u c t u r e . However, few of t h e s e a d v o c a t e s q u e s t i o n e d , l e t a l o n e c h a l l e n g e d , t h e r i g h t t o f r e e l y exchange l a n d i n t h e m a r k e t . Thus, o v e r t h e c o u r s e o f t h i s c e n t u r y , government has begun t o a d d r e s s one a s p e c t of t h e u r b a n l a n d p r o b l e m , t h e a l l o c a t i o n of l a n d u s e s by t h e l a n d m a r k e t , but has not s e r i o u s l y c o n s i d e r e d t h e o t h e r a s p e c t , t h e p r i v a t e exchange of l a n d as a t y p i c a l commodity w h i c h a l l o w s f o r t h e f u l l a p p r o p r i a t i o n of c o l l e c t i v e l y p r o d u c e d l a n d v a l u e s . 1.3 G overnments and t h e p r o d u c t i o n of h o u s i n g One of t h e i m p o r t a n t u s e s o f u r b a n l a n d i s f o r h o u s i n g . G o v e r n m e n t s , i n t h e i r i n c r e a s i n g c o n c e r n d u r i n g t h i s c e n t u r y f o r t h e a f f o r d a b i l i t y , p h y s i c a l a d e q u a c y and l o c a t i o n of h o u s i n g , have had t o d e v e l o p p o l i c i e s t h a t a d d r e s s t h e u t i l i z a t i o n and a l l o c a t i o n of l a n d . T hese l a n d p o l i c i e s have e m p h a s i z e d t h e r e g u l a t i o n o f l a n d use t h r o u g h s u c h measures 1 4 as r e s i d e n t i a l l a n d use z o n i n g . Z o n i n g has been i n t r o d u c e d t o e n s u r e c e r t a i n d e n s i t y and a m e n i t y s t a n d a r d s a r e met i n t h e d e v e l o p m e n t of h o u s i n g . They have a l s o s o u g h t t o p r o t e c t p r o p e r t y v a l u e s by r e s t r i c t i n g t h e i n t r u s i o n of non-r e s i d e n t i a l l a n d u s e s . Land p o l i c i e s a s s o c i a t e d w i t h t h e p r o d u c t i o n of h o u s i n g have n e v e r sought t o r e s t r i c t t h e exchange of l a n d i n t h e p r i v a t e m a r k e t . Aimed a t i m p r o v i n g g e n e r a l r e s i d e n t i a l c o n d i t i o n s . Government i n v o l v e m e n t i n t h e p r o d u c t i o n of h o u s i n g a t t h e f e d e r a l l e v e l began i n 1919. T h i s expanded t h e scope of government i n v o l v e m e n t i n t h e urb a n l a n d market beyond t h e r e g u l a t i o n o f l a n d u s e s and t h e p r o v i s i o n of i n f r a s t r u c t u r e t o i n c l u d e p u b l i c i n v o l v e m e n t i n t h e s u p p l y of h o u s i n g . The f e d e r a l government i n t r o d u c e d t h e 1919 H o u s i n g Programme t o a d d r e s s t h e p r o b l e m of h o u s i n g v e t e r a n s a f t e r W o r l d War I i n view of t h e s c a r c i t y of h o u s i n g t h a t e x i s t e d i n t h e p o s t war p e r i o d . The 1919 programme made no s e r i o u s a t t e m p t t o do a n y t h i n g more t h a n s t i m u l a t e some a d d i t i o n a l p r i v a t e h o u s i n g s t a r t s t h r o u g h f e d e r a l h o u s i n g l o a n s . ( G r a u e r , 1939, p. 38) No f u r t h e r f e d e r a l h o u s i n g programmes were i n t r o d u c e d u n t i l 1935, a f e d e r a l e l e c t i o n y e a r i n t h e m i d d l e of t h e g r e a t d e p r e s s i o n . S i n c e 1935, t h e f e d e r a l , a s w e l l a s p r o v i n c i a l and m u n i c i p a l i n v o l v e m e n t i n h o u s i n g , has d r a m a t i c a l l y expanded i n n a t u r e and s c o p e . In t h e p o s t WW II p e r i o d government has become a major p l a y e r i n t h e p r o v i s i o n of a l l forms of h o u s i n g and as a c o n s e q u e n c e , an i m p o r t a n t f o r c e i n t h e r e s i d e n t i a l l a n d m a r k e t . (Rose, 1980, pp. 27-1 5 41) The f e d e r a l government became c o n c e r n e d w i t h u r b a n l a n d as a component of h o u s i n g i n t h r e e ways. F i r s t , i t c a l l e d f o r t h e use of town p l a n n i n g measures s u c h as s u b d i v i s i o n c o n t r o l s and i m p r o v e d n e i g h b o u r h o o d d e s i g n as a d v o c a t e d by t h e 1944 f e d e r a l A d v i s o r y Committee on R e c o n s t r u c t i o n and i t s s u b - c o m m i t t e e on h o u s i n g and community p l a n n i n g . S e c o n d , i t i n v e s t e d f u n d s i n government l a n d banks b e g i n n i n g i n 1949 t o e n s u r e t h e s u p p l y of s e r v i c e d r e s i d e n t i a l l a n d . A f t e r t h e S e c o n d W o r l d War, p e r i o d s of rampant l a n d s p e c l a t i o n and r a p i d l y i n c r e a s i n g l a n d c o s t s o f t e n f o c u s e d t h e a t t e n t i o n o f government o f f i c i a l s and h o u s i n g r e f o r m e r s on l a n d as key p a r t i n t h e h o u s i n g s u p p l y and a f f o r d a b i 1 i t y p r o b l e m . T h i r d , homeownership programmes s u c h as government mortgage l o a n s and mortgage i n s u r a n c e have s o u g h t t o e a s e a c c e s s t o t h e r e s i d e n t i a l r e a l e s t a t e m a r k e t . 1 .4 S umma r y Land p o l i c y i n Canada has, i n g e n e r a l , a l l o w e d t h e market exchange of l a n d t o f r e e l y o p e r a t e w h i l e i t has i n c r e a s i n g l y r e g u l a t e d t h e use o f l a n d . However, even a f t e r 80 y e a r s of l a n d use p l a n n i n g p o l i c i e s and a f t e r 50 y e a r s of h o u s i n g p o l i c y , we c o n t i n u e t o have h o u s i n g p r o b l e m s . The h y p o t h e s i s o f t h i s t h e s i s i s t h a t a p r i n c i p l e r e a s o n why C a n a d i a n s c o n t i n u e t o have h o u s i n g p r o b l e m s i s t h a t government h o u s i n g p o l i c y has t r e a t e d l a n d as a p r i v a t e l y h e l d market commodity much l i k e any o t h e r commodity. T h i s 1 6 t h e s i s e x a m i n e s t h e e x t e n t t o w h i c h u r b a n a n a l y s t s and p o l i c y - m a k e r s have a d d r e s s e d t h e • t r e a t m e n t o f l a n d as a market commodity. I t i d e n t i f i e s what urban l a n d p r o b l e m s t h a t were i d e n t i f i e d as b e i n g a s s o c i a t e d w i t h h o u s i n g p r o b l e m s . A l s o , l a n d p o l i c i e s t h a t were p r o p o s e d and i m p lemented i n r e s p o n s e t o p r o b l e m s r e l a t i n g t o t h e s u p p l y and c o s t of h o u s i n g a r e r e v i e w e d . The f o l l o w i n g f o u r c h a p t e r s e x p l o r e s t h e n a t u r e of l a n d p o l i c y i n r e g a r d s t o t h e p r o v i s i o n of h o u s i n g as i t has been a d o v c a t e d and i m p l e m e n t e d i n e a c h of f o u r p e r i o d s : 1900-1929, 1930-1939, 1940-1969 and 1970-1983. 1 7 CHAPTER TWO URBAN LAND PROBLEMS 1900-1929 The u r b a n l a n d p r o b l e m f i r s t a p p e a r e d as an i s s u e of c o n c e r n t o t h o s e who a d v o c a t e d government a c t i o n on h o u s i n g and u r b a n d e v e l o p m e n t p r o b l e m s d u r i n g t h e y e a r s l e a d i n g up t o t h e f i r s t w o r l d war. A g r o w i n g number of e n g i n e e r s , c i v i l s e r v a n t s , a r c h i t e c t s , s u r v e y o r s , b u s i n e s s m e n and o t h e r s , became i n t e r e s t e d i n h o u s i n g p r o b l e m s . Most o f t h o s e i n t e r e s t e d i n h o u s i n g were a l s o i n t e r e s t e d i n t h e i n s t i t u t i o n a l i z a t i o n of u r b a n p l a n n i n g as a f u n c t i o n of government. P l a n n i n g , and i n p a r t i c u l a r , r e g u l a t i o n of some p r o b l e m a t i c a s p e c t s of t h e l a n d d e v e l o p m e n t p r o c e s s , was v i e w e d a s p a r t of t h e s o l u t i o n t o t h e p r o b l e m s o f h o u s i n g the u r b a n w o r k i n g c l a s s i n s a n i t a r y c o n d i t i o n s . The p r o m i n e n t p l a n n e r s a d v o c a t i n g t h i s a p p r o a c h were Thomas Adams, F r a n k B e e r , F r a n k B u c k l e y , N o u l a n Couchon, A. G. D a l z e l l , C h a r l e s H o d g e t t s and H o r a c e Seymour. The f i r s t 15 y e a r s o f t h i s c e n t u r y were marked by v e r y r a p i d u r b a n i z a t i o n . R u r a l t o u r b a n m i g r a t i o n and u n p r e c e d e n t e d r a t e s of i m m i g r a t i o n c o n t r i b u t e d t o u r b a n growth. Growth was p a r t i c u l a r l y r a p i d i n t h e c o u n t r y ' s 18 w e s t e r n c i t i e s . F o r example, i n t h e f i r s t d e cade of t h i s c e n t u r y p o p u l a t i o n growth i n w e s t e r n c i t i e s was: C a l g a r y 940%, Edmonton 864%, V a n c o u v e r , 306% and W i n n i p e g , 225%. Many e a s t e r n c i t i e s were a l s o g r o w i n g q u i c k l y . From 1901 t o 1911 M o n t r e a l i n c r e a s e d i t s p o p u l a t i o n by 54% and T o r o n t o , 58%. H o u s i n g c o n s t r u c t i o n d u r i n g t h e y e a r s p r e c e d i n g t h e f i r s t w o r l d war was a l s o booming. The a v e r a g e a n n u a l number of h o u s i n g s t a r t s a l m o s t more t h a n t r i p l e d from an a n n u a l a v e r a g e of 20,450 c o m p l e t i o n s d u r i n g t h e f o u r y e a r s from 1900-1903 t o an a v e r a g e 73,100 c o m p l e t i o n s p e r y e a r d u r i n g t h e y e a r s 1909-1914.(See F i g u r e 1) T a b l e I i n d i c a t e s , t h e boom i n u r b a n g r o w t h and h o u s i n g c o n s t r u c t i o n l e d t o w i d e s p r e a d l a n d s p e c u l a t i o n i n and a r o u n d urban a r e a s . As T a b l e I shows, l a n d v a l u e s i n c r e a s e d d r a m a t i c a l l y d u r i n g t h e 1911-1915 p e r i o d . In 1926 a S a s k a t o o n l a n d d e a l e r e x p l a i n e d why l a n d s p e c u l a t i o n was rampant d u r i n g t h e pre-war p e r i o d : V e r y few p r o p e r t i e s were p u r c h a s e d f o r c a s h i n S a s k a t o o n d u r i n g t h e boom d a y s . The c h i e f c o n c e r n was t o r a i s e enough money f o r an i n i t i a l c a s h payment. F u t u r e payments, i t was assumed, would t a k e c a r e of t h e m s e l v e s . . . You c o u l d s e l l a n y t h i n g , anywhere, t o anybody, a t any p r i c e . ( C i t e d i n Thomas, 1981, p. 256) H o u s i n g c o s t s and r e n t s g e n e r a l l y i n c r e a s e d f a s t e r t h a n wages. A 1914 f e d e r a l B o a r d of I n q u i r y i n t o t h e c o s t of l i v i n g f o u n d t h a t from 1900 t o 1913 a v e r a g e wages had i n c r e a s e d 44% w h i l e a v e r a g e r e n t s had r i s e n 62%. However, w i t h t h e c o l l a p s e o f t h e w e s t e r n wheat enconomy and t h e s t a r t of t h e f i r s t w o r l d war, t h e boom i n u r b a n growth and 1 9 l a n d s p e c u l a t i o n came t o a h a l t . ( W e a v e r , 1977, pp. 10-13) D u r i n g t h e war y e a r s and t h e p o s t war p e r i o d t h e a v e r a g e a n n u a l number of c o m p l e t i o n s d e c r e a s e d t o a l m o s t h a l f t h e l e v e l b u i l t i n t h e f i v e y e a r s l e a d i n g up t o t h e war. A l t h o u g h by t h e l a t e 1920's t h e a n n u a l r a t e of h o u s i n g c o m p l e t i o n s r o s e t o a l m o s t 60,000 p e r y e a r , t h e y n e v e r r e a c h e d t h e r a t e s s e t d u r i n g t h e pre-war boom y e a r s . ( S e e a p p e n d i x T a b l e ) FIGURE 1 Dwelling Units Completed C a n a d a , 1 9 0 0 - 1 9 2 9 A J i \ Al \ a - * 1 / 10 1 9 0 0 1 9 0 5 1 9 1 0 1 9 1 5 Source: Appendix B of th i s report 1 9 2 0 1 9 2 5 21 T a b l e I P o p u l a t i o n and Land V a l u e I n c r e a s e s i n C a n a d i a n Urban C e n t r e s , P e r c e n t change, 1911 t o 1915 6 L a r g e s t c i t i e s 2nd g r o u p of c i t i e s 31,000 t o 7,000 3 r d g r o u p of c i t i e s 5,000 t o 10,000 P o p u l a t i o n + 26% + 32% + 17% Land V a l u e I n c r e a s e s + 38% + 21% + 60% S o u r c e : " M u n i c i p a l D e v e l o p m e n t i n Canada" (1921) Town P l a n n i n g and C o n s e r v a t i o n of L i f e , 7 ( 1 ) Jan.-Mar., pp. 1-6. 22 2.1 The emergence of a Town P l a n n i n g  and H o u s i n g Movement i n Canada By '1910 a town p l a n n i n g movement had emerged i n Canada. One g r o u p of p l a n n e r s f o c u s e d a l m o s t e x c l u s i v e l y on c i t y b e a u t i f i c a t i o n , c a l l i n g f o r t h e d e v e l o p m e n t of c i v i c s q u a r e s , major p u b l i c b u i l d i n g s and t h e r e c o n s t r u c t i o n of roadway s y s t e m s . A n o t h e r g r o u p p l a c e d more e m p h a s i s on l a n d use r e g u l a t i o n and t h e p l a n n i n g and d e s i g n o f s u b u r b a n n e i g h b o u r h o o d s . H o u s i n g was an e x p l i c i t c o n c e r n f o r many p l a n n e r s i n t h i s g r o u p . ( F o r more b a c k g r o u n d on t h i s p e r i o d , see H u l c h a n s k i , 1981, p. 50; Van Nus, 1977, pp. 162-184; Simpson, 1982, pp. 1-12; Weaver, 1977, pp. 393-413; and R u t h e r f o r d , 1.977, pp. 368-383.) Many of t h o s e p l a n n e r s i n t e r e s t e d i n h o u s i n g v i e w e d t h e ' s uburban s o l u t i o n ' as t h e answer t o many of t h e urban p r o b l e m s of t h e p e r i o d . They b e l i e v e d t h a t i m p r o v e d h o u s i n g would e n c o u r a g e b e t t e r c i t i z e n s h i p among t h e w o r k i n g c l a s s and d i s c o u r a g e s o c i a l u n r e s t . Improved h o u s i n g c o n d i t i o n s , f o r many p l a n n e r s , meant t h e encouragement o f homeownership and t h e p l a n n e d d e v e l o p m e n t o f t r a c t s of s i n g l e f a m i l y homes. F o r example, when d i s c u s s i n g the h o u s i n g p r o b l e m i n 1913 S i r Edmund O l s l e r i d e n t i f i e d t h e d e s i g n o f r e s i d e n t i a l d i s t r i c t s as t h e key h o u s i n g p r o b l e m . The h o u s i n g q u e s t i o n i n our c i t i e s i s , a s we a l l know, a v e r y d i f f i c u l t m a t t e r . The c o s t of l a n d has r i s e n , t h e c o s t of b u i l d i n g i s h i g h - we have not t h e o r g a n i z a t i o n f o r p r o p e r l y d i r e c t i n g t h e l a y o u t of d i s t r i c t s where workingmen's h o u s e s s h o u l d be 23 b u i l t . ( C o m m i s s i o n of C o n s e r v a t i o n , 1913, p. 9) One i n f l u e n c e on t h e e a r l y a d v o c a t e s o f government a c t i o n on h o u s i n g c o n d i t i o n s was t h e G a r d e n C i t y c o n c e p t a s f i r s t p r o p o s e d i n E b e n e z e r Howard's 1899 book Tommorrow: A P e a c e f u l P a t h t o R e a l Reform ( l a t e r r e - t i t l e d G arden C i t i e s f o r Tommorrow). Howard v i e w e d l a n d r e f o r m a s t h e b a s i s o f a l l r e f o r m l e a d i n g t o w a r d s i m p r o v e d u r b a n c o n d i t i o n s . The h o l d e r s of a g r i c u l t u r a l l a n d , a t l e a s t t h o s e who a r e w i l l i n g t o s e l l - a n d many of them a r e even now most a n x i o u s t o do so w i l l welcome t h e e x t e n s i o n o f an e x p e r i m e n t [ t h e d e v e l o p m e n t of Gar d e n C i t i e s ] . . . T h e h o l d e r s of c i t y l a n d s w i l l , so f a r as t h e i r m e r e l y s e l f i s h i n t e r e s t s p r e v a i l , g r e a t l y f e a r i t . In t h i s way, l a n d o w n e r s t h r o u g h o u t t h e c o u n t r y w i l l be d i v i d e d i n t o two o p p o s i n g f a c t i o n s , and t h e p a t h of l a n d r e f o r m - t h e f o u n d a t i o n on whi c h a l l r e f o r m must be b u i l t - w i l l be made c o m p a r a t i v e l y e a s y ( H o w a r d , p. 148) Among Howard's p r o p o s a l s f o r i m p r o v i n g u r b a n c o n d i t i o n s and th e h o u s i n g s i t u a t i o n , i n p a r t i c u l a r , was t h e c a l l f o r community o w n e r s h i p of l a n d . Land w o u l d be p u r c h a s e d a t a g r i c u l t u r a l p r i c e s and t h e n h e l d i n t r u s t by a Bo a r d o f T r u s t e e s . The community would r e a p t h e b e n e f i t s of t h e i n c r e a s e d l a n d v a l u e t h r o u g h t h e r e n t s c o l l e c t e d f o r use o f th e l a n d . These r e n t s would be r e - i n v e s t e d i n t h e community r a t h e r t h a n a l l o w e d t o be p r i v a t e l y a p p r o p r i a t e d . ( H o w a r d , 1899, pp. 122-123) Among t h e C a n a d i a n s aware o f t h e G a r d e n C i t y p r o p o s a l was G. T r a f f o r d H e w i t t , P r e s i d e n t of t h e P r o v i n c e of Nova S c o t i a H o u s i n g C o r p o r a t i o n . T r a f f o r d t o l d t h e 6 t h N a t i o n a l C o n f e r e n c e on C i t y P l a n n i n g h e l d i n T o r o n t o i n 1914 t h a t : 24 t h e o n l y s o l u t i o n t o t h e h o u s i n g p r o b l e m i s o f f e r e d by t h e G a r d e n C i t y and Town P l a n n i n g Movement... which has p r o v e d i t s e l f as a means of a v o i d i n g c o n g e s t i o n and o v e r c r o w d i n g . ( H e w i t t , 1914, p. 180) F u r t h e r m o r e , he c r i t i c i z e d t h e c u r r e n t p r a c t i c e of s u b u r b a n d e v e l o p m e n t where: The s p e c u l a t i v e owner of p r o p e r t y h a s , w i t h t h e a i d of t h e p r o v i n c i a l o r l o c a l l a n d s u r v e y o r , mapped out s t r e e t s and l o t s , so as t o make the most f o r t h e owners, w h i l e no t h o u g h t t o t h e q u e s t i o n o f how t h e work s h o u l d be done i n t h e i n t e r e s t o f t h e h e a l t h and c o n v e n i e n c e o f t h e community. ( I b i d , p. 188) However, t h e G a r d e n C i t y c o n c e p t r e m a i n e d o n l y a c o n c e p t and i t was n e v e r implemented i n Canada. The most i m p o r t a n t r o l e p l a y e d by t h e Garden C i t y c o n c e p t i n Canada was t h a t i t p r o v i d e d i n s p i r a t i o n f o r t h o s e a d v o c a t i n g i m p r o v e d c o n d i t i o n s i n t h e d e v e l o p m e n t of s u b u r b a n r e s i d e n t i a l a r e a s . D u r i n g t h i s e a r l y p e r i o d , C a n a d i a n p l a n n e r s f o c u s e d t h e i r a t t e n t i o n on t h e a d o p t i o n o f p r o v i n c i a l town p l a n n i n g l e g i s l a t i o n w h i c h would e n a b l e t h e m u n i c i p a l i t i e s t o p r e p a r e m u n i c i p a l town p l a n s , implement s u b d i v i s i o n r e g u l a t i o n s and impose b e t t e r m e n t l e v i e s . Thomas Adams e x p l a i n e d t h e f u n c t i o n of p l a n n i n g i n t h i s way: i t i s t h e e x e r c i s e o f f o r e s i g h t i n t h e l a y -out of l a n d ; i t i s p a r t of t h e p r o b l e m of c o m b i n i n g h e a l t h y l i v i n g c o n d i t i o n s w i t h sound economic d e v e l o p m e n t . ( A d a m s , 1915, p. 307) Town p l a n n i n g m e a s u r e s , a c c o r d i n g t o t h e e a r l y p l a n n e r s , w o u l d e n s u r e t h a t l a n d s p e c u l a t i o n and ' l e a p f r o g g i n g ' 25 s u b d i v i s i o n s would not i n h i b i t t h e p r o d u c t i v e c a p a c i t i e s of s o c i e t y and impose u n n e c e s s a r y c o s t s of p u b l i c a u t h o r i t i e s . 2.2 L a n d s p e c u l a t i o n and t h e e a r l y town p l a n n e r s Most of t h e e a r l y a d v o c a t e s of p l a n n i n g d e f i n e d l a n d s p e c u l a t i o n as t h e key urban, l a n d p r o b l e m , a r g u i n g t h a t l a n d s p e c u l a t i o n d e c r e a s e d th e a f f o r d a b i l i t y of h o u s i n g and e n c o u r a g e s t h e s c a t t e r i n g of r e s i d e n t i a l d e v e l o p m e n t on t h e u r b a n f r i n g e . The p r o b l e m p o s e d by l a n d s p e c u l a t i o n f o r h o u s i n g t h e a v e r a g e worker was t y p i c a l l y d e s c r i b e d i n t h e f o l l o w i n g t e r m s : T h i s i n c r e a s e i n l a n d c o s t i s p a r t l y owing t o t h e i n c r e a s e d c o s t of improvements, but i s c h i e f l y due t o an u n w a r r a n t e d i n c r e a s e i n t h e p r i c e o f a g r i c u l t u r a l l a n d s , as soon a s t h e y a r e d i v i d e d i n t o l o t s . The b u l k of t h i s i n c r e a s e goes i n t o t h e p o c k e t s of r e a l e s t a t e s p e c u l a t o r s and i s a r e a l danger t o t h e f u t u r e of Canada. T h e s e c o n d i t i o n s c a u s e the p r o v i d i n g of h o u s e s f o r t h e o c c u p a n c y o f i n d u s t r i a l w o r k e r s a t a r e a s o n a b l e r e n t a l , t o be d i f f i c u l t . ( Simpson, 1915, p. 17) Most a d v o c a t e s o f l a n d r e f o r m i n s i s t e d t h a t l a n d s p e c u l a t i o n i n c r e a s e d l a n d p r i c e s so t h a t a d e q u a t e h o u s i n g was u n a f f o r d a b l e t o a l a r g e g r o u p o f w o r k i n g c l a s s f a m i l i e s s e e k i n g h o u s i n g i n urban a r e a s . One o b s e r v e r , w r i t i n g about h o u s i n g c o n d i t i o n s i n t h e c i t y o f V a n c o u v e r d u r i n g t h i s p e r i o d n o t e d t h a t : Q u i t e a few ( w o r k i n g c l a s s f a m i l i e s ) a r e p r o c e e d i n g t o a c q u i r e t h e i r own homes....Very few i n d e e d o f t h e s e l i v e w i t h i n e a s y w a l k i n g d i s t a n c e of t h e i r work, 26 most of them b e i n g d r i v e n by t h e h i g h p r i c e o f l a n d t o seek l o t s more w i t h i n t h e i r f i n a n c i a l s c o p e i n c o m p a r a t i v e l y o u t l y i n g a r e a s . ( F r i p p , 1914, p. 1276) The pre-WW I urba n r e a l e s t a t e boom was marked by t h e s u b d i v i s i o n of a g r i c u l t u r a l l a n d o f t e n f a r from t h e b u i l t up m a r g i n s o f e x i s t i n g c o m m u n i t i e s . Known as ' l e a p f r o g g i n g ' s u b d i v i s i o n , t h i s p a t t e r n of h a p h a z a r d g r o wth was of g r e a t c o n c e r n t o m u n i c i p a l o f f i c i a l s and a d v o c a t e s of h o u s i n g r e f o r m . R e d u c i n g l a n d s p e c u l a t i o n and t h e c o s t o f s e r v i c e s was v i e w e d as one way of r e d u c i n g t h e o v e r a l l c o s t of new s u b u r b a n h o u s i n g . ( A d a m s , 1916, p. 73) C r i t i c s of s u b u r b a n l a n d s p e c u l a t i o n a t t e m p t e d t o d i s t i n g u i s h between a c c e p t a b l e and u n a c c e p t a b l e ways o f h o l d i n g and s e l l i n g l a n d . Thomas Adams w r o t e t h a t t h e r e was n o t h i n g wrong w i t h making p r o f i t on t h e s a l e of l a n d . In h i s w r i t i n g s he o f t e n d i s t i n g u i s h e d between ' l a n d g a m b l i n g ' and ' l a n d s p e c u l a t i o n ' . L a n d g a m b l i n g , a c c o r d i n g t o Adams, was th e c u l p r i t . W r i t i n g i n t h e C o n s e r v a t i o n of L i f e i n 1916, Adams a s k e d : I s i t not t i m e t o make some i n v e s t i g a t i o n i n t o t h e methods t h a t have p u r s u e d and t h e p r o b l e m s t h a t have been c r e a t e d by t h e r e a l e s t a t e community as d i s t i n c t from p r o p e r and l e g i t i m a t e r e a l e s t a t e s p e c u l a t i o n ? (Adams, 1916, p. 73) Land g a m b l i n g was, i n Adam's mind, when a l a n d h o l d e r saw t h e p u r c h a s e of s u b u r b a n l a n d as an ' a l l or n o t h i n g ' p r o p o s i t i o n where he would s u b d i v i d e t h e l a n d , have i t s e r v i c e d by t h e m u n i c i p a l i t y and t h e n a t t e m p t t o s e l l t h e l o t s f o r r e s i d e n t i a l d e v e l o p m e n t . I f t h e landowner f a i l e d t o make a 27 p r o f i t on t h e l a n d s a l e s , he would abandon t h e l a n d l e a v i n g i t v a c a n t and t h e m u n i c i p a l i t y w i t h a s i z e a b l e i n v e s t m e n t i n i n f r a s t r u c t u r e t h a t was n o t i m m e d i a t e l y needed. On t h e o t h e r hand, a c c e p t a b l e l a n d s p e c u l a t i o n , a c c o r d i n g t o Adams, was when a l a n d h o l d e r took p r o f i t s f r o m t h e s a l e of h i s l a n d s w i t h o u t p l a c i n g s u c h a g r e a t b u r d e n on t h e p u b l i c p u r s e . ( A d a m s , 1916, p. 73) W. F. B u r d i t t , C h a i r m a n of t h e S t . John Town P l a n n i n g C o m m i s s i o n , i n a p a p e r p r e s e n t e d t o a 1917 Urban and R u r a l D e v e l o p m e n t c o n f e r e n c e i n W i n n i p e g , a g r e e d 1 w i t h Adams and s u g g e s t e d t h a t l a n d s p e c u l a t i o n r e p r e s e n t e d t h e e x c e s s e s of a l i m i t e d number of l a n d o w n e r s . He a r g u e d t h a t l a n d use p l a n n i n g would e n s u r e t h a t t h e a c t i o n s o f t h e l a n d s u b d i v i d e r r e f l e c t e d t h e g e n e r a l i n t e r e s t of t h e community. In t h e p l a n n i n g o f l a n d f o r u r b a n use, t h e s u b d i v i d e r i s n o t t h e o n l y p a r t y i n t e r e s t e d ; t h e p r o s p e c t i v e o c c u p i e r and t h e community s h o u l d a l s o be c o n s i d e r e d . The o b j e c t of i n t e l l i g e n t p l a n n i n g s h o u l d be t o h a r m o n i z e t h e s e t h r e e i n t e r e s t s , w h i c h a r e not so d i v e r g e n t as m i g h t a p p e a r . ( B u r d i t t , 1917, pp. 71-72) A c c o r d i n g t o Adams, B u r d i t t and o t h e r p r o m i n e n t p l a n n e r s of t h e d a y, e x c e s s i v e l a n d s p e c u l a t i o n , not p r i v a t e l a n d o w n e r s h i p , was t h e major u r b a n l a n d p r o b l e m r e l a t i n g t o h o u s i n g . I t was t h i s p r o b l e m , s p e c u l a t i o n , w h i c h government l a n d p o l i c y had t o a d d r e s s . 2.3 P r o p o s a l s f o r government a c t i o n on u r b a n l a n d p o l i c y The most common re c o m m e n d a t i o n s made f o r l a n d p o l i c y were: (1) some form of b e t t e r m e n t t a x on l a n d : (2) 28 s u b d i v i s i o n and l a n d use r e g u l a t i o n ; and (3) g r e a t e r g overnment i n v o l v e m e n t i n t h e s u p p l y of h o u s i n g . Adam S h o r t t , an e c o n o m i s t who a d v o c a t e d l a n d t a x e s , c a l l e d f o r a t a x on t h e u n e a r n e d i n c r e m e n t : What i s needed i s a t a x t h a t w i l l t a x t h e s p e c u l a t i o n . T h i s would not be a c a s e o f jumping on a man s i m p l y b e c a u s e he was d e a l i n g i n l a n d . Not a t a l l . I t i s r i g h t t h a t , d u r i n g t h i s p e r i o d o f e x c e p t i o n a l p r o s p e r i t y f o r t h o s e d e a l i n g i n l a n d , t h e m u n i c i p a l i t y s h o u l d g e t a s l i c e of t h e p r o f i t s of t h a t p r o s p e r t y a t t h a t t i m e . ( S h o r t t , 1922, p. 17) Such p r o p o s a l s were s i m i l a r t o t h e b e t t e m e n t l e v i e s i n t r o d u c e d i n t h e 1909 B r i t i s h Town P l a n n i n g A c t . A d r a f t p r o v i n c i a l p l a n n i n g a c t p r e p a r e d by Adams as town p l a n n i n g a d v i s o r t o t h e Commission of C o n s e r v a t i o n a l s o i n c l u d e d p r o v i s i o n s f o r b e t t e r m e n t l e v i e s . A l t h o u g h p r o p o s a l s f o r t a x i n g t h e u n e a r n e d i n c r e m e n t were n o t uncommon t h e y were n e v e r i m p l e m e n t e d . The s i n g l e t a x , as p r o p o s e d by Henry George, was r a r e l y p r o p o s e d by t h e e a r l y town p l a n n e r s . Thomas Adams d i s c o u r a g e d c o m m u n i t i e s from i m p l e m e n t i n g h i g h l a n d t a x e s . W r i t i n g i n 1919, when many c o m m u n i t i e s m a i n t a i n t e d h i g h l a n d v a l u e a s s e s s m e n t s d e s p i t e lower l a n d p r i c e s , Adams warned t h a t h i g h l a n d t a x e s might be a means of d e s t r o y i n g p r o d u c t i o n and b u r d e n i n g p r o d u c e r s i n s t e a d of t h e s p e c u l a t o r s i n a c o u n t r y where l a n d i s p l e n t i f u l and owned by 50 o r more per c e n t o f t h e c i t i z e n s . ( A d a m s , 1 9 1 9 , p. 367) He s u g g e s t e d t h a t t h e time t o c o l l e c t a l a n d t a x or a b e t t e r m e n t l e v y was when l a n d was c o n v e r t e d from 29 a g r i c u l t u r a l t o urb a n u s e . Adams a d v o c a t e d t h e t a x a t i o n of th e u n e a r n e d i n c r e m e n t 1 b e c a u s e i t was t h e s e were s o c i a l l y , not p r i v a t e l y c r e a t e d . ( A d a m s , 1917, p. 114) A s e c o n d s o l u t i o n p r o p o s e d f o r urb a n l a n d p r o b l e m s were r e g u l a t i o n s s u c h as s u b u r b a n d e v e l o p m e n t r e d u c i n g t h e p o t e n t i a l f o r l a n d v a l u e i n c r e a s e s , r e g u l a t i o n s imposed c o n t r a i n t s on t h e t h e t i m i n g and d e s i g n of new s u b d i v i s i o n s r e d u c i n g t h e p o t e n t i a l f o r ' l e a p f r o g g i n g ' s u b d i v i s i o n s and t h e r e b y r e d u c i n g t h e m u n i c i p a l c o s t of s e r v i c i n g s u b d i v i s i o n s . Thomas Adams e x p l a i n e d the r a t i o n a l e f o r s u b d i v i s i o n c o n t r o l s i n t h i s way: The a t t i t u d e of mind w h i c h has p e r m i t t e d i n d i v i d u a l c i t i z e n s and p o l i t i c a l l e a d e r s t o i n d u l g e i n an o r g y of l a n d s p e c u l a t i o n has not o n l y added e n o r m o u s l y t o t h e l i a b i l i t i e s of t h e c i t i e s , but a l s o added t o t h e t a x e s on i n d u s t r y , a s a c o n s e q u e n c e of a w a s t e f u l s y s t e m of c o n s t r u c t i n g l o c a l improvements.(Adams, 1921, pp. 12-13) Thr o u g h t h e p r o c e s s of of p u b l i c p l a n n i n g of a s p e c t s of l a n d d e v e l o p m e n t , Adams a r g u e d , h o u s i n g and g e n e r a l u r b a n c o n d i t i o n s would be i m p r o v e d : The p r o p e r c o n t r o l of l a n d d e v e lopment i s needed t o p r e v e n t t h e undue d e n s i t y of b u i l d i n g s i n p a r t s of our c i t i e s and undue s c a t t e r i n g o f b u i l d i n g s i n o t h e r p a r t s . . . A l l l a n d s h o u l d be p l a n n e d w i t h t h e d e f i n i t e 'The u n e a r n e d i n c r e m e n t i s t h e i n c r e a s e i n l a n d v a l u e s r e s u l t i n g from g e n e r a l e conomic growth and community d e v e l o p m e n t . T h i s i n c r e m e n t i s d e f i n e d as u n e a r n e d b e c a u s e t h e i n c r e a s e i n l a n d v a l u e i s not g e n e r a t e d due t o any e f f o r t on t h e p a r t of t h e l a n d o w n e r . 30 o b j e c t o f s e c u r i n g h e a l t h , c o n v e n i e n c e and a m e n i t y i n c o n n e c t i o n w i t h i n d u s t r y and r e s i d e n c e . ( A d a m s , 1919, p. 472) Adams was t r y i n g t o a d d r e s s t h e p o t e n t i a l n e g a t i v e i m p a c t s on t h e p u b l i c o f l a n d s p e c u l a t i o n f o r b o t h newly d e v e l o p i n g s u b u r b a n l a n d a s w e l l as t h e a l r e a d y d e v e l o p e d u r b a n a r e a s . As m i g h t w e l l be e x p e c t e d , t h e r e was a f a i r amount of o p p o s i t i o n t o s u c h p r o p o s a l s , p a r t i c u l a r l y from t h e r e a l e s t a t e community. M o n t r e a l e n g i n e e r and t h e n V i c e - P r e s i d e n t o f t h e Town P l a n n i n g I n s t i t u t e of Canada James Ewing, f o r example, w r i t i n g i n 1921 on p r o p o s a l s f o r town p l a n n i n g c o n t r o l s , n o t e d t h a t b e c a u s e l a n d use r e g u l a t i o n s i n t e r f e r e w i t h t h e r i g h t s of p r i v a t e l a n d o w n e r s h i p t h e y a r e v i g o r o u s l y o p p o s e d by many i n d i v i d u a l s and f i r m s . A n o t h e r o b j e c t i o n l i k e l y t o be r a i s e d i s t h a t we a r e s t a r t i n g t o i n t e r f e r e w i t h i n d i v i d u a l i n t e r e s t s and t h e r i g h t s o f p r i v a t e p r o p e r t y . I f t h e r e i s one t h i n g more t h a n a n o t h e r t h a t has b r o u g h t us i n t o t h i s mess i t i s t h e a s s e r t i o n and e x e r c i s e of i n d i v i d u a l p r i v l e g e o v e r p u b l i c i n t e r e s t and t h e common g o o d . ( E w i n g , 1921, p. 8) F o r p l a n n e r s s u c h as Adams and Ewing, o b l i g a t i o n s had t o be imposed on l a n d o w n e r s t h r o u g h s u b d i v i s i o n c o n t r o l s t h a t w ould e n s u r e t h a t t h e m u n i c i p a l government's i n t e r e s t i n t h e e f f i c i e n t use of i n f r a s t r u c t u r e was a c h i e v e d . T h e s e o b l i g a t i o n s , t h e y a r g u e d , would d i s c o u r a g e l a n d s p e c u l a t i o n on t h e f r i n g e o f u r b a n a r e a s . A t h i r d s o l u t i o n t o l a n d and h o u s i n g p r o b l e m s was g r e a t e r government i n v o l v e m e n t i n t h e s u p p l y o f h o u s i n g i n o r d e r t o p r o v i d e an a l t e r n a t i v e f o r t h o s e who c o u l d not a f f o r d market h o u s i n g . P r o p o s a l s f o r t h e p r o v i s i o n of 31 w o r k i n g c l a s s h o u s i n g were put f o r w a r d by a c ommittee of T o r o n t o m a n u f a c t u r e r s as e a r l y as 1907. In d o i n g so, t h e y u r g e d a programme t h a t would a s s i s t w o r k e r s i n t h e p u r c h a s e of h o u s i n g and d o w n p l a y e d any p r o p o s a l s f o r r e n t a l h o u s i n g b e c a u s e , t h e y a r g u e d , t h e r e was a much s t r o n g e r o r i e n t a t i o n t o w a r d s p r i v a t e l a n d o w n e r s h i p i n N o r t h A m e r i c a than t h e r e was i n o t h e r p a r t s of t h e w o r l d . In E n g l a n d t h e p e o p l e a r e of a more c o n s e r v a t i v e c h a r a c t e r and a r e q u i t e u s e d t o t h e r e n t a l s y s t e m . In Canada t h e a v e r a g e c i t i z e n i s more a m b i t i o u s and d e s i r e s p r o p e r t y s h i p . ( R o d e n , 1907, p. 653) I t was n o t u n t i l s e v e r a l y e a r s l a t e r t h a t C. Y o r a t h , C i t y C o m m i s s i o n e r f o r t h e C i t y o f S a s k a t o o n , a d v o c a t e d government measures t o l o w e r t h e c o s t of h o u s i n g . T h i s p r o p o s a l was a l s o d e s i g n e d t o make homeownership more a f f o r d a b l e . He s u g g e s t e d t h a t l o c a l a u t h o r i t i e s p u r c h a s e a g r i c u l t u r a l l a n d f o r e v e n t u a l use as r e s i d e n t i a l l o t s . He a l s o s u g g e s t e d t h a t l o c a l b u i l d i n g s o c i e t i e s might be e n c o u r a g e d t o work w i t h l o c a l a u t h o r i t i e s i n o b t a i n i n g l a n d f o r h o u s i n g . ( Y o r a t h , 1914, p. 109) Adams p r o p o s e d a homestead programme t h a t would g r a n t f r e e l a n d t o t h o s e n e e d i n g i t f o r h o u s i n g . He a r g u e d t h a t i f f a m i l i e s were r e q u i r e d t o b u i l d a house on t h e l o t , " t h e r e might be no o b j e c t i o n t o o f f e r i n g f r e e s i t e s t o i n d i v i d u a l s d e s i r o u s of e r e c t i n g homes f o r t h e m s e l v e s " . ( A d a m s , 1914, p. 29) The r a n g e of t h e p r o p o s a l s f o r c u r b i n g l a n d s p e c u l a t i o n , however, d i d not i n c l u d e measures t h a t c h a l l e n g e d t h e i n s t i t u t i o n of p r i v a t e l a n d o w n e r s h i p . These 32 p r o p o s a l s o n l y s o u g h t t o impose o b l i g a t i o n s on t h e owners of l a n d r a t h e r t h a n m o d i f y t h e b a s i c r i g h t s of o w n e r s h i p and excha n g e a s s o c i a t e d w i t h t h e r i g h t s of p r o p e r t y . 2.4 The 1919 F e d e r a l H o u s i n g Programme and t h e La n d P r o b l e m W h i l e t h e Commission of C o n s e r v a t i o n had a d v o c a t e d l a n d use r e g u l a t i o n , g r e a t e r government i n v o l v e m e n t i n t h e p r o v i s i o n o f h o u s i n g and b e t t e r m e n t l e v i e s , t h e f e d e r a l g o v e r n m e n t ' s f i r s t h o u s i n g programme was not u n t i l 1919. The p e r i o d f o l l o w i n g t h e end of t h e F i r s t W o r l d War was marked by a g r e a t d e a l of l a b o u r u n r e s t and s e v e r e h o u s i n g s h o r t a g e s . D u r i n g 1919 t h e f e d e r a l government e s t a b l i s h e d a R o y a l C o m m i s s i o n on I n d u s t r i a l R e l a t i o n s and l a t e r c a l l e d a N a t i o n a l I n d u s t r i a l " C o n f e r e n c e o f p o l i t i c i a n s , b u s i n e s s and l a b o u r t o d i s c u s s a programme t o cope w i t h i n d u s t r i a l u n r e s t . B o t h b o d i e s i d e n t i f i e d p o o r h o u s i n g c o n d i t i o n s as a c o n t r i b u t i n g f a c t o r t o l a b o u r u n r e s t and c a l l e d f o r government a c t i o n on t h e h o u s i n g p r o b l e m . The R o y a l Commission i n d i c a t e d i n i t s r e p o r t t h a t " t h e h i g h p r i c e of b u i l d i n g l a n d and o f b u i l d i n g m a t e r i a l have made i t i m p o s s i b l e f o r t h e worker t o p r o v i d e h i m s e l f w i t h a ho m e " . ( R o y a l Commission I n d u s t r i a l R e l a t i o n s , 1919 p. 13) No s p e c i f i c r e f e r e n c e was made t o l a n d s p e c u l a t i o n nor was u r b a n l a n d f u r t h e r d i s c u s s e d beyond a r e f e r e n c e t o t h e h i g h c o s t o f b u i l d i n g s i t e s . The N a t i o n a l I n d u s t r i a l C o n f e r e n c e , w h i c h was c o n v e n e d s e v e r a l months l a t e r , i d e n t i f i e d t h e h i g h c o s t o f u r b a n l a n d 33 as one c a u s e of t h e h o u s i n g p r o b l e m . Land s p e c u l a t i o n was m e n t i o n e d i n one of t h e r e s o l u t i o n s a d o p t e d u n a n i m o u s l y by t h e c o n f e r e n c e . The r e s o l u t i o n s t a t e d , i n p a r t , t h a t "much i n d u s t r i a l u n r e s t , economic l o s s and s o c i a l s u f f e r i n g has r e s u l t e d from l a n d s p e c u l a t i o n , and i n s u f f i c i e n t h o u s i n g , and h i g h r e n t s " . ( N a t i o n a l I n d u s t r i a l C o n f e r e n c e , 1919, p. 122) H o u s i n g , however, r e c e i v e d l i t t l e a t t e n t i o n compared t o s u c h i s s u e s a s s t r i k e s and t h e need f o r a minimum wage. In December 1919 t h e f e d e r a l c a b i n e t p a s s e d by o r d e r -i n - c o u n c i l an a p p r o p r i a t i o n of $25 m i l l i o n t o a s s i s t i n t h e c o n s t r u c t i o n of h o u s i n g . In i t s i d e n t i f i c a t i o n o f t h r e e g e n e r a l o b j e c t i v e s f o r t h e 1919 H o u s i n g Programme, t h e government f o c u s e d a t t e n t i o n on u r b a n l a n d p r o b l e m s : . 1 ) t o promote t h e e r e c t i o n o f d w e l l i n g h o u s e s of modern c h a r a c t e r t o r e l i e v e c o n g e s t i o n of p o p u l a t i o n i n c i t i e s and towns; 2) t o p u t w i t h i n r e a c h of a l l workingmen, p a r t i c u l a r l y r e t u r n e d s o l d i e r s , t h e o p p o r t u n i t y of a c q u i r i n g t h e i r own homes a t a c t u a l c o s t of t h e b u i l d i n g and l a n d a c q u i r e d a t a f a i r v a l u e , t h u s e l i m i n a t i n g t h e p r o f i t s of t h e s p e c u l a t o r ; 3) t o c o n t r i b u t e t o t h e g e n e r a l h e a l t h and w e l l - b e i n g of t h e community by e n c o u r a g i n g s u i t a b l e town p l a n n i n g and h o u s i n g s c h e m e s . ( C a n a d a , 1919, p. 10) The b r o c h u r e e x p l a i n i n g t h e programme, which was w r i t t e n by Thomas of Adams, s t a t e d t h a t " t h e p r o v i s i o n h o u s e s , so f a r as i t may be r e g a r d e d as a p u b l i c d u t y , i s a m a t t e r w h i c h p r o p e r l y comes w i t h i n t h e j u r i s d i c t i o n of t h e p r o v i n c e s and t h e m u n i c i p a l i t i e s " . ( I b i d , p. 10) The g o v e r n m e n t ' s d e s c r i p t i o n o f i t s h o u s i n g programme, t h e r e f o r e , r e c o g n z i e d 34 t h a t i n some i n s t a n c e s t h e p r o v i s i o n o f h o u s i n g c o u l d be a p u b l i c r e p o n s i b i l i t y , t h a t t h e p a s t p a t t e r n of u r b a n d e v e l o p m e n t and p r i v a t e s e c t o r h o u s i n g d e v e l o p m e n t s had not been s a t i s f a c t o r y and t h a t t h e r e was s u c h a t h i n g as a f a i r p r i c e f o r l a n d . A 1919 f e d e r a l government p u b l i c a t i o n , C o n s e r v a t i o n of L i f e , l i n k e d t h e u r b a n l a n d p r o b l e m w i t h h o u s i n g p r o b l e m s . I t e x p l a i n e d t h a t t h e programme was n e e d ed b e c a u s e , i n p a r t , h o u s i n g p r o b l e m s had r e s u l t e d from u r b a n l a n d p r o b l e m s . At p r e s e n t t h e workingman has t o o many ' i n t e r e s t s ' a g a i n s t him i n w a n t i n g a s i t e a t a r e a s o n a b l e c o s t f o r a home. The r e a l e s t a t e o p e r a t o r wants h i s b i g p r o f i t out o f t h e l a n d ; t h e c i t y c o u n c i l wants i t s h i g h a s s e s s m e n t v a l u e s o f l a n d i n o r d e r t o keep down t h e t a x r a t e . . . a g a i n s t such a c o m b i n a t i o n i t a p p e a r s d i f f i c u l t t o get l a n d a t a c h e a p r a t e f o r h o u s i n g s u b s i d i e s . ( A d a m s , 1919, p. 1) However, the programme d i d not t a c k l e t h e l a n d p o l i c y i s s u e . I n s t e a d , i t m e r e l y a d v a n c e d f u n d s t o the p r o v i n c e s t o be l o a n e d t o b u i l d e r s f o r t h e c o n s t r u c t i o n o f h o u s i n g . By t h e t e r m i n a t i o n of t h e programme i n 1923, 6,242 h o u s e s had been b u i l t i n 176 m u n i c i p a l i t i e s on s c a t t e r e d s i t e s w i t h t h e s e p u b l i c l y f i n a n c e d l o a n s . ( G r a u e r , 1939, p. 35-38) B o t h government o f f i c i a l s and h o u s i n g r e f o r m e r s v i e w e d t h e programme as a f a i l u r e b e c a u s e i t d i d n o t p r o v i d e h o u s i n g f o r t h e a v e r a g e w o r k i n g p e r s o n . Most of t h e h o u s i n g was o n l y a f f o r d a b l e f o r t h e m i d d l e income f a m i l i e s a b l e t o a f f o r d t h e r e q u i r e d down payment and t h e n q u a l i f y f o r t h e mortgage l o a n . Though t h e programme had emerged from a c o n c e r n a b o u t i n d u s t r i a l u n r e s t and t h e p r o b l e m s o f h o u s i n g 35 i n d u s t r i a l w o r k e r s , t h e h o u s i n g programme f a i l e d t o r e a c h t h e s e f a m i l i e s . Even i f i t had, t h e programme would have had a l i t t l e impact due t o i t s l i m i t e d f u n d i n g . The programme's f u n d s were a l l u t i l i z e d by 1923 and t h e government d i d not u n d e r t a k e any f u r t h e r d i r e c t i n v o l v e m e n t i n t h e p r o v i s i o n of u r b a n h o u s i n g u n t i l 1935. ( G r a u e r , 1939, p. 38; Seymour, 1939, pp. 9-10) To t h e e x t e n t t h a t i t s t i m u l a t e d h o u s i n g c o n s t r u c t i o n , t h e 1919 programme s u p p o r t e d t h e p r i v a t e l a n d market by i n c r e a s i n g t h e demand f o r r e s i d e n t i a l l o t s . 2.5 The 1920's: C i t y P l a n n e r s and H o u s i n g F o r most g o v e r n m e n t s , t h e h o u s i n g p r o b l e m was not of g r e a t c o n c e r n d u r i n g t h e 1920's. As i n d i c a t e d by f i g u r e 1, h o u s i n g s t a r t s i n c r e a s e d from t h e d e p r e s e d l e v e l s of t h e l a t e t e e n s . However, some members of t h e e m e r g i n g p l a n n i n g p r o f e s s i o n c o n t i n e d t o a d v o c a t e more government a c t i o n on h o u s i n g p r o b l e m s . F o r most p l a n n e r s , h o u s i n g was a p h y s i c a l l a n d use p r o b l e m . P l a n n e r s were c o n c e r n e d w i t h t h e m i x t u r e of i n d u s t r i a l and c o m m e r c i a l l a n d u s e s w i t h h o u s i n g . A l s o , t h e y s o u g h t t h e r e d u c t i o n of c o s t s i n t h e p r o v i s i o n of i n f r a s t r u c t u r e f o r r e s i d e n t i a l d e v e l o p m e n t t h r o u g h s u b i d i v i s i o n c o n t r o l s . W h i l e many p l a n n e r s r e c o g n i z e d t h a t some a s p e c t s of h o u s i n g p r o b l e m s r e s u l t e d f r o m " t h e e v i l f r u i t of l a i s s e z - f a i r e p o l i c y o f town b u i l d i n g " as J . D. C r a i g ( l 9 2 8 , p.339) a r g u e d , t h e a c t u a l p l a n n i n g measures p u t i n p l a c e were q u i t e i n s i g n i f i c a n t . Much e f f o r t by t h e p l a n n i n g p r o f e s s i o n d u r i n g t h i s 36 d e c a d e was d i r e c t e d not t o w a r d s t h e government p r o v i s i o n of h o u s i n g , but t o w a r d s t h e i n s t i t u t i o n a l i z a t i o n of c i t y p l a n n i n g as a permanent, on g o i n g f u n c t i o n of government. P l a n n e r s a d v o c a t e d t h e p r e p a r a t i o n of c i t y p l a n s and t h e e s t a b l i s h m e n t of s u b d i v i s i o n c o n t r o l s and z o n i n g b y l a w s as i n s t r u m e n t s f o r t h e s o l u t i o n of u r b a n p r o b l e m s . D u r i n g t h e 1920's t h e c e n t r e p i e c e of m u n i c i p a l p l a n n i n g was e n v i s i o n e d by t h e p l a n n i n g p r o f e s s i o n as t h e m a s t e r p l a n and t h e z o n i n g b y l a w . However, o n l y two major c i t y p l a n s and a c c o m p a n y i n g z o n i n g b y l a w s were p r e p a r e d d u r i n g t h e 1920's, t h e K i t c h e n e r , O n t a r i o ( 1 9 2 4 ) and V a n c o u v e r , B r i t i s h C o l u m b i a ( 1 9 2 8 ) p l a n s . N e i t h e r of t h e s e c a l l e d f o r t h e d i r e c t i n v o l v e m e n t o f government i n t h e p r o v i s i o n of h o u s i n g . In t h e s e p l a n s t h e p r o v i s i o n of h o u s i n g was seen as t h e r o l e of t h e p r i v a t e s e c t o r , w h i l e t h e r o l e of t h e p u b l i c s e c t o r was t o r e g u l a t e the l o c a t i o n , s i t i n g and d i m e n s i o n s of h o u s i n g . ( S e y m o u r , 1924, pp. 125-130; C i t y of V a n c o u v e r , 1928, pp. 233-235) The V a n c o u v e r g e n e r a l p l a n , f o r example e x p l a i n e d i t s r o l e i n h o u s i n g i n t h e f o l l o w i n g t e r m s : one of t h e p r i m a r y o b j e c t i v e s of a p l a n i s u n d o u b t e d l y t o p r o v i d e s u i t a b l e a r e a s f o r t h e e r e c t i o n of h o u s e s f o r t h o s e who a r e e ngaged i n t h e i n d u s t r i a l o r c o m m e r c i a l l i f e o f t h e c i t y . ( C i t y of V a n c o u v e r , 1928, p. 233 ) M o r e o v e r , t h e r o l e of government i n h o u s i n g was, a c c o r d i n g t o t h e V a n c o u v e r p l a n , t h e p r o v i s i o n of i n f r a s t r u c t u r e f o r new r e s i d e n t i a l a r e a s . ( I b i d , p. 233) The p l a n d i d , n e v e r t h e l e s s , r e c o g n i z e t h a t h o u s i n g p r o b l e m s e x i s t e d , but 37 t h a t t h e y were beyond t h e scope of t h e p l a n . The h o u s i n g p r o b l e m , however, as o u t l i n e d by some, can o n l y be s o l v e d when t h e c i t y or s t a t e i s i n t h e p o s i t i o n t o g u a r a n t e e t o e v e r y i n d i v i d u a l h o u s e h o l d e r a wage s u f f i c i e n t f o r t h e payment o f a r e a s o n a l b l e r e n t . W h i l e town p l a n n i n g c a n go f a r t o c r e a t e and m a i n t a i n d e s i r e a b l e h o u s i n g c o n d i t i o n s , i t i s beyond i t s s c o p e . . . t o c o n c e r n i t s e l f w i t h t h i s v e r y i m p o r t a n t e c onomic p r o b l e m . ( I b i d , p. 234) Town p l a n n e r s a p p e a r e d t o a d v o c a t e some measure of s o c i a l c h a n g e s s u c h as t h e i m p o s i t i o n of o b l i g a t i o n s on u r b a n l a n d o w n e r s t h r o u g h l a n d use r e g u l a t i o n . However, when i t came t o i m p l e m e n t i n g m u n i c i p a l p l a n n i n g m e a s u r e s , some p l a n n e r s c o n c e d e d t h a t t h e c i t y m a s t e r p l a n and z o n i n g b y l a w s were, as p o l i c y i n s t r u m e n t s , l i m i t e d i n t h e i r a b i l i t y t o a d d r e s s h o u s i n g p r o b l e m s . 2.6 H o u s i n g P r o b l e m s and t h e t e c h n i c a l f i x One of t h e few p r o m i n e n t p l a n n e r s c o n c e r n e d p r i m a r i l y w i t h h o u s i n g was A. G. D a l z e l l whose a r t i c l e s and p u b l i c a t i o n s a p p e a r e d r e g u l a r l y . D a l z e l l , a C i v i l E n g i n e e r , had been A s s i s t a n t C i t y E n g i n e e r f o r t h e C i t y of V a n c o u v e r , a h o u s i n g r e s e a r c h e r f o r t h e Commission of C o n s e r v a t i o n and a s s i s t a n t t o Thomas Adams i n t h e a d m i n i s t r a t i o n of t h e 1919 f e d e r a l h o u s i n g programme. D a l z e l l c a l l e d f o r more government a c t i o n on h o u s i n g p r o b l e m s and p a i d p a r t i c u l a r a t t e n t i o n t o l a n d s p e c u l a t i o n . A c c o r d i n g t o D a l z e l l , " u n c o n t r o l l e d l a n d s p e c u l a t i o n and t h e u t t e r a b s e n c e of town p l a n n i n g was a t t h e r o o t of t h e p r o b l e m " . ( D a l z e l l , 1927, p. 59) F u r t h e r m o r e , t h e improvement of h o u s i n g c o n d i t i o n s "can 38 o n l y be done when r e s i d e n t i a l d e v e l o p m e n t i s c a r e f u l l y p l a n n e d and l i k e w i s e c a r e f u l l y c o n t r o l l e d " . ( D a l z e l l , 1926, p. 29) C a r e f u l . p l a n n i n g would, D a l z e l l w r o t e , l o w e r t h e c o s t of l a n d f o r h o u s i n g and would " e l i m i n a t e as f a r as p o s s i b l e t h e s p e c u l a t i o n i n h o m e b u i l d i n g " . ( D a l z e l l , 1928, p. 38) D a l z e l l a r g u e d t h a t a number of u r b a n l a n d p r o b l e m s had l e d t o the h i g h c o s t of h o u s i n g : 1) l a n d o w n e r s k e e p i n g l a n d out of t h e market u n t i l t h e h i g h e s t p r i c e s c o u l d be o b t a i n e d ; 2) the h i g h p r i c e of l a n d r e s u l t i n g f r o m o v e r l y i n t e n s i v e r e s i d e n t i a l d e v e l o p m e n t , narrow s t r e e t s and s m a l l b u i l d i n g p l o t s ; 3) the h i g h p r i c e of l a n d making i t d i f f i c u l t f o r t h e i n d u s t r i a l worker t o f i n a n c e h i s h o u s e . ( D a l z e l l , 1926, p. 24) H i s s o l u t i o n t o t h e s e p r o b l e m s were: 1) p l a c i n g l a r g e a r e a s of l a n d on t h e market w e l l a d v a nce of d e v e l o p m e n t ; 2) w i d e n i n g s t r e e t s and r e q u i r i n g l a r g e r b u i l d i n g l o t s ; and 3) i n s t i t u t i n g e a s i e r f i n a n c i n g t e r m s . ( D a l z e l l , 1926, p. 24) As an e n g i n e e r D a l z e l l t e n d e d t o see s o l u t i o n s t o h o u s i n g p r o b l e m s as t e c h n i c a l r a t h e r t h a n s o c i a l q u e s t i o n s . F o r example, i n 1927 he a r g u e d t h a t " H o u s i n g f o r p o o r p e o p l e i s n ot a h i t and m i s s a f f a i r , d e p e n d a n t on t h e p r i c e of l a n d and t h e p r o f i t e e r i n g p r o s p e c t s of t h e j e r r y b u i l d e r , but i s a p r o b l e m of s c i e n t i f i c h u m a n i s m " . ( D a l z e l l , 1927, p. 11,60) D a l z e l l and o t h e r s v i e w e d t h e u r b a n p r o f e s s i o n s as managers of s o c i a l p r o b l e m s , r a t h e r t h a n as p r o f e s s i o n a l s who m i g h t c h a l l e n g e t h e f u n d a m e n t a l i n s t i t u t i o n s of s o c i e t y . 39 They v i e w e d u r b a n p r o b l e m s i n p u r e l y t e c h n i c a l t e r m s , s e e k i n g s o l u t i o n s i n v o l v i n g r e g u l a t i o n and b e t t e r d e s i g n , r a t h e r t h a n fundamental- s o c i a l c h a n g e . However, a t t i m e s t h e s e a d v o c a t e s o f government a c t i o n on h o u s i n g p r o b l e m s d i d make some r e f e r e n c e t o p r o b l e m s i n h e r e n t i n t h e urb a n l a n d m a r k e t . F o r example, i n a 1925 a r t i c l e t h e e d i t o r of t h e J o u r n a l , Town P l a n n i n g I n s t i t u t e  of Canada, A l f r e d B u c k l e y , a d v o c a t e d t h e community o w n e r s h i p o f l a n d and t h e b u i l d i n g of Garden C i t i e s as t h e s o l u t i o n t o h o u s i n g p r o b l e m s . He i d e n t i f i e d t h e u r b a n l a n d p r o b l e m a s t h e p r i v a t e a p p r o p r i a t i o n o f l a n d v a l u e s t h a t were p u b l i c l y c r e a t e d . The mopping up o f community c r e a t e d l a n d v a l u e s by p r i v a t e p e r s o n s i s t h e c a u s e o f t h e p r e s e n t impasse i n p r o v i d i n g d e c e n t l i v i n g c o n d i t i o n s f o r low s a l a r i e d o f f i c e w o r k e r s and low p a i d wage e a r n e r s . ( B u c k l e y , 1925, p. 5) In a s i m i l a r v e i n , N o u l a n Couchon, a p r o m i n e n t Ottawa b a s e d town p l a n n e r and e n g i n e e r , a r g u e d t h a t t h e r e was an undue e m p h a s i s on t h e r i g h t s of p r o p e r t y and t h e i n t e r e s t s of l a n d o w n e r s . The f e t i s h of ' f e e s i m p l e ' has been i d o l i z e d on t h i s c o n t i n e n t a s an i n s t r u m e n t o f l i b e r t y and as an a d v e r t i s m e n t f o r e m i g r a n t s s e e k i n g r e l i e f from t h e ' d o i n g s ' o f i n d i v i d u a l ' l a n d l o r d i s m ' i n E u r o p e . They a r e b e i n g c o a x e d by t h e i r o n y o f f a t e t o come and l i k e w i s e 'do' and 'be done' u l t i m a t e l y . (Couchon (1927) p. 38) . Thus, f o r Couchon t h e v e r y s y s t e m o f l a n d o w n e r s h i p had i n h e r e n t p r o b l e m s t h a t would u l t i m a t e l y c r e a t e more p r o b l e m s t h a n i t would s o l v e . 40 One of t h e few e x p e r i m e n t s i n p u b l i c l a n d p o l i c y i n v o l v e d t h e U n i v e r s i t y Endowment Grounds i n V a n c o u v e r . D e v e l o p e d d u r i n g t h e 1920's, many of t h e l o t s were s o l d t o l a n d o w n e r s on a l e a s e h o l d b a s i s . A p a p e r p r e s e n t e d a t t h e 1927 c o n f e r e n c e of t h e Town P l a n n i n g I n s t i t u t e of Canada e x p l a i n e d t h e d e v e l o p m e n t i n t h i s way: The t y r a n n y and i n j u s t i c e of l a n d p r o f i t e e r i n g may need t o be met by t h e a c q u i s i t i o n of l a n d i n l a r g e a r e a s a t a g r i c u l t u r a l p r i c e s w i t h l e a s e h o l d t e n u r e so t h a t t h e s a v i n g s can go i n t o b e t t e r b u i l d i n g s and some form of r e a s o n a b l e c r e d i t so t h a t p oor f a m i l i e s may g r a d u a l l y pay w i t h o u t t h e c r u s h i n g c o s t of l a n d . ( " N o t e s on th e 7 t h A n n u a l C o n v e n t i o n of t h e Town P l a n n i n g I n s t i t u t e of Canada", 1927, p. 118) N e v e r t h e l e s s , t h e m a j o r i t y of h o u s i n g t h a t was d e v e l o p e d on th e s i t e went t o m i d d l e c l a s s home b u y e r s . As B u c k l e y t o l d t h e 1927 c o n f e r e n c e , " T h i s scheme does n o t t o u c h and c a n n o t t o u c h some of t h e major p r o b l e m s of town p l a n n i n g . . . N o r does i t t o u c h t h e g r e a t p r o b l e m of p r o v i d i n g h o u s i n g accommodation f o r low wage e a r n e r s . " ("Luncheon a t t h e U n i v e r s i t y Endownment G r o u n d s " , 1927, pp. 145-147) The 1927 Town P l a n n i n g C o n f e r e n c e a l s o had a s e s s i o n w h i c h a d d r e s s e d t h e p r o b l e m s of h o u s i n g . T r a n s c r i p t s o f t h e s e s s i o n i n d i c a t e t h a t t h e r e was l i t t l e o r no d i s c u s s i o n a b o u t t h e p r o b l e m s o f l a n d s p e c u l a t i o n . The u r b a n l a n d p r o b l e m was d e f i n e d i n t e c h n i c a l t e r m s where b e t t e r c o n t r o l s , i m p r oved d e s i g n and t h e i n v o l v e m e n t of ' s c i e n t i f i c ' men would s o l v e t h e l a n d p r o b l e m . T r a n s c r i p t s o f t h e workshop i n d i c a t e t h a t most o f i t was s p e n t on t h e t o p i c of h o u s i n g d e s i g n r a t h e r t h a n l a n d r e f o r m . B u c k e l y , 41 f o r example, l i m i t e d h i s s u g g e s t i o n s f o r r e f o r m t o t h e i n v o l v e m e n t o f town p l a n n e r s i n t h e p r o v i s i o n of h o u s i n g . The o r t h o d o x a r g u e d t h a t i t ( t h e p r o v i s i o n of h o u s i n g ) would be b e t t e r managed by p r i v a t e e n t e r p r i s e , but i t was not managed a t a l l u n t i l i t was put i n t o t h e hands of s c i e n t i f i c town p l a n n e r s of i n c o r r u p t i b l e i n t e g r i t y and t r e a t m e n t as a s c i e n t i f i c p r o b l e m , j u s t as sewer and water s u p p l y would b e . ( " N o t e s on t h e 7 t h a n n u a l c o n v e n t i o n of t h e Town P l a n n i n g I n s t i t u t e of Canada," 1927, p. 141) Most p l a n n e r s , t h e r e f o r e , a p p e a r t o have v i e w e d l a n d and h o u s i n g as e s s e n t i a l l y t e c h n i c a l i s s u e s . 2.7 C o n c l u s i o n Few a d v o c a t e s of l a n d p o l i c y i n t h i s p e r i o d c h a l l e n g e d t h e t r e a t m e n t of l a n d as p r i v a t e l y h e l d commodity. However, t h e u n r e g u l a t e d d e v e l o p m e n t of u r b a n a r e a s and t h e w i d e s p r e a d l a n d s p e c u l a t i o n of t h e pre-war p e r i o d and t h e 1920's p o s e d a number of p r o b l e m s . Many m u n i c i p a l i t i e s c a r r i e d heavy d e b t s due t o t h e h i g h c o s t of s e r v i c i n g t h e s c a t t e r e d l o c a t i o n of s u b u r b a n r e s i d e n t i a l s u b i d i v i s i o n . A l s o , h a p h a z a r d and n o n - c o n f o r m i n g l a n d use p a t t e r n s i n t h e b u i l t a r e a s o f c i t i e s o f t e n r e d u c e d p r o p e r t y v a l u e s . The p r i m a c y o f u r b a n l a n d m a r k e t s and p r i v a t e l a n d o w n e r s h i p , however, were r a r e l y c h a l l e n g e d . The l a n d s p e c u l a t o r , n o t t h e l a n d m a r k e t , was i d e n t i f i e d as t h e v i l l a i n r e s p o n s i b l e f o r many of t h e s e u r b a n l a n d p r o b l e m s . In r e s p o n s e t o t h e p r o b l e m s of u n r e g u l a t e d u r b a n d e v e l o p m e n t and l a n d s p e c u l a t i o n a d v o c a t e s of l a n d p o l i c y c a l l e d f o r measures w h i c h r e g u l a t e d t h e use of l a n d . 42 Government p o l i c i e s p r o p o s e d d u r i n g t h i s p e r i o d g e n e r a l l y f i t t e d i n t o one of t h r e e c a t e g o r i e s . F i r s t , t h e e a r l y town p l a n n e r s e m p h a s i z e d t h e need f o r a ' s c i e n t i f i c ' a p p r o a c h t o l a n d use p l a n n i n g . Many a r g u e d t h a t l a n d use z o n i n g and s u b d i v i s i o n c o n t r o l s would c u r t a i l l a n d s p e c u l a t i o n e s p e c i a l l y on t h e f r i n g e of u r b a n a r e a s . Second, a s m a l l e r number c a l l e d f o r u n e a r n e d i n c r e m e n t t a x e s t o be imposed when l a n d was c o n v e r t e d f r o m a g r i c u l t u r a l t o u r b a n u s e s . I t was a r g u e d t h a t b e c a u s e l a n d v a l u e i n c r e a s e s were g e n e r a t e d by g e n e r a l g r o w t h and p u b l i c i n v e s t m e n t , l o c a l g o v e r n m e n t s s h o u l d b e n e f i t from t h e i n c r e a s e d v a l u e s . T h i r d , a s m a l l g r o u p of i n d i v i d u a l s and p l a n n e r s c a l l e d f o r government p r o v i s i o n of h o u s i n g f o r t h o s e who c o u l d not a f f o r d a d e q u a t e h o u s i n g i n t h e p r i v a t e m a r k e t . None of t h e s e m e asures s o u g h t t o c o m p l e t e l y remove h o u s i n g from dependance on t h e l a n d m arket f o r r e s i d e n t i a l l a n d . Any c h a l l e n g e t o t h e t r e a t m e n t of l a n d as a p r i v a t e l y h e l d commodity was c o n s t r a i n e d by t h e p r e v a i l i n g l i b e r a l i d e o l o g y of f r e e m a r k e t s and p r o p e r t y r i g h t s and t h e s t r o n g d e s i r e of most w o r k i n g c l a s s f a m i l i e s t o own t h e i r own homes. A l s o , t h e r e l a t i v e l y s m a l l p l a n n i n g p r o f e s s i o n o n l y began t o e s t a b l i s h i t s e l f i n t h e 1920's and d u r i n g t h a t p e r i o d t h e p a c e o f u r b a n g r o w t h , and c o n s e q u e n t l y , u r b a n l a n d p r o b l e m s were not as g r e a t as t h e y had been i n t h e pre-war wars. As a r e s u l t of t h e s e f a c t o r s , t h e p r o v i s i o n of h o u s i n g r e m a i n e d a p u r e l y p r i v a t e s e c t o r a c t i v i t y . 43 CHAPTER THREE WHAT LAND PROBLEM? THE DEPRESSION YEARS: 1930-1939 H o u s i n g p r o b l e m s r e s u r f a c e d as a major p u b l i c c o n c e r n d u r i n g t h e d e p r e s s i o n but t h e c o n t e n t and n a t u r e of t h e d e b a t e was q u i t e d i f f e r e n t from t h a t o f e a r l i e r d e c a d e s . L a n d s p e c u l a t i o n was no l o n g e r an i s s u e . T h i s r e f l e c t e d t h e d e p r e s s e d r e a l e s t a t e and h o u s i n g m a r k e t s . Economic a c t i v i t y d e c r e a s e d m a r k e d l y . The n a t i o n ' s economy, as measured by t h e a n n u a l G r o s s N a t i o n a l E x p e n d i t u r e , d r o p p e d 38.7% from 1930 t o 1 9 3 5 . ( U r q u h a r t and B u c k l e y , 1965, p. 131) D e c r e a s e d economic a c t i v i t y a l s o r e s u l t e d i n d e c l i n i n g house v a l u e s . In Canada's major c i t i e s , from 1931-1941, t h e v a l u e of o w n e r - o c c u p i e d homes d e c l i n e d by an a v e r a g e of 33%. H o u s i n g c o m p l e t i o n s d e c l i n e d 65% f r o m a h i g h of 64,700 i n 1929 t o a 1930's low of 21,900 i n 1933. The i n v e s t m e n t i n n o n - f a r m r e s i d e n t i a l c o n s t r u c t i o n i n 1933 was o n l y 28% o f t h e i n v e s t m e n t i n n o n - f a r m h o u s i n g i n 1929. Unemployment i n t h e b u i l d i n g t r a d e s i n c r e a s e d from 10.4% i n 1928 t o 67.1% i n 1 9 3 3 . ( F i r e s t o n e , 1951, pp. 57, 78) W i t h h i g h unemployment, incomes a l s o d r o p p e d w h i c h made i t d i f f i c u l t f o r many f a m i l i e s t o o b t a i n a d e q u a t e h o u s i n g . ( T h o m p s o n , 1983, p. 16) 44 T h e s e c o n d i t i o n s f o c u s e d a t t e n t i o n on t h e need f o r government a c t i o n . The i n i t i a l r e s p o n s e came from m u n i c i p a l g o v e r n m e n t s who were r e s p o n s b i l e f o r d i s t r i b u t i n g r e l i e f t o t h e p o o r and from p r o v i n c i a l g o v e r n m e n t s w h i c h were, under the BNA a c t , r e s p o n s i b l e f o r h o u s i n g . The f i r s t government to p a s s h o u s i n g l e g i s l a t i o n d u r i n g t h e 1930's was t h e P r o v i n c e of Nova S c o t i a . Due t o t h e l o b b y i n g e f f o r t s of t h e B e t t e r H o u s i n g League, B o a r d s of T r a d e and o t h e r c i v i c g r o u p s , t h e p r o v i n c e of Nova S c o t i a a d o p t e d a H o u s i n g A c t i n 1932. The f o l l o w i n g y e a r t h e W i n n i p e g Department of H e a l t h u n d e r t o o k a h o u s i n g s u r v e y of c e r t a i n d i s t r i c t s o f t h e c i t y . In 1934 t h e r e was even more a c t i v i t y r e l a t i n g t o h o u s i n g p r o b l e m s . In T o r o n t o , t h e L i e u t e n a n t . - G o v e r n o r ' s Committee on H o u s i n g C o n d i t i o n s i n T o r o n t o was e s t a b l i s h e d t o s t u d y the s l u m h o u s i n g p r o b l e m recommending a programme of slum c l e a r a n c e and s u b s i d i z e d r e n t a l h o u s i n g . The M o n t r e a l B o a r d of T r a d e and t h e M o n t r e a l C i v i c Improvment League p u b l i s h e d a R e p o r t on Slum C l e a r a n c e and Low R e n t a l H o u s i n g w h i c h a l s o recommended slum c l e a r a n c e and t h e p r o v i s i o n of low r e n t a l h o u s i n g . The O n t a r i o p r o v i n c i a l l e g i s l a t u r e p a s s e d a unaminous r e s o l u t i o n e n d o r s i n g t h e p r i n c i p l e s of slum c l e a r a n c e . In Ottawa, t h e N a t i o n a l C o n s t r u c t i o n C o u n c i l e s t a b l i s h e d a s u b - c o m m i t t e e on h o u s i n g as p a r t o f i t s Ottawa R e g i o n a l C o m m i t t e e . ( H u l c h a n s k i , 1978, pp. 15) However, a c t u a l government i n v o l v e m e n t i n h o u s i n g beyond s t u d y i n g t h e p r o b l e m and p a s s i n g some l e g i s l a t i o n was a b s e n t u n t i l t h e f e d e r a l government, i n 1935, i n t r o d u c e d t h e D o m i n i o n H o u s i n g 45 A c t . FIGURE 2 Dwelling Units Completed C a n a d a , 1 9 3 0 - 3 9 I L A L A A A \ \ \ \ — 1 3 3 0 1 3 3 2 1 3 3 4 1 9 3 6 ! 3 3 8 • Total o Urban Source: Appendix B of th i s report 47 3.1 The S p e c i a l Committee on H o u s i n g and t h e D o m i n i o n  H o u s i n g A c t P r i o r t o t h e a d o p t i o n of t h e D o m i n i o n H o u s i n g A c t , t h e f e d e r a l P a r l i a m e n t e s t a b l i s h e d i n F e b r u a r y 1935 a S p e c i a l Committee on H o u s i n g . I t s terms of r e f e r e n c e were " t o i n v e s t i g a t e and r e p o r t upon t h e i n a u g a r a t i o n of a n a t i o n a l p o l i c y o f house b u i l d i n g . . . i n o r d e r t o p r o v i d e employment t h r o u g h o u t Canada... h a v i n g r e g a r d t o t h e c o s t o f such a p o l i c y and t h e burdeon imposed upon t h e t r e a s u r y . " (Canada, House of Commons, 1935, p. i i i ) Over a p e r i o d of a month and a h a l f t h e committee c a l l e d w i t n e s s e s from a c r o s s Canada i n c l u d i n g many c i t y p l a n n e r s and o f f i c i a l s from t h e p r i v a t e s e c t o r . No i n t e r v i e w s were c o n d u c t e d w i t h g r o u p s s u c h as l a b o u r o r p r o g r e s s i v e p o l i t i c a l o r g a n i z a t i o n s . The c o m m i t t e e ' s d i s c u s s i o n of h o u s i n g p r o b l e m s i n d i c a t e d t h a t h o u s i n g , d u r i n g t h i s p e r i o d , came t o be v i e w e d as a p r o b l e m g e n e r a l l y s e p a r a t e from l a n d p r o b l e m s . F o r example, the urban l a n d market and l a n d s p e c u l a t i o n were s e l d o m r a i s e d as p r o b l e m s f o r t h e p r o v i s i o n o f h o u s i n g . N o u l a n Couchon, t h e n c h a i r m a n o f t h e Ottawa P l a n n i n g C o m m i s s i o n , was c a l l e d a s t h e f i r s t w i t n e s s and re m a i n e d w i t h t h e com m i t t e e t h r o u g h o u t t h e h e a r i n g s a s a c o n s u l t a n t . Couchon's t e s t i m o n y , l i k e t h a t of a l l w i t n e s s e s , made l i t t l e o r no r e f e r e n c e t o t h e l a n d component i n t h e p r o v i s i o n of h o u s i n g . The u r b a n l a n d p r o b l e m was d e f i n e d a s a p r o b l e m of c o n g e s t i o n t h a t c o u l d be a m e l i o r a t e d w i t h t h e i m p l e m e n t a t i o n of government l a n d use r e g u l a t i o n . As Couchon t o l d t h e 48 commi t t e e : The c r u x of t h e p r o b l e m o f h o u s i n g and t h e c r u x of t h e p r o b l e m i n town p l a n n i n g i s c o n g e s t i o n ; t h a t i s c o n g e s t i o n of t r a f f i c w hich a f f e c t s . . . t h e a c c e s s i b i l i t y t o homes. ( I b i d , p. 7) A c c o r d i n g t o Couchon the s o l u t i o n t o t h e s e l a n d p r o b l e m s was s u b u r b a n i z a t i o n and l o w e r i n g l a n d p r i c e s t h r o u g h g r e a t e r c o m p e t i t i o n i n t h e s a l e of r e s i d e n t i a l l a n d . C o m p e t i t i o n , under t h e p r e s e n t d i s p e n s a t i o n of p r i v a t e l a n d o w n e r s h i p o f p r o p e r t y i s t h e o n l y way you can s e c u r e c h e a p l a n d f o r t h e p u r p o s e of h o u s i n g . ( I b i d , p. 7) The n e x t m a j o r w i t n e s s , P. E. Nobbs, a town p l a n n e r f r o m M o n t r e a l , c o n t i n u e d w i t h t h e same theme of s u b u r b a n i z a t i o n and c h e a p l a n d a s b e i n g t h e b e s t s o l u t i o n t o h o u s i n g p r o b l e m s . Whenever p o s s i b l e you have t o move a f a m i l y on t o o u t e r l a n d . You c a n n o t o n l y t h e n g i v e them more l a n d , but more a m e n i t y t h a t way; and i t i s c h e a p e r t o do i t . ( S p e c i a l Committee on H o u s i n g , 1935, no. 2, p. 48) The c o m m i t t e e , however, was c o n c e r n e d o v e r t h e p o t e n t i a l f o r d e c r e a s e d l a n d v a l u e s i n t h e c e n t r a l c i t y i f t h e s u b u r b a n s o l u t i o n was f o l l o w e d . The F. R i n f r e t , a L i b e r a l and member of t h e Committee a s k e d : how a r e we g o i n g t o compensate t h e house owners i n s i d e t h e c i t y , i n t h e c e n t r a l p a r t s of t h e c i t y , w h i c h p r o p e r t i e s become v a l u e l e s s i f new q u a r t e r s f o r t h e workingman a r e p r o v i d e d i n t h e s u b u r b s . T h a t has a l w a y s been one o f t h e most v i v i d p r o b l e m s o f t h e h o u s i n g p r o b l e m . ( I b i d , p. 50) Most c o m m i t t e e members were c o n c e r n e d t h a t government i n t e r v e n t i o n i n h o u s i n g and l a n d would harm t h e f u n c t i o n i n g o f m a r k e t . 49 One of t h e few r e f e r e n c e s t o l a n d v a l u e s was made i n t e s t i m o n y by W. L. S o m e r v i l l e , an a r c h i t e c t and C h a i r m a n of t h e H o u s i n g Committee o f t h e N a t i o n a l C o n s t r u c t i o n C o u n c i l . He t o l d t h e c o m m i t t e e t h a t much of t h e e x i s t i n g h o u s i n g a v a i l a b l e a t low r e n t s was on l a n d t h a t was d e s t i n e d f o r c o m m e r c i a l p u r p o s e s . Owners of s u c h p r o p e r t y , a c c o r d i n g t o S o m e r v i l l e , c o u l d not be e x p e c t e d t o r e n t s u c h h o u s i n g i f o p p o r t u n i t i e s f o r a l t e r n a t i v e u s e s o f t h e l a n d gave the l a n d o w n e r an o p p o r t u n i t y t o s e l l t h e l a n d a t a g r e a t e r p r i c e t h a n , h e had p a i d f o r i t . ( S p e c i a l Committee on H o u s i n g , 1935, no. 4, p. 95-96) E r n s t Kahn, manager o f t h e N a t i o n a l H o u s i n g E x p e r i m e n t i n New York C i t y , t o l d t h e c ommitte t h a t one s h o u l d l o o k f o r some compromise w i t h r e a l e s t a t e i n t e r e s t s . He s u g g e s t e d t h a t s u b s i d i e s f o r l o a n s and i n t e r e s t r a t e s was l i k e l y t h e b e s t a p p r o a c h f o r government h o u s i n g p o l i c i e s aimed a t m i d d l e income h o u s e h o l d s . ( S p e c i a l Committee on H o u s i n g , 1935, no. 8, p. 243) Low income h o u s i n g , a c c o r d i n g t o Kahn, c o u l d n o t be p r o v i d e d by t h e p r i v a t e s e c t o r . T h e r e i s one p o i n t of compromise between r e a l e s t a t e and low c o s t h o u s i n g , low c o s t h o u s i n g s h o u l d be l e f t t o t h o s e i n some s e m i - o f f i c i a l c a p a c i t y , o r l i m i t e d d i v i d e n d c o m p a n i e s , b e c a u s e i t i s n o t a f i e l d f o r p r i v a t e e n t e r p r i s e . (Canada, House of Commons, 1935, p. 273) D e s p i t e t h e c o m m i t t e e ' s i n t e r e s t i n low r e n t a l h o u s i n g and slum c l e a r a n c e , D r . W. C. C l a r k , D e p u t y - M i n i s t e r of F i n a n c e , warned t h e c o m m i t t e e n o t t o c o n s i d e r programmes 50 t h a t would make o v e r l y g r e a t demands on t h e p u b l i c p u r s e . He re m i n d e d them t h a t t h e p r i m a r y c o n c e r n o f t h e f e d e r a l government was p r o v i d i n g employment t h r o u g h h o u s i n g c o n s t r u c t i o n , r a t h e r t h a n s o l v i n g t h e p r o b l e m s of h o u s i n g . I t would be unwise t o make any h a s t y committments t o t h e most d i f f i c u l t and t h e most c o m p l i c a t e d a s p e c t s of h o u s i n g , f o r i n s t a n c e , t h e p r o b l e m s of slum c l e a r a n c e . . . W e s h o u l d c o n c e n t r a t e e s s e n t i a l l y on t h e immediate emergency p r o b l e m of u s i n g h o u s i n g as a s t i m u l a n t t o b u s i n e s s r e c o v e r y . (Canada, House o f Commons, 1935, p. 354) The f i n a l r e p o r t t h a t t h e committe f o r w a r d e d t o p a r l i a m e n t i n A p r i l 1935 made no m e n t i o n o f u r b a n l a n d p o l i c y . I t a r g u e d t h a t h o u s i n g was e s s e n t i a l l y an incomes p r o b l e m and t h a t h o u s i n g was, i n most c a s e s , t o be t h e r e s p o n s i b i l i t y of t h e i n d i v i d u a l . H o u s i n g i s p r i m a r i l y t h e d i r e c t r e s p o n s i b i l i t y o f t h e i n d i v i d u a l c o -o p e r a t i n g w i t h t h e l o c a l a u t h o r i t y . . . The a c u t e n e s s of t h e h o u s i n g p r o b l e m l e s s e n s t o th e d e g r e e t h a t t h e wage s c a l e s of low wage e a r n e r s i s i m p r o v e d . ( S p e c i a l Committee on H o u s i n g , 1935, F i n a l r e p o r t , p. 6) In June 1935 S i r George P e r l e y , M i n i s t e r w i t h o u t P o r t f o l i o i n t h e Bennet government, i n t r o d u c e d t h e D o m i n i o n H o u s i n g B i l l . He e x p l a i n e d t h a t t h e b i l l was i n t r o d u c e d " f o r th e p u r p o s e of g i v i n g e n c o u r a g e m e n t and a s s i s t a n c e i n t h e b u i l d i n g of new h o u s e s , p a r t i c u l a r l y f o r t h o s e w i t h low wages". (House of Commons D e b a t e s , 1935 S e s s i o n , p. 3909) The government had r e c o g n i z e d t h a t many f a m i l i e s c o u l d n ot a l w a y s o b t a i n s u i t a b l e h o u s i n g w i t h o u t p u b l i c a s s i s t a n c e . The b i l l p r o v i d e d f o r f e d e r a l m o r t g a g e s c o v e r i n g 20% o f t h e 51 v a l u e o f t h e l a n d and house. The p r i v a t e s e c t o r was e x p e c t e d t o l o a n 60% of i t s v a l u e w h i l e t h e p r o s p e c t i v e h o u s e h o l d would p r o v i d e a downpayment c o v e r i n g t h e r e m a i n i n g 20 p e r c e n t . T h e r e were no p r o v i s i o n s f o r slum c l e a r a n c e as had been a d v o c a t e d i n many of t h e h o u s i n g s t u d i e s p r e p a r e d a c r o s s t h e c o u n t r y . The D o m i n i o n H o u s i n g A c t p r o v i s i o n s f o r f e d e r a l l o a n s a l s o a p p l i e d t o low r e n t a l p r o j e c t s u n d e r t a k e n by l o c a l a u t h o r i t i e s and p r o v i n c i a l g o v e r n m e n t s . In t h e House d e b a t e s most d i s c u s s i o n f o c u s e d on t h e p r o p o s e d r a t e of i n t e r e s t f o r t h e h o u s i n g l o a n s o r t h e s i z e o f t h e a p p r o p r i a t i o n f o r t h e p r o p o s e d l e g i s l a t i o n . O n l y W i l l i a m I r v i n e , CCF Member of P a r l i a m e n t f o r W e t a s k i w i n , A l b e r t a , a t t e m p t e d t o f o c u s t h e d e b a t e on b r o a d e r i s s u e s . The manner i n wh i c h t h i s b i l l p r o v i d e s f o r a s s i s t a n c e where t h e c a p i t a l i s t s y s t e m has f a l l e n down i s on an e n t i r e l y c a p i t a l i s t i c b a s i s . . . c a p i t a l i s m has f a l l e n down i n t h e b u i l d i n g of houses j u s t a s i t has f a l l e n down i n a l m o s t e v e r y o t h e r u n d e r t a k i n g o f human s e r v i c e . ( House o f Commons D e b a t e s , 1935 S e s s i o n , p. 39.29J..... W i t h l i t t l e c r i t i c i s m of t h e c e n t r a l t h r u s t of t h i s b i l l , i t s p r i n c i p a l o b j e c t i v e r e m a i n e d t o u n d e r w r i t e t h e f i n a n c i n g of h o u s i n g c o n s t r u c t i o n and i n c r e a s i n g employment i n t h e c o n s t r u c t i o n s e c t o r . 3.2 The 1938 N a t i o n a l H o u s i n g A c t and t h e G r a u e r R e p o r t In 1938 t h e f e d e r a l government i n t r o d u c e d a r e p l a c e m e n t f o r t h e D o m i n i o n H o u s i n g A c t , t h e f i r s t N a t i o n a l H o u s i n g A c t . In e x p l a i n i n g t h e p r o v i s i o n s o f t h e b i l l t o t h e 52 p a r l i a m e n t , t h e M i n i s t e r of F i n a n c e , C h a r l e s A. D u n n i n g , s a i d : t h e p u r p o s e b e h i n d t h e measure i s more t h a t of h e l p i n g t h e man w i t h s m a l l e q u i t y t o o b t a i n h i s o b j e c t i v e of owning h i s own home than t h a t of m e r e l y r e d u c i n g i n t e r e s t s r a t e s t o t h o s e who have s u b s t a n t i a l e q u i t i e s . (House of Commons D e b a t e s , 1938 S e s s i o n , p. 39701 The e s s e n t i a l components of t h e l e g i s l a t i o n were t h e same as t h o s e i n t h e 1935 l e g i s l a t i o n . They i n c l u d e d t h e expanded c o v e r a g e of mortgage l e n d i n g and l o a n s f o r low income h o u s i n g t o l i m i t e d d i v i d e n d c o r p o r a t i o n s and m u n i c i p a l h o u s i n g a u t h o r i t i e s . D u r i n g t h e 1938 house d e b a t e s l i t t l e m e n t i o n was made of l a n d p o l i c y . The t o p i c of l a n d was o n l y b r o a c h e d by D enton Massey, a C o n s e r v a t i v e M.P. f o r Greenwood who s u g g e s t e d t h a t t h e f e d e r a l government l o a n money t o m u n i c i p a l i t i e s t o e s t a b l i s h l a n d banks f o r t h e p u r p o s e of a s s i s t i n g i n d i v i d u a l s who need l o t s f o r h o u s i n g . D u n n i n g r e p l i e d t h a t t h e measure was w o r t h c o n s i d e r i n g , but t h e r e was no f u r t h e r d i s c u s s i o n of l a n d and t h e government t o o k no a c t i o n on t h e l a n d b a n k i n g b a n k i n g p r o p o s a l . In 1939, as p a r t of t h e R o y a l Commission on D o m i n i o n -P r o v i n c i a l R e l a t i o n s ' programme of r e s e a r c h , A. E. G r a u e r , t h e c o m m i s s i o n ' s r e s i d e n t e x p e r t and r e s e a r c h e r , p r e p a r e d a s t u d y on h o u s i n g . P r e v i o u s t o t h i s a p p o i n t m e n t he was D i r e c t o r of t h e U n i v e r s i t y o f T o r o n t o D e p a r t m e n t of S o c i a l S c i e n c e and was, a f t e r h i s t e n u r e a t t h e c o m m i s s i o n , a p p o i n t e d as P r e s i d e n t and C h a i r m a n of t h e B. C. Power 53 C o r p o r a t i o n . H i s r e p o r t on h o u s i n g made s e v e r a l r e f e r e n c e s t o u r b a n l a n d p r o b l e m s , o f w h i c h he p l a c e d most emphasis on l a n d s p e c u l a t i o n . I n f l a t e d l a n d v a l u e s and a s s e s s m e n t v a l u a t i o n s b a s e d upon s p e c u l a t i v e p r i c e s r e s u l t e d i n t h e c o n s t r u c t i o n o f u n s a t i s f a c t o r y d w e l l i n g s i n s u b u r b a n a r e a s . At t h e same t i m e , h i g h r e n t s i n t h e downtown a r e a s meant the c r o w d i n g of two o r more f a m i l i e s i n s i n g l e r e s i d e n c e s as a means of r e d u c i n g e x p e n s e s . ( G r a u e r , 1939, p. 33) T h u s , G r a u e r l i n k e d l a n d s p e c u l a t i o n w i t h not o n l y h i g h l a n d p r i c e s , but he a l s o t r a c e d t h e r e s u l t s of l a n d s p e c u l a t i o n t o s u c h p r o b l e m s as p o o r s u b u r b a n h o u s i n g . G r a u e r a l s o l i n k e d s p e c u l a t i v e a c t i v i t y w i t h t h e f a i l u r e of l o c a l g o v e rnments t o e n f o r c e e f f e c t i v e town p l a n n i n g r e g u l a t i o n s s u c h as s u b d i v i s i o n c o n t r o l s . ( I b i d , p. 33) In h i s r e p o r t he e m p h a s i z e d t h a t h o u s i n g was, a c c o r d i n g t o t h e c o n s t i t u t i o n , a p r o v i n c i a l m a t t e r . P r o v i n c e s , G r a u e r n o t e d , would be e x p e c t e d t o p r o v i d e f o r low c o s t h o u s i n g and t o p l a n t h e g e n e r a l d e v e l o p m e n t of h o u s i n g . A l t h o u g h t h e u r b a n l a n d p r o b l e m was i d e n t i f i e d as one c a u s e f o r h o u s i n g p r o b l e m s , he p l a c e d much e m p h a s i s on town p l a n n i n g and government a s s i s t a n c e i n t h e p r o v i s i o n of low income h o u s i n g r a t h e r t h a n any p r o p o s a l s f o r f u n d a m e n t a l l a n d r e f o r m or any g r e a t l i m i t a t i o n s on p r i v a t e p r o p e r t y r i g h t s . In h i s f i n a l c o n c l u s i o n no m e n t i o n was made of t h e u r b a n l a n d m a r k e t . 54 2.7 The S o c i a l D e m o c r a t s and t h e urb a n l a n d p r o b l e m D u r i n g t h e 1930's t h e r e was i n c r e a s e d i n t e r e s t i n d e m o c r a t i c s o c i a l i s m as w i t n e s s e d by t h e r e l e a s e of t h e R e g i n a M a n i f e s t o i n 1933, t h e o r g a n i z a t i o n of t h e Co-o p e r a t i v e Commonwealth F e d e r a t i o n a s a n a t i o n a l p o l i t i c a l p a r t y and t h e p r o p o s a l s of t h e League f o r S o c i a l R e c o n s t r u c t i o n . The p o l i t i c s of t h e s e g r o u p s were somewhat a k i n t o t h o s e of t h e E n g l i s h F a b i a n s o c i a l i s t s , e s s e n t i a l l y c a l l i n g f o r g r e a t e r government management o f t h e economy. Two p o l i c y a p p r o a c h e s were f u n d a m e n t a l t o t h e s e s o c i a l d e m o c r a t i c p r o p o s a l s . F i r s t , t h e y c a l l e d f o r p u b l i c o w n e r s h i p of c e r t a i n major s e c t o r s s u c h as b a n k i n g and t r a n s p o r t a t i o n . Second, t h e y c a l l e d f o r government ' s o c i a l p l a n n i n g ' w h i c h would r e q u i r e t h e p r i v a t e s e c t o r t o work f o r s o c i a l g o a l s a s w e l l as f o r p r o f i t . ( L e a g u e f o r S o c i a l R e c o n s t r u c t i o n , 1935, p. x v i i i ; C o - o p e r a t i v e Commonwealth  F e d e r a t i o n , 1933, pp. 7) S o c i a l p l a n n i n g was d e f i n e d by t h e LSR as b e i n g : 1) t h e a p p l i c a t i o n of e x p e r t knowldege t o p r o b l e m s ; 2) n o t a f i x e d p l a n , b u t one t h a t i s c o n t i n u a l l y r e v i s e d and u p - d a t e d ; 3) d e l i b e r a t e c o n t r o l o v e r economic d e v e l o p m e n t ; 4) s u p e r v i s i o n by a P l a n n i n g Commission t h a t w ould u n d e r t a k e s u r v e y s , f o r m u l a t e a c o -o r d i n a t e d programme, and e x e c u t e and a d m i n i n s t e r t h a t programme. (League f o r S o c i a l R e c o n s t r u c t i o n , 1935, pp. 218-219) The f i r s t n a t i o n a l CCF c o n v e n t i o n a d o p t e d a m a n i f e s t o 55 c a l l i n g f o r t h e d i s m a n t l i n g of c a p i t a l i s m . One would e x p e c t t h a t p o l i c i e s d e a l i n g w i t h p r i v a t e l a n d o w n e r s h i p would be a key e l e m e n t i n t h e i r programme. However, l a n d i s n e v e r d i r e c t l y a d d r e s s e d i n t h e M a n i f e s t o and i t i s o n l y i n d i r e c t l y r e f e r r e d t o a s one of many n a t u r a l r e s o u r c e s . F o r example, t h e m a n i f e s t o a r g u e s t h a t t h a t t h e w o r k e r s * i n s e c u r i t y and h a r d s h i p : can be removed o n l y i n a p l a n n e d and s o c i a l i z e d economy i n which our n a t i o n a l r e s o u r c e s and t h e p r i n c i p l e means of p r o d u c t i o n and d i s t r i b u t i o n a r e owned, c o n t r o l l e d and o p e r a t e d by t h e p e o p l e . ( C o - o p e r a t i v e Commonwealth F e d e r a t i o n , 1933, p.19) The League f o r S o c i a l R e c o n s t r u c t i o n , i n i t s S o c i a l  P l a n n i n g F o r Canada, f o c u s e d some a t t e n t i o n on t h e l a n d s p e c u l a t o r who i s d e f i n e d as an " i n t e r i m l a n d o w n e r " who "owns l a n d beyond t h e m a r g i n of b u i l d i n g d e v e l o p m e n t " . ( L S R , 1935, p. 451) D e s p i t e some m e n t i o n of l a n d s p e c u l a t i o n , t h e h i g h c o s t of l a n d and t h e r e s u l t i n g ' i n c o n v e n i e n t and e x p e n s i v e c i t y p l a n t h a t r e s u l t s from ' p r i v a t e ' p l a n n i n g of l a n d , most o f t h e LSR's a t t e n t i o n t o u r b a n i s s u e s i s f o c u s e d on town p l a n n i n g , not l a n d o w n e r s h i p or t h e i n s t i t u t i o n o f p r i v a t e p r o p e r t y . In 1938 t h e League p u b l i s h e d Democracy Needs S o c i a l i s m p r o v i d i n g f u r t h e r e v i d e n c e t h a t i t a v o i d e d c o n f r o n t i n g t h e i n s t i t u t i o n of t h e p r i v a t e l a n d m a r k e t : A n t i - s o c i a l i s t s t r y t o make i t a p p e a r t h a t t h e v a l u e of s t o c k s , bonds and r e a l e s t a t e w ould a t once f a l l t o z e r o under s o c i a l i s m , t h a t t h e government would c o n f i s c a t e e v e r y t h i n g w i t h o u t payment and t h a t t h e s m a l l i n v e s t o r and p r o p e r t y owners would be 56 r u i n e d . The s m a l l r e a l e s t a t e owner need n o t f e a r f o r i n v e s t m e n t , l a n d needed f o r h o u s i n g schemes o r o t h e r p u b l i c p u r p o s e s w i l l be p u r c h a s e d a t f a i r a p p r a i s a l v a l u e . ( L e a g u e f o r S o c i a l R e c o n s t r u c t i o n , 1938, p. 107) The LSR f u r t h e r n o t e d t h a t t h e owner of homes w i l l be l e f t i n f u l l p o s s e s s i o n of t h e i r homes. I t a p p e a r e d t h a t , i n t h e i r a t t e m p t t o r e s p o n d t o t h e i r c r i t i c s , t h e LSR was t r y i n g i t s b e s t t o a s s u r e f a r m e r s and urban homeowners t h a t l a n d would n o t be n a t i o n a l i z e d o r c o n f i s c a t e d . One c a n c o n c l u d e t h a t t h e LSR and t h e CCF saw t h e i s s u e of p u b l i c l a n d o w n e r s h i p as a major p o l i t i c a l i s s u e w h i c h t h e y d i d n o t want t o a d d r e s s . 3.4 C o n c l u s i o n The 1930's marks s o m e t h i n g of a w a t e r s h e d i n t h e h i s t o r y of h o u s i n g p o l i c y . The p a t t e r n f o r f u t u r e p u b l i c p o l i c y on t h e p r o v i s i o n of h o u s i n g was e s t a b l i s h e d d u r i n g t h e 1930's by t h e f i r s t two f e d e r a l h o u s i n g a c t s . Many f a m i l i e s i n t h i s p e r i o d were u n a b l e t o a f f o r d a d e q u a t e h o u s i n g due t o t h e h i g h l e v e l s of unemployment and r e d u c e d f a m i l y i n c o m e s . Governments were p a r t i c u l a r l y c o n c e r n e d w i t h t h e h i g h l e v e l s o f unemployment. Unemployment e n c o u r a g e d t h e government t o i n t r o d u c e a number of measures w h i c h i n c l u d e d t h e h o u s i n g a c t s . The f e c d e r a l government hoped t h a t by a i d i n g t h e p r i v a t e h o u s i n g s e c t o r , t h e c o n s t r u c t i o n o f h o u s i n g w o u l d be e n c o u r a g e d and employment would be i n c r e a s e d . L and p o l i c y , - however, was n o t a major c o n c e r n t o 57 h o u s i n g p o l i c y - m a k e r s . D u r i n g t h e 1-930's l a n d v a l u e s had d e c r e a s e d , l a n d s p e c u l a t i o n had d i s a p p e a r e d and g o v e r n m e n t s no l o n g e r had t o c o n t e n d w i t h a t t e m p t i n g t o s e r v i c e t h e h a p h a z a r d p a t t e r n of s p e c u l a t i v e s u b u r b a n r e s i d e n t i a l d e v e l o p m e n t s . P r i v a t e l a n d o w n e r s h i p r e c e i v e d v e r y l i t t l e c r i t i c i s m . Even t h e C.C.F. l i m i t e d t h e i r l a n d p o l i c y p r o p o s a l s t o t h e r e g u l a t i o n of l a n d u s e s . The t r e a t m e n t of l a n d a s a p r i v a t e l y h e l d market commodity r e c e i v e d v e r y l i t t l e c r i t i c i s m from t h e C.C.F.. The C.C.F. U r g e d t h e i n t r o d u c t i o n o f l a n d use r e g u l a t i o n . However, even l a n d use r e g u l a t i o n was not p u r s u e d by g o v e r n m e n t s d u r i n g t h e 1930's b e c a u s e t h e p a c e of u r b a n d e v e l o p m e n t was s l o w . In most r e s p e c t s , l a n d p o l i c y was a n o n - i s s u e f o r t h o s e i n d i v i d u a l s u r g i n g g r e a t e r government i n v o l v e m e n t i n t h e p r o v i s i o n of h o u s i n g . 5 8 CHAPTER FOUR POST-WAR GOVERNMENT HOUSING PROGRAMMES AND THE RETURN OF LAND PROBLEMS: 1940-1969 D u r i n g t h e war t h e f e d e r a l government began t o p l a n f o r th e p o s t war p e r i o d . I t e s t a b l i s h e d t h e A d v i s o r y Committee on R e c o n s t r u c t i o n i n 1941 t o make p l a n s f o r t h e t r a n s i t i o n t o p e a c e t i m e and t h e r e c o n s t r u c t i o n of t h e economy. Government p l a n s i n c l u d e d a c e n t r a l r o l e f o r t h e f e d e r a l government i n t h e p r o v i s i o n of wartime and p o s t war v e t e r a n s h o u s i n g . F o u r f e d e r a l a c t i v i t i e s d u r i n g the 1940's were of p a r t i c u l a r i m p o r t a n c e : t h e p r o v i s i o n of h o u s i n g t h r o u g h Wartime H o u s i n g L i m i t e d , t h e A d v i s o r y Committee on R e c o n s t r u c t i o n and i t s s u b c o m m i t t e e ' s r e p o r t on H o u s i n g and Community P l a n n i n g , t h e p a s s a g e of t h e 1944 N a t i o n a l H o u s i n g A c t and t h e e s t a b l i s h m e n t o f t h e C e n t r a l M o r t g a g e and H o u s i n g C o r p o r a t i o n i n 1946. Of c e n t r a l c o n c e r n was how government would accommodate t h e r e t u r n of s o l d i e r s and t h e e x p e c t e d i n c r e a s e i n f a m i l y h o u s e h o l d f o r m a t i o n . The y e a r s 1940 t o 1969 were a p e r i o d of b u o y a n t economic t i m e s t h a t saw t h e economy t u r n a r o u n d from t h e slump o f t h e d e p r e s s i o n t o a l o n g p e r i o d of economic g r o w t h . 59 T h ese y e a r s were m a r k e d by i n c r e a s i n g wage r a t e s , l ow i n f l a t i o n , low unemployment, low m o r t g a g e r a t e s a n d an upward t r e n d i n t h e a n n u a l number o f h o u s i n g c o n t s t r u c t i o n . The c o m p l e t i o n o f u r b a n h o u s i n g u n i t s i n c r e a s e d f r o m 49,000 i n 1940 t o more t h a n 155,000 i n I 9 6 9 ( s e e A p p e n d i x ) . D u r i n g t h i s p e r i o d , e x c e p t f o r a few m i n o r d e c l i n e s i n t h e a n n u a l r a t e o f c o m p l e t i o n s , t h e r e was a c o n t i n u o u s i n c r e a s e i n t h e number o f a n n u a l c o m p l e t i o n s . I n c r e a s e d h o u s i n g c o n s t r u c t i o n a c t i v i t y r e f l e c t e d t h e h i g h r a t e o f employment among C a n a d i a n w o r k e r s . The i n c r e a s e d amount o f h o u s i n g c o n s t r u c t i o n a n d i n c r e a s e d income l e v e l s a l s o t r a n s l a t e d i n t o r i s i n g l a n d p r i c e s . As shown i n t a b l e I I , r e s i d e n t i a l l a n d p r i c e s i n c r e a s e d d r a m a t i c a l l y d u r i n g t h e p o s t war p e r i o d a t p a c e f a s t e r t h a n t h e g e n e r a l l e v e l o f p r i c e a n d income i n c r e a s e s ( i n c r e a s i n g f a m i l y i n c o m e s a l s o r e f l e c t e d i n c r e a s e s i n two wage e a r n e r f a m i l i e s ) . F o r e x a m p l e , w h i l e t h e consumer p r i c e i n d e x i n c r e a s e d 6 2 % and f a m i l y i n c o m e s 184.3%, f r o m 1949 t o 1969 t o 1969, l a n d c o s t s f o r t h e a v e r a g e N.H.A. b u n g a l o w r o s e by 330%. The c o s t o f l a n d a l s o r e p r e s e n t e d a l a r g e r p r o p o r t i o n o f t h e c o s t o f h o u s i n g a s t h e c o s t s o f u r b a n i n f r a s t r u c t u r e a n d raw l a n d i n c r e a s e d . As n o t e d by t a b l e I I I , l a n d i n c r e a s e d f r o m 8.1% i n 1949 t o 17.8% i n 1969 a s a p r o p o r t i o n o f t h e t o t a l c o s t o f s i n g l e f a m i l y homes f i n a n c e d u n d e r t h e N.H.A.. FIGURE 3 Dwelling Units Completed C a n a d a , 1 9 4 0 - 6 9 / A/ * / x I r V \ V J f \ / 1 9 4 0 1 9 4 5 1 9 5 0 1 9 5 5 Source: Appendix B of th i s report 1 9 6 0 1 9 6 5 61 T a b l e II I n d e x e s of r e s i d e n t i a l l a n d c o s t s , r e s i d e n t i a l c o n s t r u c t i o n c o s t s and consumer p r i c e s , 1949-1969 Year Land C o n s t . Consumer Consumer I ndex C o s t s C o s t s P r i c e Pr i c e of p e r I ndex I ndex F a m i l y s q u a r e ( a l l goods) ( s h e l t e r ) Incomes f o o t 1 949 26.8 75.9 77.3 66.8 56.4 1 950 34.0 79.2 79.6 73.2 N. A. 1 950 42.0 86. 1 88.0 78.8 66.5 1 952 48 . 1 88.3 90. 1 82.7 N. A. 1 953 48.0 89. 1 89.3 85.2 N.A. 1 954 68. 1 90.6 89.9 87. 1 77.9 1 955 72.9 92.5 90.0 89.2 82.2 1 956 81 .2 96. 3 91.3 91 .3 N.A. 1 957 92. 1 98. 1 94.3 93.0 87.3 1 958 100.4 99.5 96.8 95.4 92. 5 1959 100.8 . 101.6 97.9 97.0 93.4 1 960 96.2 100.4 99. 1 99.0 N.A. 1961 ' 100.0 100.0 1 00.0 100.0 100.0 1 962 103.3 99.5 101.2 101.6 N.A. 1 963 1 09.7 1 00.7 103.0 103.4 111.7 1 964 114.7 106.0 104.8 106.0 N.A. 1 965 114.8 109.5 1 07.4 1 08.8 125.4 1 966 122.5 118.4 111.4 112.2 N.A. 1 967 128.6 1 22.9 115.4 117.5 141.3 1 968 1 36.6 128.9 120.1 124.6 151.5 1 969 1 47.7 137.8 125.5 133.1 1 60.6 N o t e : 1961 = 100.0 The i n d e x e s f o r l a n d and c o n s t r u c t i o n c o s t s a r e b a s e d on t h o s e f o r s i n g l e f a m i l y homes f i n a n c e d u nder t h e N.H. A. S o u r c e s : CMHC, 1970, p. 65; L e a c y , 1983, K8-18. 62 T a b l e I I I Land c o s t s a s a p r o p o r t i o n of t h e t o t a l c o s t of s i n g l e f a m i l y homes f i n a n c e d under t h e N.H.A., 1949-1969 Year The c o s t of l a n d as a p e r c e n t a g e of t h e t o t a l c o s t of t h e a v e r a g e s i n g l e f a m i l y house f i n a n c e d under t h e N.H.A. 1949 8.1 1951 9.6 1954 13.6 1955 14.2 1956 14.7 1957 16.1 1958 17.3 1959 17.1 1960 16.5 1961 16.9 1962 17.3 1963 17.8 1964 17.8 1965 16.9 1966 16.6 1967 17.0 1968 17.7 1969 17.8 S o u r c e : CMHC, 1978, p. 75. 63 D u r i n g t h e 1940 t o 1969 p e r i o d f e d e r a l h o u s i n g m e a s u r e s widened i n scope t o i n c l u d e u r b a n r e n e w a l , p u b l i c h o u s i n g , l a n d a s s e m b l y and s e r v i c i n g and t h e f i n a n c i a l s u p p o r t f o r m u n i c i p a l p l a n n i n g . I t i n c r e a s e d i t s d i r e c t r o l e i n t h e p r o d u c t i o n of h o u s i n g . F o r example, w h i l e i n 1940 10.9 p e r c e n t of h o u s i n g s t a r t s were f i n a n c e d u n d e r t h e N a t i o n a l H o u s i n g A c t , by 1969 t h i s had i n c r e a s e d t o 40.6% of h o u s i n g s t a r t s . ( C M H C , 1970, p. 1) The p e r i o d began and c o n c l u d e d w i t h major f e d e r a l s t u d i e s of h o u s i n g and ur b a n d e v e l o p m e n t . The 1944 subcommittee r e p o r t p r o p o s e d a c e n t r a l r o l e f o r government i n t h e p r o d u c t i o n of h o u s i n g . The n e x t m a j o r f e d e r a l s t u d y , t h e 1969 Task F o r c e on H o u s i n g and Urban Development q u e s t i o n e d t h e p r e f o r m a n c e of f e d e r a l h o u s i n g programmes and c a l l e d f o r an even l a r g e r f e d e r a l r o l e i n h o u s i n g . T h e r e were t h r e e major s e t s of N.H.A. amendments, t h e f i r s t i n 1944 which i n t r o d u c e d m e a s u r e s s u p p o r t i n g community p l a n i n g and t h e s e c o n d i n 1954 w h i c h i n t r o d u c e d i n s u r e d m o r t g a g e s and p e r m i t t e d banks t o l o a n f u n d s under N.H.A.. The t h i r d s e t of amendments i n 1964 expanded t h e government's r o l e i n t h e p r o v i s i o n of low income h o u s i n g . In t h e d i s c u s s i o n of h o u s i n g p o l i c y t h e urban l a n d p r o b l e m emerged a g a i n a f t e r b e i n g i g n o r e d t h r o u g h o u t t h e 1930's. The s h o r t a g e of s e r v i c e d l a n d and r i s i n g l a n d p r i c e s i n c r e a s e d t h e v i s i b i l i t y of t h e ur b a n l a n d p r o b l e m . 64 4.1 The C u r t i s Sub-committee on H o u s i n g and  and Community P l a n n i n g : 1942-1944 The s u b c o m m i t t e e on H o u s i n g a n d Community P l a n n i n g was e s t a b l i s h e d i n 1942 by t h e f e d e r a l g overnment's A d v i s o r y Committee on R e c o n s t r u c t i o n : t o r e v i e w e x i s t i n g l e g i s l a t i o n and a d m i n i s t r a t i v e o r g a n i z a t i o n s r e l a t i n g t o h o u s i n g and community p l a n n i n g , b o t h u r b a n and r u r a l , t h r o u g h o u t Canada and t o r e p o r t r e g a r d i n g s u c h c h a n g e s i n l e g i s l a t i o n . ( C a n a d a , 1944, p. 4) I t i n c l u d e d s e n i o r p r o v i n c i a l and f e d e r a l c i v i l s e r v a n t s , a r c h i t e c t s , u n i v e r s i t y p r o f e s s o r s and m u n i c i p a l o f f i c i a l s . F e a r i n g t h e r e t u r n of t h e e c o n o m i c c o n d i t i o n s of t h e d e p r e s s i o n y e a r s , much hope was p l a c e d i n g r e a t e r government i n v o l v e m e n t i n t h e economy t h r o u g h K e y n s i a n p o l i c i e s and o t h e r m e asures t o a v o i d t h e r e t u r n of h i g h unemployment and h o u s i n g p r o b l e m s . The Sub-committee s k e t c h e d out what t h e y v i e w e d as t h e p h a s e s of t h e p o s t war p e r i o d : 1) 1947-47 R e c o n v e r s i o n and c o n t r a c t i o n ; 2) 1948-50 Re-equipment boom; 3) 1951 Economic Peak; 4) 1952-54 R a p i d E c o n o m i c D e c l i n e . (Canada, A d v i s o r y Committee, 1944, p. 150) Of g r e a t e s t c o n c e r n was unemployment i n t h e p o s t - w a r y e a r s and a p o s s i b l e h o u s i n g s h o r t a g e . Government h o u s i n g p o l i c y was v i e w e d as an a n t i - c y c l i c a l s t a b i l i z a t i o n t o o l t o be u s e d as a p o l i c y i n s t r u m e n t t o a v o i d r e c e s s i o n s . The h o u s i n g programme s h o u l d be s u b j e c t t o a f l e x i b l e m a r g i n e f o r t h e p u r p o s e of f i t t i n g i t i n t o a l a r g e r framework of p o s t - w a r p o l i c y a i m i n g a t e c o n o m i c s t a b i l i z a t i o n and f u l l employment. ( I b i d , p. 150) 6 5 The Sub-committee a l s o f o c u s e d on t h e need f o r town p l a n n i n g and l a n d use c o n t r o l m e a s u r e s . Town p l a n n i n g was g i v e n g r e a t emphasis i n t h e r e p o r t as one of t h e key f a c t o r s i n t h e improvement of h o u s i n g c o n d i t i o n s . Town p l a n n i n g i s e s s e n t i a l l y t h e m a t t e r of u s i n g l a n d i n i t s most e f f i c i e n t and s o c i a l l y d e s i r a b l y way.(Canada, A d v i s o r y Committee, 1944, p. 9) The r e p o r t recommended f e d e r a l a s s i s t a n c e t o m u n i c i p a l g o v e r n m e n t s t o e n c o u r a g e t h e i m p l e m e n t a t i o n o f l a n d use p l a n n i n g i n o r d e r t o p r e p a r e f o r h o u s i n g developments,. U n l i k e much of t h e p l a n n i n g l i t e r a t u r e from t h e 1920's, t h e r e was no c r i t i c i s m of t h e l a n d d e v e l o p m e n t i n d u s t r y o r t h e r e a l e s t a t e community. The Sub-committee i n d i c a t e d i t s c o n f i d e n c e i n t h e market mechanism and t h e d e v e l o p m e n t i n d u s t r y by recommending t h a t t h e p r o v i s i o n of h o u s i n g be t h e r e s p o n s i b i l i t y of t h e p r i v a t e s e c t o r I t has been assumed by t h e committee t h a t t h e g r e a t b u l k of h o u s i n g , whether p u b l i c l y , p r i v a t e l y or c o - o p e r a t i v e l y owned w i l l be b u i l t by p r i v a t e c o n t r a c t o r s and c o r p o r a t i o n s . ( I b i d , p. 9) The 1944 f e d e r a l t h r o n e s p e e c h announced new h o u s i n g p o l i c i e s and programmes, however, t h e new l e g i s l a t i o n d i d no t f o l l o w t h e recommendations of t h e S u b - c o m m i t t e e ' s r e p o r t . The government i n d i c a t e d i t s c o n c e r n f o r t h e m a i n t e n a n c e of f u l l employment and t h e r e c o n s t r u c t i o n of t h e economy w h i c h would " r e q u i r e programmes of n a t i o n a l and r e g i o n a l d e v e l o p m e n t , i n c l u d i n g h o u s i n g and community p l a n n i n g " . (House of Commons D e b a t e s , 1944 S e s s i o n , p. 3) 66 T h r o u g h o u t t h e 1944 s e s s i o n of p a r l i a m e n t h o u s i n g p r o b l e m s were of g r e a t i n t e r e s t t o t h e government and o t h e r members. Such t o p i c s a s h o u s i n g s h o r t a g e s , slum c l e a r a n c e , h o u s i n g c o n d i t i o n s i n major c i t i e s and e v i c t i o n s were d i s c u s s e d . J . I l l s e l y , t h e M i n i s t e r of F i n a n c e who was a l s o r e s p o n s i b l e f o r h o u s i n g , t o l d t h e house when i n t r o d u c i n g t h e 1944 N.H.A. amendments t h a t : I f t h e r e i s one t h i n g upon which a l l p a r t i e s i n t h i s house a g r e e i t i s on t h e i m p o r t a n c e of p l a c i n g a house b u i l d i n g programme and t h e improvement of h o u s i n g c o n d i t i o n s w e l l up i n t h e f o r e f r o n t of t h e g e n e r a l programme of r e c o n s t r u c t i o n . (House o f Commons D e b a t e s , 1944 S e s s i o n , p. 5973~5 The measures p r o p o s e d by t h e L i b e r a l s and l a t e r p a s s e d w i t h no s i g n i f i c a n t r e v i s i o n s made few major c h a n g e s i n t h e g o v e r n m e n t ' s p a s t a p p r o a c h t o h o u s i n g p o l i c y . Most i m p o r t a n t was t h e g o v e r nment's i n t e n t i o n t o i n c r e a s e f u n d i n g l e v e l s o f e x i s t i n g programmes. As b e f o r e , p o l i c i e s s o u g h t t o s u p p o r t t h e h o u s i n g market and t h e c o n s t r u c t i o n i n d u s t r y by e n c o u r a g i n g p r i v a t e s e c t o r i n v e s t m e n t i n h o u s i n g t h r o u g h j o i n t l o a n s , l o a n s f o r low r e n t a l h o u s i n g , and g u a r a n t e e of l o a n s f o r r e h a b i l i t a t i o n . The o n l y m a j o r change was t h e i n c l u s i o n o f p r o v i s i o n s f o r c o n d u c t i n g t e c h n i c a l r e s e a r c h i n t o h o u s i n g and m u n i c i p a l p l a n n i n g . ( I b i d , pp. 5638-5639) C o n c e r n was e x p r e s s e d t h a t t h e d e v e l o p m e n t i n d u s t r y was made up of t o o many s m a l l o p e r a t o r s who, t h e y f e a r e d , would be i n c a p a b l e of p r o d u c i n g t h e l a r g e amount o f h o u s i n g t h a t w ould be needed f o r r e t u r n i n g v e t e r a n s . I f a n y t h i n g , t h e government wanted t o e n c o u r a g e c o n s o l i d a t i o n o f t h e l a n d 67 d e v e l o p m e n t i n d u s t r y . One of t h e g r e a t w e aknesses i n t h e house b u i l d i n g i n d u s t r y i n Canada i s t h e a b s e n c e of a s u b s t a n t i a l number of c ompanies w i t h competent management and w i t h s u f f i c i e n t l y l a r g e r e s o u r c e s t o a c q u i r e l a r g e b l o c k s o f l a n d , p a r t i c u l a r l y i n t h e l a r g e c i t i e s where l a n d v a l u e s a r e h i g h , and t o d e v e l o p s u c h a r e a s i n a c o m p r e h e n s i v e way, p r o v i d i n g a l l n e c e s s a r y community and i n c i d e n t a l s e r v i c e s . ( I b i d , p. 597 7) A l t h o u g h a t t h a t t i m e h o u s i n g was b e i n g s u c c e s s f u l l y b u i l t a n d managed by t h e Wartime H o u s i n g C o r p . , no s u g g e s t i o n was made i n t h e House d e b a t e s t h a t t h e d i r e c t government p r o v i s i o n of h o u s i n g was an o p t i o n . I t was r e c o g n i z e d t h a t t h e p r i v a t e s e c t o r c o u l d not cope w i t h r a p i d u r b a n i z a t i o n a n d t h e p r o d u c t i o n of h o u s i n g w i t h o u t a s s i s t a n c e , h o u s i n g p o l i c y went t o g r e a t l e n g t h s t o e n s u r e t h a t h o u s i n g and t h e u r b a n l a n d market would r e m a i n t h e domain of t h e p r i v a t e s e c t o r . The CCF members d i d not a c t i v e l y oppose t h e t e n o r of t h e f e d e r a l h o u s i n g programme. They d i d a r g u e t h a t t h e p r o p o s e d f u n d i n g l e v e l s a l l o c a t e d f o r t h e N.H.A. were t o o low and t h a t not enough e m p h a s i s had been g i v e n t o town p l a n n i n g . CCF members s u g g e s t e d t h a t town p l a n s o r z o n i n g b y l a w s s h o u l d be r e q u i r e d b e f o r e h o u s i n g f u n d s were made a v a i l a b l e t o c o m m u n i t i e s . CCF h o u s i n g c r i t i c S t a n l e y Knowles was c o n c e r n e d t h a t i n c r e a s e d government i n v o l v e m e n t i n h o u s i n g would l e a d t o r i s i n g l o t p r i c e s : In view of t h e i n c r e a s e d demand f o r b u i l d i n g l o t s , as a r e s u l t of t h e government h o u s i n g p r o p o s a l s , w i l l t h e government g i v e c o n s i d e r a t i o n t o t h e p l a c i n g o f a c e i l i n g 68 p r i c e on l o t s a v a i l a b l e f o r new h o u s e s . ( House of Commons D e b a t e s , 1944 S e s s i o n , p. 34641 Much of t h e i r c r i t i c i s m s i n d i c a t e d t h a t p h i l o s o p h i c a l l y t h e CCF were i n agreement w i t h t h e Sub-committee r e p o r t on H o u s i n g and Community P l a n n i n g and t h a t t h e y were c o n c e r n e d t h a t t h e government was not p a y i n g enough heed t o t h e r e p o r t ' s r e c o m m e n d a t i o n s . ( I b i d , pp. 5981-5985) 4.2 Post-war p l a n n e r s and t h e H o u s i n g P r o b l e m W h i l e t h e f e d e r a l government c o n c e r n e d i t s e l f w i t h making i n c r e a s e d mortgage c a p i t a l a v a i l a b l e f o r h o u s i n g , most l a n d use p l a n n e r s t u r n e d t h e i r a t t e n t i o n t o p h y s i c a l p l a n n i n g c o n c e r n s s u c h as p r o d u c i n g m a s t e r p l a n s , z o n i n g b y l a w s and h o u s i n g s u r v e y s t h a t would o v e r s e e t h e c o n s t r u c t i o n o f t h e i n f r a s t r u c t u r e n e c e s s a r y f o r new s u b u r b a n n e i g h b o u r h o o d s . E. G. F a l u d i , a m u n i c i p a l p l a n n e r r e s p o n s i b l e f o r t h e p r e p a r a t i o n of many c i t y m a s t e r p l a n s d u r i n g t h e 1940's and 1950's i n c l u d i n g t h e 1944 T o r o n t o m a s t e r p l a n , i d e n t i f i e d h o u s i n g a s one of t h e t h r e e components of p o s t war p o l i c y . He e n v i s i o n e d : The o p e n i n g up of l a n d and r e s o u r c e s t h a t have n e v e r been e x p l o i t e d b e f o r e t h e war t h a t w i l l need t h e b u i l d i n g o f new towns and v i l l a g e s . ( F a l u d i , 1944, p. 6, 10) F a l u d i and o t h e r p l a n n e r s were c o n c e r n e d w i t h how t o put i n p l a c e t h e needed p l a n s and l a n d use c o n t r o l s w h i c h would g u i d e t h e c o n s t r u c t i o n of i n f r a s t r u c t u r e f o r su b u r b a n h o u s i n g d e v e l o p m e n t s . The u r b a n l a n d p r o b l e m was r a r e l y 69 d e f i n e d d u r i n g t h e 1940's by p l a n n e r s and government o f f i c i a l s i n terms of l a n d s p e c u l a t i o n or p r i v a t e p r o p e r t y o w n e r s h i p . I t was u s u a l l y d e f i n e d i n t e r m s of poor n e i g h b o u r h o o d d e s i g n , and t h e l a c k of a d e q u a t e h o u s i n g p o l i c i e s , m u n i c i p a l i n f r a s t r u c t u r e and p u b l i c l a n d use p l a n s and c o n t r o l s . Some p l a n n e r s of t h i s p e r i o d a d v o c a t e d more government d i r e c t i o n of a l l a s p e c t s o f h o u s i n g d e v e l o p m e n t s . F o r example, P e t e r O b e r l a n d e r c a l l e d f o r : a h o u s i n g e r a o f more permanent l o n g r a n g e p o l i c y , an a c c u r a t e a s s e s s m e n t of h o u s i n g needs i n a l l of i t s p h y s i c a l and s o c i a l a s p e c t s must p r o c e d e v e r y l a r g e s c a l e h o u s i n g d e v e l o p m e n t . ( C a r v e r , O b e r l a n d e r and A r m s t r o n g , 1949, p. 199) The key t o i m p r o v e d h o u s i n g c o n d i t i o n s , f o r many p l a n n e r s , was ah o v e r h a u l of p u b l i c p o l i c i e s and f u n c t i o n s t h a t would i n s t i t u t i o n a l i z e m u n i c i p a l l a n d use p l a n n i n g a s a f u n c t i o n o f g overnment. Humphrey C a r v e r , an a r c h i t e c t and l a t e r a CMHC s t a f f member, when w r i t i n g on t h e ' h o u s i n g c r i s i s i n T o r o n t o , warned t h a t t h e r e was no e f f e c t i v e c o n t r o l of f r i n g e d e v e l o p m e n t . He f u r t h e r commented t h a t t h e 1944 T o r o n t o m a s t e r p l a n had not "won t h e a l l e g i a n c e " o f s u b u r b a n m u n i c i p a l i t i e s and t h a t t h e E t o b i c o k e M a s t e r P l a n ( t h e n t h e o n l y o t h e r m a s t e r p l a n i n use i n t h e T o r o n t o r e g i o n ) d i d not c o n f o r m t o t h e T o r o n t o p l a n . ( C a r v e r , 1947, p. 245) In a d d i t i o n t o t h e m a s t e r p l a n s and l a n d use by laws b e i n g p r e p a r e d , many s t u d i e s of h o u s i n g c o n d i t i o n s were u n d e r t a k e n . One of t h e f i r s t d u r i n g t h i s p e r i o d was u n d e r t a k e n f o r t h e C i t y of S t . J o h n ' s , N f l d . , on h o u s i n g 70 and town p l a n n i n g . I t f o c u s e d on t h e improvement of h o u s i n g c o n d i t i o n s , t h e roadway s y s t e m and t h e c i t y ' s p a r k s and p l a y g r o u n d s . Improved h o u s i n g c o n d i t i o n s , a c c o r d i n g t o t h e r e p o r t , r e q u i r e d t h e improvement of not o n l y h o u s e s , but a l s o o t h e r community f a c i l i t i e s and i n f r a s t r u c t u r e . A l t h o u g h much of t h e r e p o r t d e a l t w i t h p h y s i c a l h o u s i n g and community p r o b l e m s , i t d i d p r o p o s e a u n i q u e programme of government i n v o l v e m e n t i n t h e a s s e m b l y of r e s i d e n t i a l l a n d on t h e f r i n g e o f t h e c i t y . The government l a n d a s s e m b l y f o l l o w e d t h e p r i n c i p l e s recommended i n t h e 1942 B r i t i s h U t h w a t t C o m m i t t e e . The U t h w a t t c o m m i t t e e w h i c h was a p p o i n t e d by t h e B r i t i s h House o f Commons c a l l e d a r g u e d t h a t t h e s t a t e s h o u l d b e n e f i t from any l a n d v a l u e i n c r e a s e s r e s u l t i n g f r o m t h e p e r m i s s i o n o f p l a n n i n g a u t h o r i t i e s t o a l l o w t h e c o n v e r s i o n of p r i v a t e l y , h e l d l a n d from r u r a l t o u r b a n u s e . I t recommended t h a t a b e t t e r m e n t l e v y be imposed t h a t would c o l l e c t t h e i n c r e m e n t i n l a n d v a l u e s . The l a n d a s s e m b l y i n S t . J o h n ' s a t t e m p t e d t o a d a p t t h i s p r i n c i p l e by p u b l i c l y a s s e m b l i n g l a n d f o r r e s i d e n t i a l d e v e l o p m e n t and t h e n l e a s i n g t h e l a n d out t o homeowners. La n d s h o u l d be p u r c h a s e d a t f a i r ' a g r i c u l t u r a l v a l u e ' . The method of e x p r o p r i a t i o n i s an a d a p t a t i o n of t h e U t h w a t t p r o p o s a l s and may be t h e f i r s t i n s t a n c e o f t h e . . . m e t h o d o f d e t e r m i n i n g f a i r a g r i c u l t u r a l v a l u e of l a n d r e a d y f o r b u i l d i n g d e v e l o p m e n t . ( B l a n d , 1946, p. 302) The S t . J o h n ' s h o u s i n g s t u d y r e s u l t e d i n t h e c o n s t r u c t i o n o f 244 d w e l l i n g s i n a s u b u r b a n r e s i d e n t a l d e v e l o p m e n t . A l t h o u g h t h e h o u s i n g was s o l d , t h e l o t s were l e a s e d f o r a 99 y e a r 71 p e r i o d . ( I b i d , p. 302) A f t e r t h e war CMHC r e q u e s t e d t h a t c o m m u n i t i e s p r e p a r e h o u s i n g s u r v e y s and implement p l a n s and p l a n n i n g c o n t r o l s b e f o r e t h e committment of f e d e r a l h o u s i n g a s s i s t a n c e . (See L a y o u t f o r L i v i n g , November 1949, pp. 2-20) Humphrey C a r v e r i d e n t i f i e d .the need f o r u r b a n l a n d p o l i c y t h a t would a d d r e s s h o u s i n g p r o b l e m s . W i t h a tremendous c o n s t r u c t i o n t a s k on our h ands, we c a n n o t a f f o r d t o p r o v i d e s t r e e t s , s e r v i c e s and s c h o o l s f o r i s o l a t e d h o u s e s s c a t t e r e d w i d e l y o v e r t h e raw l a n d o u t s i d e u r b a n a r e a s . U n f o r t u n a t e l y t h i s s p o r a d i c way of b u i l d i n g c o n t i n u a l l y t h r e a t e n s t o d e v e l o p as low income home b u i l d e r s , e v e r s e e k i n g l o w e r c o s t s , a r e a t t e m p t e d f u r t h e r a f i e l d by c h e a p l a n d . ( C a r v e r , 1947, p. 2) The s e a r c h f o r c h e a p l a n d was, a c c o r d i n g t o C a r v e r , r e s u l t i n g i n s u b u r b a n s p r a w l . Many h o u s e h o l d s ' of modest incomes were f o r c e d by economic c i r c u m s t a n c e t o l o c a t e o u t s i d e t h e d e v e l o p e d a r e a of c o m m u n i t i e s b e c a u s e l a n d c o s t s were h i g h i n t h e c i t i e s . A l t h o u g h p l a n n e r s were c o n c e r n e d w i t h t h e l a y o u t and c o n t r o l o f r e s i d e n t i a l and u r b a n d e v e l o p m e n t , t h i s was not of p r i m a r y c o n c e r n t o t h e g e n e r a l p u b l i c . F a l u d i and Adamson commented i n a 1946 a r t i c l e t h a t i n p r e p a r i n g m a s t e r p l a n s and z o n i n g b y l a w s a c r o s s Canada: the. needs w h i c h a p p e a r e d t o t h e p u b l i c of most c o n s e q u e n c e as a r e s u l t of g r o w t h were p u b l i c improvements s u c h as d i s p o s a l p l a n t s , s c h o o l s , s t r e e t m o d i f i c a t i o n s , p a r k i n g , r e c r e a t i o n a r e a s and m u n i c i p a l b u i l d i n g s . L e s s i n t e r e s t was shown i n i m p r o v i n g b l i g h t , i n s e t t i n g a s i d e l a n d f o r g r o w t h and i n c o n t r o l l i n g f r i n g e d e v elopment.(Adamson and F a l u d i , 1946, p. 2-3) 72 The major p r o b l e m s c o n f r o n t i n g government i n t h e y e a r s f o l l o w i n g t h e Second W o r l d War was t h e p r o v i s i o n o f h o u s i n g f o r r e t u r n i n g s e r v i c e m e n and t h e i r f a m i l i e s . The p o s t war p l a n n e r s v i e w e d t h e i r r o l e a s a d d r e s s i n g t h e ' h o u s i n g c r i s i s ' t h r o u g h p u b l i c p o l i c i e s w h i c h p r o v i d e d an o v e r a l l p l a n f o r t h e d e v e l o p m e n t of new r e s i d e n t i a l n e i g h b o u r h o o d s and a l s o , i n c r e a s e d t h e s u p p l y of u r b a n , s e r v i c e d l a n d . 4.3 The s h o r t a g e of s e r v i c e d l a n d W h i l e i n t h e l a t e 1940's h o u s i n g p o l i c y f o c u s e d on t h e r o l e o f m u n i c i p a l p l a n n i n g , a s h o r t a g e of s e r v i c e d l a n d f o r s u b u r b a n d e v e l o p m e n t began t o emerge. I t was e s t i m a t e d t h a t more t h a n 22,000 a c r e s of l a n d p e r y e a r was r e q u i r e d f o r s u b u r b a n d e v e l o p m e n t . In 1952 D a v i d Mansur, P r e s i d e n t of CMHC, t o l d t h e P a r l i a m e n t a r y Committee on B a n k i n g and Commerce t h a t by 1950 t h e m a j o r i t y of u r b a n m u n i c i p a l i t i e s had u s e d up most of t h e i r a v a i l a b l e s e r v i c e d l a n d and t h a t t h e c a p a c i t y o f e x i s t i n g m u n i c i p a l t r u n k s e r v i c e s was s e v e r e l y t a x e d . ( M a n s u r , 1952, p. 82) The f e d e r a l government i n t r o d u c e d amendments t o t h e N.H.A. as e a r l y as 1949 a l l o w i n g f o r t h e p u b l i c a s s e m b l y of l a n d s f o r h o u s i n g p u r p o s e s . I t was hoped t h a t p u b l i c l a n d a s s e m b l i e s would e n c o u r a g e t h e d e v e l o p m e n t o f p l a n n e d r e s i d e n t i a l d e v e l o p m e n t s . C D . Howe, f e d e r a l M i n i s t e r of R e c o n s t r u c t i o n , t o l d t h e House o f Commons t h a t he hoped t h e new amendments would d i r e c t more p r i v a t e r e s o u r c e s i n t o t h e p r o d u c t i o n o f d e c e n t new n e i g h b o u r h o o d s . 73 The b i l l i s meant t o put a t a f i n a n c i a l d i s a d v a n t a g e , v i s - a - v i s t h e l e n d i n g i n s t i t u t i o n s , s u c h s p e c u l a t i v e d e v e l o p e r s who h a b i t u a l l y b u i l d on s c a t t e r e d l o t s and s e l l t o b a r g a i n - h u n t e r s who t h e n s h o r t l y demand e x t r a v a g a n t and h a p h a z a r d e x t e n s i o n s of m u n i c i p a l s t r e e t s and s e r v i c e s . (See L a y o u t f o r L i v i n g , F a l l I s s u e , p. 6) D e s p i t e t h e p a s s a g e of t h e amendments t h e r e was l i t t l e g overnment e x p e n d i t u r e on p u b l i c l a n d a s s e m b l y u n t i l 1 9 5 1 . ( D e n n i s and F i s h , p. 320-321) The s u p p l y o f s e r v i c e d l a n d was a l s o c o n s t r a i n e d by t h e l i m i t s on m u n i c i p a l b o r r o w i n g f o r c a p i t a l e x p e n d i t u r e . M u n i c i p a l i t i e s r e a c t e d by r e q u i r i n g r e s i d e n t i a l b u i l d e r s t o f i n a n c e s e r v i c e s . Most b u i l d e r s , however, were o n l y s m a l l c o m p a n i e s and t h e y d i d n o t have t h e r e s o u r c e s t o f i n a n c e s u c h s e r v i c e s . ( I b i d , p. 83) R o b e r t W i n t e r s , t h e M i n i s t e r r e s p o n s i b l e f o r h o u s i n g , e x p l a i n e d t h e p r o b l e m t o t h e House of Commons i n t h i s way: The p o s t war r a t e o f h o u s i n g s t a r t s has f a r e x c e e d e d t h e r a t e of l o t d e v e l o p m e n t and t h e growth of m u n i c i p a l s e r v i c e s . . . t h e r e f o r e , t h e amount o f a v a i l a b l e s e r v i c e d l a n d has r a p i d l y d i m i n i s h e d . In some c e n t r e s s u b s t a n t i a l programmes of new r e s i d e n t i a l d e v e l o p m e n t must w a i t on t h e p r o v i s i o n o f a d d i t i o n a l s e r v i c e d l a n d . . . B e c a u s e o f u n w i 1 1 i n g n e s s s o r i n a b i l i t y t o borrow, t h e m u n i c i p a l i t i e s do not a l w a y s r e s p o n d a s soon as t h e need f o r a d d i t i o n a l s e r v i c e d l a n d a r i s e s . ( House of Commons D e b a t e s , 1954 S e s s i o n , p. 4451) The p r o b l e m s of r a p i d p o s t war u r b a n e x p a n s i o n and t h e r e s u l t i n g s h o r t a g e s o f s e r v i c e d l a n d c a l l e d f o r some s o r t o f s e n i o r government r e s p o n s e t o a s s i s t m u n i c i p a l i t i e s and b u i l d e r s . In 1954 R o b e r t W i n t e r s i n t r o d u c e d amendments t o 74 t h e N a t i o n a l H o u s i n g A c t t h a t " r e c o g n i z e d t h e p r i m e i m p o r t a n c e of s e r v i c e d l a n d " . (House of Commons D e b a t e s , 1954 s e s s i o n , p. 4451) The amendments i n t r o d u c e d new measures t o e n c o u r a g e more s e r v i c i n g of r e s i d e n t i a l s u b u r b a n l a n d t h r o u g h f e d e r a l - p r o v i n c i a l p a r t n e r s h i p i n e a c h of t h e p r o v i n c e s . T h r o u g h t h e s e p a r t n e r s h i p s , t h e f e d e r a l and t h e p r o v i n c i a l government would j o i n t l y p u r c h a s e l a n d on t h e f r i n g e of urba n a r e a s , s e r v i c e t h e l a n d and t h e n s e l l t h e l a n d t o b u i l d e r s who would pay f o r i t on e x t e n d e d payback t e r m s . A l t h o u g h t h e f e d e r a l government r e c o g n i z e d t h a t u r b a n l a n d was of c e n t r a l i m p o r t a n c e t o h o u s i n g s u p p l y , t h e f o c u s of t h e l e g i s l a t i v e amendments d i d not a d d r e s s t h e urba n l a n d p r o b l e m o t h e r t h a n t o h e l p i n c r e a s e t h e s u p p l y of s e r v i c e d l a n d . R o b e r t W i n t e r s s t a t e d t h a t t h e o b j e c t i v e of t h e h o u s i n g l e g i s l a t i o n was, " t o m a i n t a i n house b u i l d i n g a t a h i g h r a t e " . (House of Commons D e b a t e s , 1954 S e s s i o n , p. 1313) However, r e l a t i v e l y few l a n d a s s e m b l y p r o j e c t s were i n i t i a t e d by t h e p r o v i n c i a l and f e d e r a l g o v e r n m e n t s d u r i n g t h e 1 9 5 0 ' s . ( D e n n i s and F i s h , 1972, pp. 320- 329) F o r example, as shown i n T a b l e IV, from 1950 t o 1960, o n l y 49 l a n d a s s e m b l y p r o j e c t s were i n i t i a t e d under s e c t i o n 40 of t h e N.H.A. p r o v i d i n g 15,156 l o t s . T h i s r e p r e s e n t e d 1.5% of th e t o t a l number of t h e h o u s i n g u n i t s r e q u i r i n g s e r v i c e d l o t s . ( C M H C , 1978, p. 58) The 1954 d e b a t e on t h e N.H.A. amendments d i f f e r e d from p r e c e d i n g d e b a t e s on t h e f e d e r a l h o u s i n g a c t s b e c a u s e u r b a n 75 l a n d p r o b l e m s were of c o n c e r n t o many members. F o r example, C l a r e n c e G i l l i s , C.C.F. M. P. f o r Cape B r e t o n S o u t h , t o l d t h e house t h a t he f e l t t h a t l a n d s p e c u l a t i o n was one of t h e p r i n c i p a l p r o b l e m s . A n o t h e r m a t t e r t h e government i s l a c k i n g i n s u p e r v i s i n g , n ot o n l y t h e f e d e r a l government, but t h e p r o v i n c i a l and m u n i c i p a l g overnments a l s o , i s t h a t o f l a n d s p e c u l a t i o n , w h i c h i s one of t h e main s t u m b l i n g b l o c k s t o d a y i n t h e p r o v i s i o n of homes. ( I b i d , p. 1430) C l a u d e E l l i s , CCF member f o r R e g i n a C e n t r e , a d d e d t h a t l a n d v a l u e s were up s u b s t a n t i a l l y s i n c e 1945 due t o t h e a c t i o n s of l a n d s p e c u l a t o r s . S p e c u l a t i o n on r e s i d e n t i a l l a n d i s , he s a i d , " i s a v e r y u n p a t r i o t i c a c t " . ( I b i d , p. 1430) P a u l H e l l y e r , L i b e r a l M.P. and f o r m e r d e v e l o p e r from T o r o n t o , t o l d t h e house t h a t r i s i n g l a n d . p r i c e s were not t o blame f o r r i s i n g h o u s i n g p r i c e s . R i s i n g h o u s i n g p r i c e s , a c c o r d i n g t o H e l l y e r , were p r i n c i p a l l y due t o l a r g e r h o u s e s , h i g h e r q u a l i t y c o n s t r u c t i o n and r i s i n g l a b o u r costs., A l t h o u g h he c o n c e d e d t h a t l a n d c o s t s had r i s e n s u b s t a n t i a l l y i n t h e T o r o n t o a r e a d u r i n g t h e p a s t two y e a r s , he made no me n t i o n o f l a n d s p e c u l a t i o n a s a s i g n i f i c a n t c o n t r i b u t i o n t o house p r i c e i n c r e a s e s . ( I b i d , p. 1369) The f e d e r a l - p r o v i n c i a l government a s s i s t a n c e p r o v i d e d f o r i n t h e N.H.A., n e v e r a d d r e s s e d any o f t h e of t h e b r o a d e r i s s u e s r e l a t i n g t o u r b a n l a n d . The l a n d p r o b l e m was d e f i n e d s i m p l y i n terms of t h e s u p p l y of s e r v i c e d s u b u r b a n l o t s . CMHC P r e s i d e n t , D a v i d Mansur was aware t h a t l a n d p r i c e s were e s c a l a t i n g c o n s i d e r a b l y o nce t h e l a n d was 76 s e r v i c e d . He t o l d t h e P a r l i a m e n t a r y Committee on B a n k i n g and Commerce t h a t : When a m u n i c i p a l i t y moves o u t t r u n k s e r v i c e s i n t o a raw l a n d a r e a , t h e raw l a n d i m m e d i a t e l y t a k e s on a new p r i c e 10 t i m e s i t s raw l a n d p r i c e . Under t h e f e d e r a l / p r o v i n c i a l p a r t n e r s h i p scheme, t h e raw l a n d i s p u r c h a s e d i n v e r y l a r g e b l o c k s b e f o r e t h e r e i s any u n e a r n e d i n c r e m e n t i n t h e l a n d v a l u e t o t h e l u c k y landowner on whose l a n d t h e m u n i c i p a l s e r v i c e s a r e . p l a c e d . ( M a n s u r , 1952, p. 84) What i s p a r t i c u l a r l y i n t e r e s t i n g a b o u t Mansur's s t a t e m e n t i s t h a t t h e c o n c e p t of 'the u n e a r n e d i n c r e m e n t i n t h e l a n d v a l u e ' had c r e p t back i n t o t h e d i s c o u r s e a f t e r b e i n g a b s e n t from l a n d p o l i c y d i s c u s s i o n s s i n c e t h e l a t e 1'920's. L a t e r i n h i s t e s t i m o n y Manson d e f e n d e d t h e p r o f i t s of t h e b u i l d e r i n the s a l e of r e s i d e n t i a l l o t s . F o r Mansur t h i s was a d i f f e r e n t c a s e b e c a u s e t h e b u i l d e r .was making a p r o f i t on c a p i t a l and improvements t h a t he had made on t h e l a n d . T hese p r o f i t s , he a r g u e d , were t o be d i s t i n g u i s h e d from t h e 'unearned' p r o f i t s of t h e l a n d h o l d e r . Though i t r e c o g n i z e d t h i s i s s u e , t h e f e d e r a l government n e v e r p a s s e d any p o l i c i e s t o do a n y t h i n g about i t . 77 T a b l e IV L o t s d e v e l o p e d under t h e N.H.A. F e d e r a l - P r o v i n c i a l Land Assembly P r o j e c t s , 1950-1969 Ye a r Number of l o t s d e v e l o p e d 1950 0 1 951 1 35 1 952 1 ,095 1 953 922 1954 1 ,880 1 955 440 1 956 839 1 957 991 1 958 1 ,003 1 959 2,044 1 960 262 1 961 470 1 962 569 1 963 382 1 964 21 1 1 965 633 1 966 2 , 1 1 9 1967 2,323 1 968 1,381 1969 816 S o u r c e : CMHC, 1971 , p. 50) 78 4.4 The l a t e 1950's and t h e 1960's: The L a n d Debate Rev i s i t e d The d i s c o u r s e on h o u s i n g p r o b l e m s by u r b a n a n a l y s t s d u r i n g t h e l a t e 1950's and t h e 1960's i s n o t a b l e f o r t h e i n t r o d u c t i o n o f a number of i d e a s t h a t had n o t a p p e a r e d i n t h e p l a n n i n g l i t e r a t u r e s i n c e t h e 1920's. Such i d e a s as a l a n d t a x s i m i l a r t o t h a t p r o p o s e d by Henry G e o r g e i n t h e 1860's, t h e p u b l i c , c o s t s of s u b u r b a n s p r a w l and t h e r e l a t i o n s h i p between the a f f o r d a b i 1 i t y of h o u s i n g and r i s i n g l a n d p r i c e s were i s s u e s o f c o n c e r n and d e b a t e once a g a i n among urb a n p l a n n e r s and o t h e r u r b a n a n a l y s t s . Some town p l a n n e r s q u e s t i o n e d whether t h e p r i v a t e l a n d m arket and t h e t r e a t m e n t of l a n d as a commodity was i n c o n f l i c t w i t h t h e o b j e c t i v e of i m p r o v i n g h o u s i n g c o n d i t i o n s . In 1957 t h e V a n c o u v e r H o u s i n g A s s o c i a t i o n n o t e d i n a s t a t e m e n t on f e d e r a l h o u s i n g p o l i c y t h a t l e s s t h a n 7.5% of f a m i l i e s c o u l d a f f o r d t h e a v e r a g e c o s t of N.H.A. f i n a n c e d h o u s e s . The H o u s i n g A s s o c i a t i o n l i n k e d t h e h i g h c o s t of h o u s i n g t o t h e c o s t of b o r r o w e d money and t h e h i g h c o s t o f l a n d . They a r g u e d t h a t t h e h i g h c o s t of l a n d r e s u l t e d from i t s s c a r c i t y v a l u e which a r o s e from t h e c o n t i n u i n g s h o r t a g e of s e r v i c e d l a n d . However, t h e i r s u g g e s t i o n s f o r d e a l i n g w i t h t h e s e p r o b l e m s were q u i t e modest. P e r h a p s t h e b e s t we can hope t o do i s t o c h e c k i n c r e a s e d l a n d c o s t s t o some e x t e n t by (a) c a r e f u l s i t i n g and d e s i g n i n g o f r e s i d e n t i a l s u b d i v i s i o n s and (b) making low 79 c o s t money a v a i l a b l e t o f i n a n c i a l l y weak m u n i c i p a l i t i e s f o r t h e p r o v i s i o n of u t i l i t y s e r v i c e s " ( V a n c o u v e r H o u s i n g A s s o c i a t i o n , 1957, p. 41) In 1958, Mary Rawson, an e c o n o m i s t w i t h th e N a t i o n a l R e s e a r c h C o u n c i l , put f o r w a r d a p r o p o s a l s i m i l a r t o Henry G e o r g e ' s i d e a of d i s c o u r a g i n g s p e c u l a t i v e p r o f i t s by t a x i n g t h e v a l u e o f l a n d and not t a x i n g t h e v a l u e of t h e i m p r o v e m e n t s . Rawson a r g u e d t h a t s u c h a t a x would r e s u l t i n l o w e r l a n d c o s t s f o r community impro v e m e n t s . I t i s a l r e a d y e v i d e n t t h a t t o s h i f t t h e t a x l o a d o n t o l a n d would r e s u l t i n l o w e r l a n d p r i c e s . And l o w e r l a n d p r i c e s mean l o w e r c o s t s f o r slum c l e a r a n c e , s t r e e t w i d e n i n g s , p a r k and p l a y g r o u n d p r o j e c t s . When t h e hope f o r s p e c u l a t i v e p r o f i t s i s t a k e n out of t h i s s o r t of h o l d - u p , p l a n n i n g e f f o r t s , w i l l be l e s s o f t e n t h w a r t e d . ( R a w s o n , 1 9 5 8 , p. 29) . Rawson's p r o p o s a l was c r i t i c a l of t h e n o t i o n . t h a t i t was p r o p e r f o r l a n d o w n e r s t o p r i v a t e l y a p p r o p r i a t e r i s i n g l a n d v a l u e s . A L i b e r a l s e n a t o r , D a v i d C r o l l , i n t h e k e y - n o t e a d d r e s s t o t h e 1956 N a t i o n a l C o n f e r e n c e of t h e Community P l a n n i n g A s s o c i a t i o n , was a l s o q u i t e c r i t i c a l o f l a n d o w n e r s ' p r i v a t e a p p r o p r i a t i o n o f l a n d v a l u e s . He was c o n c e r n e d w i t h t h e a c t i v i t i e s o f slum l a n d l o r d s who, i n h i s o p i n i o n , were v i c t i m i z i n g low income f a m i l i e s . Slum p r o p e r t i e s a r e a c q u i r e d c h e a p l y , w i t h minimum upkeep and w i t h low a s s e s s m e n t and t a x e s . So t h e y c o n t i n u e t o f l o u r i s h . T hus, e c o n o m i c v u l t u r e s , t h e y p r e y and p r o f i t on low income g r o u p s w h i l e we i g n o r e t h e i r p l i g h t . ( C r o l l , 1956, p. 145) C r o l l s u g g e s t e d t h a t h i g h e r m u n i c i p a l t a x a t i o n of t h e s e p r o p e r t i e s w o u l d go f a r t o remedy t h i s p r o b l e m . 80 T h e r e was i n c r e a s i n g c o n c e r n d u r i n g t h i s p e r i o d a b o u t t h e h i g h c o s t of s u b u r b a n s p r a w l . M i s t e r C r e r a r , a r e s e a r c h e r w i t h t h e G r e a t e r V a n c o u v e r R e g i o n a l D i s t r i c t , a r g u e d t h a t u n c h e c k e d low d e n s i t y s u b u r b s would be a d r a i n on m u n i c i p a l f i n a n c e s due t o t h e h i g h c o s t of s e r v i c i n g . H i s s u g g e s t i o n s , s i m i l a r t o t h o s e of o t h e r p l a n n e r s , f o c u s e d on b e t t e r ways of c o n t r o l l i n g s u c h d e v e l o p m e n t t h r o u g h l a n d use c o n t r o l s . ( C r e r a r , 1959, p. 44) The R o y a l Commission on Canada's Economic P r o s p e c t s a l s o l i m i t e d i t p r o p o s a l s f o r government a c t i o n on l a n d p r o b l e m s t o l a n d use r e g u l a t i o n and t h e p r o v i s i o n of i n f r a s t r u c t u r e . The c o m m i s s i o n was e s t a b l i s h e d d u r i n g t h e l a s t d a y s of t h e L i b e r a l S t . L a u r e n t f e d e r a l a d m i n i s t r a t i o n . I t c o m m i s s i o n e d a b a c k g r o u n d s t u d y on h o u s i n g and s o c i a l c a p i t a l t o examine what government p o l i c i e s w o u l d be n e c e s s a r y t o s e r v i c e r e s i d e n t i a l l a n d and t o a d e q u a t e l y house C a n a d i a n s . The r e p o r t d i d not i n c l u d e any d i s c u s s i o n o f u r b a n l a n d beyond o b s e r v a t i o n t h a t s u b u r b a n s p r a w l must be a v o i d e d . ( D u b e , Howes, McQueen, 1957, p. 34-41) In a 1960 i s s u e o f CMHC's H a b i t a t , a S a s k a t c h e w a n r e a l t o r and P r e s i d e n t o f t h e C a n a d i a n A s s o c i a t i o n o f R e a l E s t a t e B o a r d s c a l l e d f o r t h e e s t a b l i s h m e n t o f a f e d e r a l R o y a l Commission on Land Use i n Canada: the l a n d s p e c u l a t o r i s s i m i l a r l y g u i l t y [ a n d ] i s not a s u b d i v i d e r w o rthy of t h e name. F o r i t i s s t i l l t r u e t h a t a good s u b d i v i d e r , o r d e v e l o p e r c r e a t e s v a l u e ; t h e s p e c u l a t o r c r e a t e s n o t h i n g . ( K o y l e , D. H., 1960, p. 13) The s s p e c u l a t o r was t o be d i s t i n g u i s h e d f r o m o t h e r a c t o r s i n 81 t h e l a n d d e v e l o p m e n t p r o c e s s b e c a u s e , i t was a r g u e d , he d i d not c r e a t e v a l u e . He added t h a t t h e R o y a l Commission c o u l d p r o p o s e p o l i c i e s t h a t would be "an i n t e g r a l p a r t of t h e p r e s e r v a t i o n of e q u i t i e s of t h e homeowner".( I b i d , p. 17) D u r i n g t h e e a r l y 60's a number of p l a n n e r s b r o a d e n e d t h e c r i t i c i s m of t h e u r b a n l a n d market beyond t h e r o l e of t h e l a n d s p e c u l a t o r . Some p l a n n e r s i n d i c a t e d c o n c e r n t h a t l a n d s h o u l d not be c o n s i d e r e d a commodity. F o r example, i n 1962 t h e Town P l a n n i n g I n s i t u t e of Canada a p p o i n t e d a c o m m i t t e e t o p r e p a r e a s u b m i s s i o n t o the I n q u i r y of t h e R o y a l A r c h i t e c t u r a l I n s t i t u t e of Canada i n t o t h e R e s i d e n t i a l E n v i r o n m e n t of Canada. The c o m m i t t e e i n c l u d e d s u c h w e l l known p l a n n e r s as Hans B l u m e n f e l d , Norman P e a r s o n and Hugh Lemon who examined t h e r o l e of p l a n n i n g i n C a n a d i a n u r b a n d e v e l o p m e n t . T h i s TPIC c o m m i t t e e a r g u e d t h a t , i f l a n d was r e g a r d e d as a r e s o u r c e , i m p roved h o u s i n g c o n d i t i o n s would r e s u l t . L a nd, h a v i n g been r e g a r d e d as a commodity, has been s o l d and e x c h a n g e d and broken i n t o s m a l l p a r c e l s , p a s s e d f r om s p e c u l a t o r t o s p e c u l a t o r w i t h a d i s t u r b i n g d i s r e g a r d f o r t h e r e s i d e n t i a l e n v i r o n m e n t . ( I b i d , p. 92) As an a l t e r n a t i v e t o t r e a t i n g l a n d as a commodity, t h e c o m m i t t e e p r o p o s e d t h a t i t be t r e a t e d as a r e s o u r c e . I f l a n d i s r e g a r d e d as a r e s o u r c e , t h e n i t must be seen t h a t l a n d i s p u t t o i t s w i s e s t u s e , and h i g h e s t s t a n d a r d s o f economic and s o c i a l w e l l b e i n g and a e s t h e t i c s a t i s f a c t i o n . ( T P I C Committee, 1962, p. 92) The c o m m i t t e e p r o p o s e d as an a l t e r n a t i v e t o t h e t r e a t m e n t of l a n d as a commodity p u b l i c p o l i c i e s w h i c h would 82 d i s a l l o w t h e p r i v a t e a p p r o p r i a t i o n of p r i v a t e l a n d v a l u e s . Land, t h e y p r o p o s e d would be h e l d on l e a s e h o l d , r a t h e r t h an on a f r e e h o l d b a s i s . I f l a n d were h e l d i n l e a s e h o l d r a t h e r t h a n f e e s i m p l e , t h e r e might be a b e t t e r a t t i t u d e t o l o n g t e r m m o r t g a g e s and m a i n t e n a n c e . . . T h e p r e v a l e n t a t t i t u d e t h a t whole s e c t i o n s of our c i t i e s can be ' t r a d e d i n ' e v e r y d e c a d e or two must g i v e way t o an a t t e m p t t o b u i l d f o r a l i f e t i m e ( I b i d , p. 97) The c o m m i t t e e added t h a t s u c h l a n d i s s u e s were r a r e l y d i s c u s s e d by t h e p l a n n i n g p r o f e s s i o n and were g e n e r a l l y o v e r l o o k e d i n t h e c o n c e r n f o r p o o r h o u s i n g and s o c i a l d i s c o m f o r t . ( I b i d , p. 97) Ted R a s h l e i g h , a p l a n n e r who had p r a c t i c e d i n b o t h T o r o n t o and E n g l a n d , o f f e r e d an argument s i m i l a r t o t h a t o f t h e c o m m i t t e e . "However, he r e m i n d e d p l a n n e r s t h a t t h e h i g h v a l u e p l a c e d on p r i v a t e l a n d o w n e r s h i p p o s e d p r o b l e m s f o r any c h a n g e s i n t h e n a t u r e of p r o p e r t y r i g h t s . In t h i s c o u n t r y , th e s o c i a l v a l u e of l a n d o w n e r s h i p i s h i g h , w h i l e t e n a n c y and p u b l i c o w n e r s h i p i s h e l d s u s p e c t . P r i v a t e l a n d o w n e r s h i p i s so s a c r o s a n c t i n p u b l i c o p i n i o n and law, t h a t i t can q u e s t i o n t h e p r o p r i e t r y of p l a n n i n g p r o p o s a l s and d e f e a t l e g i t i m a t e community o b j e c t i v e s . ( R a s h l e i g h , 1962, p. 76) In 1965 G. W. B r y a n t , a P r o f e s s o r of P l a n n i n g a t t h e U n i v e r s i t y of M o n t r e a l , a r g u e d t h a t p r i v a t e p r o p e r t y as a s o c i a l phenomena was not n e c e s s a r i l y h e r e t o s t a y even t h o u g h i t was d e e p l y embedded i n N o r t h A m e r i c a n s o c i e t y . He w r ote t h a t t h e p r i v a t e a p p r o p r i a t i o n o f l a n d v a l u e s was not n e c e s s a r i l y l o g i c a l o r e t h i c a l b e c a u s e : Land v a l u e s depend so l a r g e l y on s i t i n g and 83 l o c a t i o n , and a r i s e o u t of t h e g e n e r a l g r o w t h of t h e c o m m u n i t y . ( B r y a n t , 1963, p. 44) B ecause l a n d v a l u e s a r e p u b l i c l y g e n e r a t e d he c a l l e d f o r c u r b i n g t h e r i g h t of l a n d o w n e r s t o a p p r o p r i a t e t h e s e v a l u e s t h r o u g h a change i n t h e way l a n d was h e l d . S i m i l a r t o t h e p r o p o s a l of t h e 1962 TPIC c o m m i t t e e , B r y a n t c a l l e d f o r a l e a s e h o l d form of t e n u r e . I t c a n n o t be t o o s t r o n g l y a r g u e d t h a t once l a n d i s t a k e n back i n t o t h e p u b l i c d o m a i n . . . i t s h o u l d on no a c c o u n t be s o l d o u t r i g h t , but s h o u l d be l e a s e d t o d e v e l o p e r s on v e r y l o n g l e a s e s . ( I b i d , p. 121) B r y a n t e m p h a s i z e d t h a t t h e most i m p o r t a n t government p o l i c y n eeded t o improve h o u s i n g c o n d i t i o n s and a f f o r d a b i 1 i t y was t h e e l i m i n a t i o n of t h e l a n d owner's r i g h t t o a p p r o p r i a t e p r i v a t e l a n d v a l u e s . The d e b a t e on l a n d p o l i c y i n t h e l a t e 1950's and e a r l y 1960's r e - i n t r o d u c e d t h e c o n c e p t of an u n e a r n e d i n c r e m e n t i n l a n d v a l u e s , t h e r e l a t i o n s h i p between r i s i n g l a n d v a l u e s and t h e u n a f f o r d a b i 1 i t y o f h o u s i n g and a q u e s t i o n i n g of t h e t r e a t m e n t of l a n d as a commodity. However, l a n d p o l i c y r e m a i n e d l i m i t e d t o l a n d use c o n t r o l , t a x measures and p u b l i c a s s i s t a n c e t o t h e l a n d d e v e l o p m e n t i n d u s t r y t h r o u g h i n c r e a s e d l a n d s e r v i c i n g . O n l y a s m a l l m i n o r i t y o f p l a n n e r s c a l l e d f o r major c h a n g e s i n l a n d p o l i c y t h a t went beyond t h e t r a d i t i o n a l a p p r o a c h e s o u t l i n e d a b o v e . 84 4.5 The f e d e r a l government i n c r e a s e s a i d t o low income fam i l i e s In 1964 Prime M i n i s t e r L e s t e r P e a r s o n ' s L i b e r a l government i n t r o d u c e d a number of major amendments t o t h e N a t i o n a l H o u s i n g A c t t o i n c r e a s e a i d t o low income f a m i l i e s . D u r i n g t h e House d e b a t e on t h e amendments l a n d s p e c u l a t i o n was one of t h e h o u s i n g i s s u e s r a i s e d . A P r o g r e s s i v e C o n s e r v a t i v e p a r t y member G. W. B a l d w i n , M. P. f o r P eace R i v e r p r o m o t e d t h e s i n g l e t a x a r g u i n g t h a t h i g h l a n d c o s t s were a t t h e r o o t o f t h e h o u s i n g p r o b l e m and t h a t 1964 N.H.A. amendments f a i l e d t o a d d r e s s t h i s key p r o b l e m . I do n o t t h i n k i t f t h e amendments] g e t s a t t h e r o o t c a u s e . . . o n e s c h o o l of t h o u g h t w i t h w h i c h I have some sympathy a d v o c a t e s t h e a p p r o a c h of H e n r y G e o r g e ! House of Commons  D e b a t e s , 1964 S e s s i o n , pp. 4066-4067) He f u r t h e r t o l d t h e M i n i s t e r of F i n a n c e , W a l t e r Gordon t h a t t a x i n g t h e c a p i t a l g a i n s of l a n d s p e c u l a t i o n d i d l i t t l e t o r e s o l v e t h e p r o b l e m . B a l d w i n a r g u e d t h a t a l a n d t a x , s i m i l a r t o t h a t p r o p o s e d by G e o r g e : would do more t h a n a n y t h i n g e l s e t h a t I know t o compel t h e owners o f what a r e now d e s c r i b e d as slum a r e a s t o b r i n g i n t o p r o d u c t i o n t h o s e p a r c e l s o f l a n d i n o r d e r t o pay t h e t a x e s . ( I b i d , p. 4067) B a l d w i n c o n c l u d e d t h a t c o n t i n u e d l a n d s p e c u l a t i o n would r e s u l t i n c o n t i n u e d slums and u n s a t i s f a c t o r y u r b a n s p r a w l . F e d e r a l m i n i s t e r r e s p o n s i b l e f o r h o u s i n g , J . R. N i c o l s o n , i n e x p l a i n i n g t h e amendments and t h e n a t u r e of t h e h o u s i n g p r o b l e m , a v o i d e d any m e n t i o n o f u r b a n l a n d : t h e i n t e n t of governemnt i s t o do i t s p a r t i n i m p r o v i n g t h e s t a n d a r d s of h o u s i n g and h o u s i n g c o n d i t i o n s f o r t h o s e i n need and... S e c o n d , we know t h e r e i s no a u t o m a t i c p r i v a t e market p r o c e s s w h i c h r e g e n e r a t s urban a r e a s as t h e y d e c l i n e . T h e r e f o r e , t h e government b e l i e v e s i f t h e r e i s t o be s u c h a r e g e n e r a t i v e p r o c e s s i t must be d e v e l o p e d as a m a t t e r of p u b l i c p o l i c y . ( House of  Commons D e b a t e s , 1964 S e s s i o n , p. 3795) In t h e c a s e o f slum c l e a r a n c e , t h e government f e l t t h a t t h e l a n d market c o u l d not do t h e t a s k w i t h o u t government a s s i s t a n c e . We seek t o f a c i l i t a t e p r i v a t e improvements and t h e f l u i d i t y of p r o p e r t y m a r k e t s i n r e n e w a l a r e a s , t h e N.H.A. i n s u r e d l o a n p r o v i s i o n s w i l l be e x t e n d e d t o e x i s t i n g h o u s i n g i n d e s i g n a t e d a r e a s . ( I b i d , p. 3795) A l t h o u g h t h e government c o n c e d e d t h a t many low income f a m i l i e s c o u l d n o t f i n d a d e q u a t e h o u s i n g i n t h e p r i v a t e market and t h a t p r o p e r t y m a r k e t s would not e n c o u r a g e t h e u p g r a d i n g of d e c l i n i n g a r e a s w i t h o u t government a s s i s t a n c e , no new l a n d p o l i c i e s were s u g g e s t e d . A l t h o u g h i n 1964 no L i b e r a l M.P.'s a d m i t t e d i n p a r l i a m e n t t h a t l a n d s p e c u l a t i o n was a p r o b l e m , as t h e dec a d e p a s s e d some began t o speak o p e n l y of t h e p r o b l e m . R e s i d e n t i a l l a n d p r i c e s were i n c r e a s i n g r a p i d l y . F o r example, i n T o r o n t o , from 1963 t o 1967 r e s i d e n t i a l l o t p r i c e s i n c r e a s e d 55.1%. In 1967 J a c k D a v i s , a L i b e r a l c a b i n e t m i n i s t e r , p r e s e n t e d a p a p e r t o a V a n c o u v e r c o n f e r e n c e on h o u s i n g t h a t a r g u e d t h a t t h e t h e p r i n c i p a l ' v i l l a i n ' i n h o u s i n g p r o b l e m s was t h e c o s t o f l a n d . He a l s o s a i d t h a t t h e c o s t of l a n d had gone up f a s t e r t h a n any o t h e r h o u s i n g c o s t and t h a t much of t h i s i n c r e a s e was due t o 86 s p e c u l a t i o n . I have n e v e r been one t o blame t h e s p e c u l a t o r f o r a l l t h e i l l s t h a t f a c e our u r b a n s o c i e t y or t o d e n i g r a t e t h o s e , whose s t a t e m e n t i t i s t o o b t a i n l a n d , t o go t h r o u g h t h e h i g h l y r i s k y , s k i l l e d and p r o t r a c t e d s e r v i c i n g o f l a n d . . . n e i t h e r have I r e g a r d e d t h i s a r r a n g e m e n t as t h e b e s t example of t h e w o r k i n g s of sound market s y s t e m . ( D a v i s , 1967, p. 8) A l t h o u g h he o f f e r e d some c r i t i c i s m of l a n d s p e c u l a t i o n , D a v i s e m p h a s i z e d t h a t t h e g overnment s o u g h t s o l u t i o n s s u c h as l a n d a s s e m b l y programmes t h a t s u p p o r t e d th e u r b a n l a n d m a r k e t . He p r o p o s e d t h a t l o t s f r o m government l a n d a s s e m b l i e s s h o u l d be s o l d d i r e c t l y t o t h e homeowner and t h u s b y - p a s s the s p e c u l a t o r . At the 1968 f e d e r a l - p r o v i n c i a l c o n f e r e n c e on H o u s i n g , b o t h P r i m e M i n i s t e r L e s t e r P e a r s o n and J . R. N i c h o l s o n , t h e f e d e r a l M i n i s t e r R e s p o n s i b l e f o r H o u s i n g , i n d i c a t e d t h a t t h e y l i n k e d r i s i n g h o u s i n g c o s t s and o t h e r p r o b l e m s t o r i s i n g l a n d c o s t s . P e a r s o n , e x p l a i n e d t h a t : The h i g h c o s t of s e r v i c e d l a n d i s a t t r i b u t a b l e t o : --- t h e c o s t of raw l a n d ; - t h e c o s t of p r o v i d i n g u n d e r g r o u n d and s t r e e t s e r v i c e s t o a h i g h l e v e l o f q u a l i t y ; - t h e e f f e c t of z o n i n g b y l a w s on r e s i d e n t i a l l a n d ; - t h e e f f e c t of m u n i c i p a l c a s h i m p o s t s on r e s i d e n t i a l l a n d ; - t h e d i f f i c u l t and o f t e n i n e f f i c i e n t p r o c e s s f o r o b t a i n i n g a p p r o v a l s f o r l a n d d e v e l o p m e n t . ( P e a r s o n , 1968, p.2) A c c o r d i n g t o P e a r s o n , f a c t o r s o t h e r t h a n t h e o p e r a t i o n of t h e u r b a n l a n d market were among t h e c a u s e s of h i g h l a n d c o s t s . 87 N i c h o l s o n was a l s o r e l u c t a n t t o p o i n t an a c c u s i n g f i n g e r a t t h e u r b a n l a n d market or l a n d s p e c u l a t o r s when he n o t e d t h a t r i s i n g h o u s i n g c o s t s were r e l a t e d p r i n c i p l y t o r i s i n g l a n d c o s t s and t h a t a c t i o n was r e a l l y w i t h i n t h e domain of t h e p r o v i n c e s . L and c o s t s p r o f o u n d l y a f f e c t t h e demand f o r h o u s i n g , but t h e a b i l i t y t o i n f l u e n c e t h e s e c o s t s i s m i n i m a l . The o p p o r t u n i t y and r e s p o n s i b i l i t y f o r d e a l i n g w i t h t h i s p r o b l e m r e s t s e s s e n t i a l l y w i t h p r o v i n c i a l g o v e r n m e n t s . ( N i c h o l s o n , 1968, p. 31) O n t a r i o ' s D e p u t y - M i n i s t e r of M u n i c i p a l A f f a i r s s t a t e d t h a t t h e o p i n i o n o f t h e O n t a r i o government was t h a t l a n d c o s t i n c r e a s e s i n c l u d e d a s u b s t a n t i a l s p e c u l a t i v e component w h i c h had r e s u l t e d from t h e l i m i t e d s u p p l y o f s e r v i e d l a n d . ( D e n n i s and F i s h , 1972, pp. 318-319) The most i m p o r t a n t r e s u l t of t h e s e d i s c u s s i o n s was an agreement between t h e p r o v i n c e s and t h e f e d e r a l government t o expand t h e e x i s t i n g p r o v i s i o n s f o r government l a n d a s s e m b l y programmes. D e s p i t e some c r i t i c i s m of l a n d s p e c u l a t i o n , no measures were u n d e r t a k e n by t h e f e d e r a l government t h a t would d i s c o u r a g e l a n d s p e c u l a t i o n o t h e r t h a n a t t e m p t s t o i n c r e a s e t h e s u p p l y of s e r v i c e d l a n d . 4.6 The 1969 F e d e r a l T ask F o r c e on H o u s i n g and Urban Development The o n - g o i n g r a p i d p a c e of u r b a n i z a t i o n d u r i n g t h e l a t e s i x t i e s and t h e c o n c e r n o f t h e f e d e r a l government t h a t t h e e f f e c t s o f i t s u r b a n r e n e w a l and s u b u r b a n h o u s i n g programmes on u r b a n d e v e l o p m e n t were n o t a l l p o s i t i v e l e d t h e f e d e r a l 88 government t o e s t a b l i s h a Task F o r c e on H o u s i n g and Urban Development i n 1968. Under t h e d i r e c t i o n of H o u s i n g m i n i s t e r P a u l H e l l y e r , t h e Task F o r c e t o u r e d t h e c o u n t r y t o examine t h e o p e r a t i o n of N.H.A. programmes. In some ways t h e Task F o r c e got o f f t o a bad s t a r t . The Task F o r c e was e s t a b l i s h e d " w i t h o u t o f f i c i a l b u r e a u c r a t i c b l e s s i n g , and CMHC, i n p a r t i c u l a r , was r e l u c t a n t , a l m o s t h o s t i l e " . ( H e l l y e r , 1977, p. 32) A c c o r d i n g t o H e l l y e r , CMHC had n ot had a p o l i c y d i r e c t i v e from one o f i t s m i n i s t e r s i n y e a r s and H e l l y e r was d e t e r m i n e d t o i n v e s t i g a t e many of t h e e x i s t i n g government programmes and p r o v i d e new d i r e c t i o n . The l a n d p r o b l e m was t h e i r f i r s t c o n c e r n : The c o s t and a v a i l a b i l i t y of s e r v i c e d l a n d was t o p s on our l i s t . I t was t h e b i g g e s t f a c t o r i n t h e p r i c e of accommodation and t h e one most e a s i l y c o n t r o l l a b l e . ( I b i d , p. 33) The Task F o r c e w r o t e t h a t t h e r e were two t y p e s of l a n d s p e c u l a t i o n . The f i r s t t y p e o c c u r r e d when an i n d i v i d u a l bought and h e l d l a n d on t h e p e r i p h e r y of c i t i e s f o r s p e c u l a t i v e g a i n . The s e c o n d form, a c c o r d i n g t o t h e Task F o r c e , was more s u b t l e . I t o c c u r r e d i n t h e c e n t r e o f c i t i e s and i n v o l v e d t h e under u t i l i z a t i o n of l a n d s f o r s u c h p u r p o s e s a s p a r k i n g l o t s . ( C a n a d a , 1969, p. 38) The Task F o r c e , a r g u e d t h a t t h e p r e s e n t p r o c e s s of p r i v a t e l a n d a s s e m b l y and p u b l i c s e r v i c i n g programmes s h o u l d be blamed f o r t h e h i g h c o s t of h o u s i n g . I m p o r t a n t as e f f o r t s t o c u r b l a n d s p e c u l a t i o n may be, t h e Task F o r c e b e l i e v e s t h e r o o t c u a s e o f r i s i n g l a n d c o s t s goes much d e e p e r . To p ut i t s i m p l y , i t b e l i e v e s t h a t t h e p r e s e n t s y s t e m f o r a s s e m b l i n g and 89 s e r v i c i n g l a n d i n much o f u r b a n Canada i s i r r a t i o n a l i n c o n c e p t and i n e f f i c i e n t i n p r a c t i c e . ( I b i d , p. 39) The c o m m i t t e e s u g g e s t e d t h a t t h e f e d e r a l government s h o u l d a d v ance l o a n s t o m u n i c i p a l i t i e s so t h a t t h e y might s e r v i c e a l l o r a major p o r t i o n of t h e l a n d r e q u i r e d f o r u r b a n growth w i t h i n t h e i r b o u n d a r i e s . The F e d e r a l Task F o r c e p r e s e n t e d i t s recommendations t o the i n l a t e 1969. The r e a c t i o n of t h o s e c o n c e r n e d w i t h h o u s i n g p o l i c y was mixed. In r e g a r d t o i t s recommendations f o r i n c e a s e d p u b l i c l a n d a s s e m b l y Humphrey C a r v e r w r o t e t h a t : The H e l l y e r Task F o r c e has g i v e n a new c l a r i t y of p u r p o s e and a b r e a t h of f r e s h a i r and r e a l i s m t o t h i s a im.( Ottawa J o u r n a l , F e b r u a r y 4, 1969) M i c h a e l W h e e l e r , a s o c i a l worker w i t h t h e C a n a d i a n C o u n c i l f o r S o c i a l D e v e l o p m e n t , f e l t t h a t i t was "an i l l u s i o n t o t h i n k t h e p r i v a t e market can house a l l d e c e n t l y " . ( F i n a n c i a l P o s t , F e b r u a r y 8, 1969, p. 17) He added t h a t : t h e p r o p o s a l t o make u r b a n l a n d d e v e l o p m e n t a government r e s p o n s i b i l i t y i s f u n d a m e n t a l l y sound and t h e o p p o r t u n i t y s h o u l d not be l o s t b e c a u s e o f c o n s t i t u t i o n a l n i c e t i e s . ( I b i d , p. 17) However, A l b e r t Rose was much more p e s s i m i s t i c a bout t h e p r o s p e c t s f o r f e d e r a l government a c t i o n t h e u r b a n l a n d p r o b l e m . T h i s p u r p o s e can s c a r c e l y be t a k e n s e r i o u s l y i n t h e p r e s e n t c o n t e x t o f f e d e r a l - p r o v i n c i a l r e l a t i o n s . ( G l o b e and M a i l , F e b r u a r y , 4, 1 969) The f e d e r a l government f a i l e d t o t a k e immediate a c t i o n 90 on t h e Task F o r c e ' s r e c o m m e n d a t i o n s . I t was f e l t by many, most n o t a b l y t h e Prime M i n i s t e r , t h a t t h e a c t i o n s s u g g e s t e d by t h e Task F o r c e were w i t h i n p r o v i n c i a l j u r i s d i c t i o n and, t h e r e f o r e s h o u l d not be i n i t i a t e d by t h e f e d e r a l g o v e r n m e n t . ( H e l l y e r , 1977, p. 34) H e l l y e r r e s i g n e d from h i s c a b i n e t p o s i t i o n i n A p r i l 1969 f o l l o w i n g t h e d e c i s i o n o f t h e c a b i n e t r e j e c t i o n of h i s r e c o m m e n d a t i o n s . 4.7 C o n c l u s i o n Canada underwent a l o n g p e r i o d of economic g r o w t h and u r b a n i z a t i o n f r o m 1940 t o 1969. In r e s p o n s e t o p r o b l e m s r e s u l t i n g f r o m t h e h i g h demand f o r h o u s i n g and r a p i d u r b a n d e v e l o p m e n t , g o v e r n m e n t s moved t o f u r t h e r i n s t i t u t i o n a l i z e m u n i c i p a l l a n d use r e g u l a t i o n and t o expand government i n v o l v e m e n t i n t h e p r o v i s i o n of h o u s i n g . However, l a n d p o l i c i e s s u c h as l a n d use r e g u l a t i o n and p u b l i c l a n d a s s e m b l y c o n t i n u e d t o t r e a t l a n d as as a p r i v a t e market commodity. Government p o l i c y - m a k e r s a v o i d e d s o l u t i o n s w h i c h m i g h t c h a l l e n g e t h i s way of t r e a t i n g l a n d . In g e n e r a l , t h e c o n c e r n w i t h t h e o p e r a t i o n o f l a n d m a r k e t s was g e n e r a l l y l i m i t e d t o a c o n c e r n f o r a s h o r t a g e o f s e r v i c e d l a n d and, f o r some, t h e i d e n t i f i c a t i o n of t h e l a n d s p e c u l a t o r as a v i l l a i n whose a c t i o n s c r e a t e d p r o b l e m s i n t h e s u p p l y of h o u s i n g . The b r o a d e r p o l i c y q u e s t i o n s , t h e t r e a t m e n t of l a n d as a p r i v a t e market commodity and t h e p r i v a t e a p p r o p r i a t i o n o f p u b l i c l y c r e a t e d l a n d v a l u e s , was o n l y o f c o n c e r n t o a s m a l l m i n o r i t y . No new l a n d p o l i c i e s were i n i t i a t e d d u r i n g 91 t h i s p e r i o d t h a t had not been i n t r o d u c e d i n t h e p r e c e d i n g p e r i o d s e x c e p t f o r t h e i n t r o d u c t i o n o f some government r e s i d e n t i a l l a n d a s s e m b l y programmes. Some a n a l y s t s , p o l i t i c i a n s and o f f i c i a l s d i d r e c o g n i z e t h a t r i s i n g l a n d c o s t s were c o n t r i b u t i n g t o t h e u n a f f o r d a b i 1 i t y of h o u s i n g . However, no s p e c i f i c p o l i c y o p t i o n s t h a t c h a l l e n g e d t h e r i g h t of p r o p e r t y owners t o p a r t i c i p a t e i n l a n d m a r k e t s were e v e r s e r i o u s l y c o n s i d e r e d . The o n l y d i r e c t government h o u s i n g a c t i v i t y was l i m i t e d t o p u b l i c h o u s i n g f o r a n a r r o w l y t a r g e t e d g r o u p o f low income h o u s e h o l d s . R e s i d e n t i a l l a n d r e m a i n e d a p r i v a t e l y h e l d commodity t h a t was a l l o c a t e d and d i s t r i b u t e d by t h e market 92 CHAPTER 5 THE 1970'S LAND BOOM AND THE LAND PROBLEM Urban l a n d p o l i c y emerged as a r e l a t i v e l y h i g h p r o f i l e i s s u e i n t h e 1970's. P a r t i c u l a r l y r a p i d i n c r e a s e s i n l a n d and h o u s i n g p r i c e s from 1974 t o 1976 f o c u s e d t h e a t t e n t i o n o f t h e g e n e r a l p u b l i c , p o l i t i c i a n s and u r b a n a n a l y s t s on u r b a n l a n d . Among t h o s e c o n c e r n e d w i t h u r b a n l a n d p o l i c y were a l a r g e number of c r i t i c s of t h e u r b a n l a n d market and t h e t r e a t m e n t of l a n d as a commodity. G r o w i n g c r i t i c i s m of t h e l a n d market and l a n d s p e c u l a t i o n l e d t h e d e v e l o p m e n t i n d u s t r y and many c o n v e n t i o n a l e c o n o m i s t s t o a c t i v e l y d e f e n d e d t h e p r i v a t e market mechanism. The p e r i o d s i n c e 1970 has been one of c o n t r a s t s i n u r b a n d e v e l o p m e n t and l a n d p o l i c y . C a n a d i a n s w i t n e s s e d one of t h e most r a p i d p e r i o d s of u r b a n i z a t i o n d u r i n g t h e 1970's w i t h l a n d p r i c e s o u t p a c i n g t h o s e of t h e 1950's and 1 9 6 0 ' ( s e e T a b l e V ) . H o u s i n g c o n s t r u c t i o n , as shown i n t a b l e 9, r e a c h e d t h e h i g h e s t l e v e l s e v e r i n 1978. On t h e o t h e r hand, t h e 1980's have been marked by t h e f i r s t m ajor d e c l i n e s i n h o u s i n g c o n s t r u c t i o n s i n c e t h e I 9 3 0 ' s ( s e e F i g u r e 4 ) , s o a r i n g i n t e r e s t r a t e s and i n 1983 and 1984, d e c l i n i n g l a n d p r i c e s . The e s c a l a t i n g l a n d and h o u s i n g p r i c e s of t h e 1970's were e x p l a i n e d by many e c o n o m i s t s as b e i n g r e l a t e d t o a 93 c o m b i n a t i o n of f a c t o r s t h a t d r a m a t i c a l l y i n c r e a s e d t h e demand f o r h o u s i n g . F i r s t , t h e r e was a d r a m a t i c i n c r e a s e i n t h e number of f a m i l i e s i n t h e 25 t o 34 y e a r o l d age g r o u p , t h e p e r i o d when most h o u s e h o l d s f i r s t e n t e r t h e h o u s i n g m a r k e t . Second, p e r s o n a l d i s p o s a b l e income i n c r e a s e d a t a r a t e of 3.8% p e r annum a f t e r i n f l a t i o n . T h i r d , i n f l a t i o n was h i g h e r t h a n i t had been s i n c e t h e 1920's i n c r e a s i n g p r i c e l e v e l s 83% from 1971 t o 1976. F o u r t h , c a p i t a l was a t t r a c t e d t o t h e h o u s i n g market due t o s u b s i d i z e d home o w n e r s h i p programmes, t h e n o n - t a x a t i o n of c a p i t a l g a i n s on h o u s i n g and r e l a t i v e l y low r e a l mortgage r a t e s . ( S c h e f f m a n , 1977, pp. 61-62) Many c o n v e n t i o n a l e c o n o m i s t s r e g a r d e d r i s i n g l a n d and h o u s i n g p r i c e s as o n l y a tem p o r a r y phenomena and t h u s , o n l y a t e m p o r a r y p r o b l e m . O t h e r s a r g u e d t h a t r i s i n g p r i c e l e v e l s were o n l y a symptom of a b r o a d e r s t r u c t u r a l p r o b l e m , t h e t r e a t m e n t of l a n d as a commodity. 94 T a b l e V. In d e x e s of r e s i d e n t i a l l a n d c o s t s , r e s i d e n t i a l c o n s t r u c t i o n c o s t s and consumer p r i c e s , 1970-1983 Year Land C o n s t . Consumer Consumer C o s t s C o s t s P r i c e P r i c e p e r I ndex I ndex ( s h e l t e r ) s q u a r e ( a l l goods) f o o t 1 970 91.3 97.4 97.2 94.7 1971 100.0 100.0 100.0 1 00.0 1 972 106.5 106.7 104.8 1 05.5 1 973 101.9 122.2 112.7 112.7 1 974 106.1 1 49. 5 125.0 120.7 1 975 157.9 1 67. 1 1 38.5 1 30.9 1 976 201.1 180.6 149.1 145.8 1 977 223.9 189.3 160.9 1 59.2 1 978 239.0 1 98.9 175.1 171.1 1 979 295.7 213.3 191.2 180.5 1 980 319.7 222.7 210.7 1 92.5 1981 355. 1 244.3 237.0 213.2 1 982 347.0 258.0 262.6 239.2 1 983 338.0 284.8 277 .7 255. 4 Not e : Land and c o n s t r u c t i o n c o s t s a r e based on th e a v e r a g e s i n g l e f a m i l y d w e l l i n g f i n a n c e d by CMHC under t h e N.H.A. S o u r c e s : CMHC, 1978, p. 89; CMHC, 1979, p. 93. FIGURE k 280 Dweiiing Units Compieted C a n a d a , 1 9 7 0 - 8 4 1 9 7 0 1 9 7 2 1 9 7 4 1 9 7 6 1 9 7 8 1 9 8 0 1 9 8 2 1 9 8 4 total o Urban Source: Appendix B of th is report 96 5.1 P o l i t i c i a n s and t h e urba n l a n d p r o b l e m D u r i n g t h e 1970's many p o l i t i c i a n s i n v o l v e d w i t h h o u s i n g i s s u e s e x p l i c i t l y i d e n t i f i e d h i g h l a n d p r i c e s a s t h e major c a u s e of h o u s i n g a f f o r d a b i 1 i t y p r o b l e m s . F o r example, i n 1973 Ron B a s f o r d , M i n i s t e r of S t a t e f o r Urban A f f a i r s , t o l d t h e H o u s i n g and Urban Development A s s o c i a t i o n a t i t s a n n u a l c o n f e r e n c e t h a t : The p r i c e of urb a n l a n d i n Canada i s r i s i n g a t an u n a c c e p t a b l y r a p i d r a t e . . . T h e q u e s t i o n of t h e c o s t t o t h e i n d i v i d u a l c i t i z e n of owning l a n d o r u s i n g l a n d t o house h i m s e l f , and t h e q u e s t i o n of t h e d i s t r i b u t i o n of o w n e r s h i p of l a n d between i n d i v i d u a l s of d i f f e r i n g income l e v e l s , and between t h o s e i n d i v i d u a l s and l a n d owning and d e v e l o p m e n t c o r p o r a t i o n s , t h e q u e s t i o n of t h e amounts of l a n d g o v e r n m e n t s h o l d and make a v a i l a b l e f o r t h e common u s e - - a l l t h e s e a f f e c t i n a v e r y r e a l and d i r e c t way t h e q u a l i t y o f l i f e and economic w e l l b e i n g of C a n a d i a n s . ( B a s f o r d , 1973, pp. 9-10) Thus, even t h e f e d e r a l h o u s i n g m i n i s t e r d u r i n g t h i s p e r i o d was r a i s i n g s u c h i s s u e s as t h e p r i v a t e o w n e r s h i p of l a n d by c o r p o r a t i o n s and t h e d i s t r i b u t i o n o f l a n d among d i f f e r e n t g r o u p s i n s o c i e t y . E l e c t e d o f f i c i a l s from b o t h ends of t h e p o l i t i c a l s p e c t r u m i n t h e f e d e r a l House o f Commons a r g u e d t h a t t h e c o s t of l a n d would have t o be r e d u c e d i n o r d e r t o l o w e r h o u s i n g p r i c e s . C o n s e r v a t i v e H o u s i n g C r i t i c E l d o n Wooliams, M.P. f o r C a l g a r y N o r t h a r g u e d t h a t : Two p r o b l e m s must be s o l v e d i n t h e a r e a of h o u s i n g and u r b a n a f f a i r s . The f i r s t p r o b l e m i s money and t h e s e c o n d i s t h e p r i c e of 97 s e r v i c e d l a n d ; t o g e t enough money i n t o p r o j e c t s and r e d u c e t h e p r i c e of s e r v i c e d l a n d . ( House o f Commons D e b a t e s , 1973 S e s s i o n , p. 2274) S i n c l a i r S t e v e n s , P r o g r e s s i v e C o n s e r v a t i v e member f o r Y o r k -Simcoe, a c o n s t i t u e n c y on t h e f r i n g e of T o r o n t o , t o l d the House: Land p r i c e s , s o a r i n g as t h e y a r e , a r e v i r t u a l l y p r o h i b i t i n g t h e a v e r a g e p e r s o n i n Canada from t h e r i g h t w h i c h I f e e l he s h o u l d have, t o own h i s own house.( I b i d , p. 2351) Edward B r o a d b e n t , l e a d e r o f t h e New D e m o c r a t i c P a r t y , a r g u e d t h a t more f u n d i n g was n e c e s s a r y f o r p u b l i c l a n d a s s e m b l y p r o j e c t s t o r e d u c e t h e c o s t of s e r v i c e d r e s i d e n t i a l l o t s . He warned t h e House t h a t t h e p r e s e n t programme p r o p o s e d by t h e L i b e r a l s : w i l l n ot put a s t o p t o s p i r a l l i n g l a n d p r i c e s . I t d o e s n o t p r o m i s e t o p r o v i d e t h e l e v e l of s u p p o r t needed t o ea s e t h e b u r d e n of p r i c e i n c r e a s e s , l e t a l o n e s o l v e t h e h o u s i n g p r o b l e m . ( I b i d , p. 2280) Members of a l l f e d e r a l p a r t i e s a g r e e d t h a t t h e r e was an ur b a n l a n d p r o b l e m . A l l p a r t i e s d e f i n e d t h e p r o b l e m as h i g h l a n d c o s t s r e s u l t i n g i n h o u s i n g t h a t was u n a f f o r d a b l e f o r a g r e a t many C a n a d i a n s . However, t h e y d i f f e r e d on the s o l u t i o n s p r o p o s e d f o r t h i s p r o b l e m . The N.D.P. c r i t i c i z e d t h e government f o r s u p p o r t i n g t h e market and a l l o w i n g d e v e l o p e r s and f i n a n c i a l i n s t i t u t i o n s t o d o m i n a t e t h e p r o v i s i o n of h o u s i n g . ( I b i d , pp. 2280-2284) The L i b e r a l s were c r i t i c a l of t h e u r b a n l a n d m a r k e t . However, t h e y e m p h a s i z e d s o l u t i o n s f o r h o u s i n g and l a n d p r o b l e m s s u c h as p u b l i c l a n d a s s e m b l y and s e r v i c i n g a s s i s t a n c e f o r p r o v i n c i a l 98 and m u n i c i p a l g o v e r n m e n t s w h i c h t h e y hoped would i n f l u e n c e market f o r c e s . The C o n s e r v a t i v e s were, i n g e n e r a l , l e s s c r i t i c a l of t h e u r b a n l a n d m a r k e t , but d i d see a r o l e f o r government i n f l u e n c i n g market f o r c e s by i n c r e a s i n g t h e s u p p l y of s e r v i c e d l a n d and mortgage f u n d s f o r h o u s i n g . 5.2 C r i t i c s of t h e u r b a n l a n d market C r i t i c s o f t h e u r b a n l a n d market were g e n e r a l l y i n one of t h r e e g r o u p s . F i r s t , t h e L i b e r a l government and o t h e r s , t h o u g h c o n c e r n e d w i t h t h e impact of t h e u r b a n l a n d market on h o u s i n g , were s a t i s i f i e d t h a t t h e market, i f a s s i s t e d or g i v e n some d i r e c t i o n by p u b l i c a u t h o r i t i e s c o u l d o p e r a t e s a t i s f a c t o r i l y . S e c o n d , t h e r e were ur b a n r e f o r m e r s who were o p p o s e d t o some of t h e a c t i v i t i e s of t h e u r b a n d e v e l o p m e n t i n d u s t r y . They v i e w e d t h e u r b a n e n v i r o n m e n t and u r b a n d e v e l o p m e n t as b e i n g m a n i p u l a t e d f o r t h e b e n e f i t o f a s m a l l number o f d e v e l o p m e n t companies and o t h e r r e a l e s t a t e i n t e r e s t s . T h i r d , t h e r e were a number of i n d i v i d u a l s , f o r t h e most p a r t a c a d e m i c s , who o f f e r e d a more t h o r o u g h c r i t i c a l a n a l y s i s of t h e u r b a n l a n d p r o b l e m , as p a r t o f a b r o a d e r c r i t i q u e o f t h e f u n c t i o n i n g o f t h e c a p i t a l i s t economy. The f i r s t g r o u p i n c l u d e d t h e f e d e r a l M i n i s t e r s of Urban A f f a i r s . A l t h o u g h t h o s e w i t h t h i s view of t h e u r b a n l a n d m a rket a r g u e d t h a t l a n d s h o u l d be t r e a t e d as a r e s o u r c e r a t h e r t h a n as a commodity, recommendations f o r government p o l i c i e s were g e n e r a l l y measures w h i c h would not a f f e c t t h e 99 p r i v a t e commodity form of l a n d . T h i s view of u r b a n l a n d m a r k e t s was r e f l e c t e d i n t h e r ecommendations of t h e U n i t e d N a t i o n ' s C o n f e r e n c e on Human S e t t l e m e n t s . Canada h o s t e d th e c o n f e r e n c e i n V a n c o u v e r d u r i n g 1976 when r e s i d e n t i a l l a n d p r i c e i n c r e a s e s were p a r t i c u l a r l y r a p i d . In i t s f i n a l r e p o r t H a b i t a t d e l e g a t e s a r g u e d t h a t l a n d s h o u l d be c o n s i d e r e d a r e s o u r c e , r a t h e r t han a commodity: P r i v a t e l a n d o w n e r s h i p i s a l s o an i n s t r u m e n t of a c c u m u l a t i o n and c o n c e n t r a t i o n of w e a l t h and t h e r e f o r e c o n t r i b u t e s t o s o c i a l i n j u s t i c e ; i f u n c h e c k e d , i t may become a major o b s t a c l e i n t h e p l a n n i n g and i m p l e m e n t a t i o n of d e v e l o p m e n t schemes... t h e p r o v i s i o n of d e c e n t d w e l l i n g s and h e a l t h y c o n d i t i o n s f o r t h e p e o p l e can o n l y be a c h i e v e d i s l a n d i s u s e d i n t h e i n t e r e s t s of s o c i e t y as a w h o l e . ( U n i t e d N a t i o n s , 1976, p. 61 ) T hus, the. i n s t i t u t i o n o f p r i v a t e p r o p e r t y was i d e n t i f i e d as b e i n g i n c o n f l i c t w i t h t h e a c h i e v e m e n t of i m p roved h o u s i n g c o n d i t i o n s . The C a n a d i a n s u b m i s s i o n t o t h e c o n f e r e n c e , p r e p a r e d by t h e M i n i s t e r of S t a t e f o r Urban A f f a i r s , i d e n t i f i e d t h r e e p r o b l e m s w h i c h r e s u l t e d f r o m t h e t r e a t m e n t of l a n d as a commodity: 1) t h e s t e e p r i s e i n t h e p r i c e of u r b a n r e s i d e n t i a l l a n d ; 2) t h e w a s t e f u l p a t t e r n s o f u r b a n l a n d u s e ; 3) t h e c o n t i n u i n g c o n v e r s i o n of a g r i c u l t u r a l l a n d t o u r b a n u s e . (Canada, 1976, p. 50) The C a n a d i a n r e p o r t added t h a t t h e two v i t a l human s e t t l e m e n t i s s u e s were h o u s i n g and l a n d . In r e g a r d t o h o u s i n g , i t n o t e d t h a t : 1 00 th e c h a l l e n g e i s t o p r o v i d e t h e s e u n i t s a t p r i c e s t h a t more p e o p l e c a n a f f o r d and i n l o c a t i o n s and s t y l e s t h a t w i l l s a t i s f y demand w i t h o u t w a s t e f u l l a n d use p a t t e r n s . ( I b i d , p. 97) The r e p o r t c a l l e d f o r l a n d and h o u s i n g p o l i c i e s i n t h e form o f h i g h e r l a n d t a x e s t o r e c o u p some of t h e u n e a r n e d i n c r e m e n t , l o w e r m u n i c i p a l s e r v i c i n g s t a n d a r d s and h i g h e r d e n s i t y d e v e l o p m e n t . In i t s recommendations emphasis was p l a c e d on p o l i c i e s w h i c h would d i r e c t market f o r c e s t o s e r v e t h e p u b l i c i n t e r e s t : p u b l i c p o l i c y w i l l be r e q u i r e d t o s u p p o r t p o s i t i v e market f o r c e s and t o i n t e r v e n e when market p r e s s u r e s t h r e a t e n t o undermine t h e l o n g range p u b l i c i n t e r e s t . ( I b i d , p. 98) The f e d e r a l M i n i s t e r r e s p o n s i b l e f o r H o u s i n g i n t h e L i b e r a l government, B a r n e y Danson, a g r e e d t h a t l a n d s h o u l d be t r e a t e d as a r e s o u r c e r a t h e r t h a n as a commodity. In a 1976 s p e e c h a t t h e a n n u a l c o n f e r e n c e of t h e C a n a d i a n F e d e r a t i o n of Mayors and M u n i c i p a l i t i e s i n V a n c o u v e r he sa i d : I b e l i e v e t h a t we a r e moving s i g n i f i c a n t l y t o t h e view t h a t i t [ l a n d ] i s a r e s o u r c e and s h o u l d be t r e a t e d a s s u c h w i t h i n t h e c o n t e x t of our f e d e r a l s t a t e and mixed economy.(Danson, 1976, p. 4) However, when Danson a p p r o a c h e d t h e t o p i c of how t o implement " t h e l a n d a s r e s o u r c e " argument, he wi t h d r e w t o t h e a d v o c a c y of measures t h a t c l e a r l y d i d not c h a l l e n g e t h e f u n d a m e n t a l n a t u r e of t h e p r i v a t e l a n d m a r k e t . He t o l d t h e CFMM c o n f e r e n c e t h a t t o r e d u c e t h e c o s t o f r e s i d e n t i a l l a n d : i t i s e s s e n t i a l t h a t we t a k e a c t i o n t o d e v i s e new and i m p r o v e d methods o f p l a n n i n g , 101 z o n i n g s t a n d a r d s , a p p r o v a l s and t a x a t i o n by e a c h of us t h a t w i l l r e s u l t i n more and l o w e r c o s t s e r v i c e d l a n d . ( I b i d , p. 6) The s e c o n d g r o u p a r g u e d t h a t t h e o b j e c t i v e s of t h e d e v e l o p m e n t i n d u s t r y were i n c o n f l i c t w i t h t h o s e o f many homebuyers b e c a u s e t h e i n d u s t r y s o u g h t t o maximize i t s p r o f i t s by p u s h i n g up l a n d p r i c e s and c r e a t i n g o l i g o p o l i e s i n l a n d o w n e r s h i p on t h e f r i n g e of u r b a n a r e a s . T h i s g r o u p d e f i n e d t h e u r b a n l a n d p r o b l e m p r i n c i p a l l y i n t e r m s of who owned l a n d and t h e power of f i r m s and l a r g e i n v e s t o r s t o i n f l u e n c e l a n d m a r k e t s . Roweis and S c o t t c h a r a c t e r i z e d t h i s g r o u p as a d v a n c i n g a ' m a n i p u l a t e d c i t y h y p o t h e s i s ' where eco n o m i c r e l a t i o n s i n t h e h o u s i n g market a r e d i c h o t e m i z e d i n t o t h o s e between t h e e x p l o i t e r s and t h e e x p l o i t e d . ( R o w e i s , S c o t t , 1976, p. 19) The d e v e l o p e r was i d e n t i f i e d as the. v i l l a i n i n u r b a n and h o u s i n g p r o b l e m s who e x p l o i t e d t e n a n t s and homeowners by e x t r a c t i n g l a r g e p r o f i t s and r e n t s from l a n d d e v e l o p m e n t . James L o r i m e r , i n p a r t i c u l a r , • wrote numerous a r t i c l e s and a book The D e v e l o p e r s (1978) t h a t expounded t h e theme t h a t t h e u r b a n l a n d p r o b l e m was t h e e x i s t e n c e of an o l i g o p o l y i n l a n d o w n e r s h i p . A n o t h e r w i d e l y c i t e d a n a l y s t of t h e u r b a n l a n d m arket, P e t e r S p u r r s u p p o r t e d t h i s view i n h i s book, L a n d and Urban D e v e l o p m e n t , (1976) a s t u d y o r i g i n a l l y p r e p a r e d f o r CMHC. I t d e t a i l e d t h e l a n d h o l d i n g s o f d e v e l o p m e n t c o m p a n i e s a r o u n d m a j o r C a n a d i a n c i t i e s and c o n c l u d e d t h a t i n most m a r k e t s a l i m i t e d number of c o m p a n i e s c o n t r o l l e d t h e l a n d f o r f u t u r e r e s i d e n t i a l d e v e l o p m e n t . ( S p u r r , 1976, p. 22) F o r example, S p u r r n o t e d 1 02 t h a t i n t h e T o r o n t o r e g i o n 6 d e v e l o p m e n t c o m p a n i e s owned 76.7% of t h e d e v e l o p a b l e l a n d on t h e u r b a n f r i n g e . T h i s c o n c e r n f o r t h e c o n c e n t r a t i o n of l a n d o w n e r s h i p was a l s o r e f l e c t e d i n p o l i c y - m a k e r s a t CMHC. W i l l i a m T e r o n , P r e s i d e n t of CMHC d u r i n g t h e mid-1970's, t o l d t h e F i n a n c i a l P o s t t h a t t h i s c o n c e n t r a t i o n o f o w n e r s h i p was a major p r o b l e m and t h a t p u b l i c l a n d a s s e m b l i e s were one measure w h i c h c o u l d combat t h e p r o b l e m . ( F i n a n i c i a l P o s t , March, 6, 1976) James L o r i m e r a l s o a d v a n c e d t h e theme t h a t t h e p l a n n i n g p r o f e s s i o n , f o r t h e most p a r t , p l a y e d an i m p o r t a n t r o l e i n a d v a n c i n g t h e i n t e r e s t s of t h e d e v e l o p m e n t i n d u s t r y . F o r example, a t t h e 1973 N a t i o n a l C a n a d i a n I n s t i t u t e of P l a n n e r s C o n f e r e n c e i n C h a r l o t t e t o w n , L o r i m e r t o l d p l a n n e r s t h a t t h e y were not r e l e c t i n g t h e d i v e r s e i n t e r e s t s of u r b a n r e s i d e n t s . He a r g u e d t h a t p l a n n e r s : have e n d e a v o u r e d t o a c q u i r e p r o f e s s i o n a l , i n t e l l e c t u a l and s o c i e t a l c r e d i b i l i t y t h r o u g h t h e e s t a b l i s h m e n t of a p r o f e s s i o n a l o r g a n i z a t i o n imbued w i t h a p h i l o s o p h y of e l i t i s m , c o n s e r v a t i s m and s e l f -p r e s e r v a t i o n . ( C i t e d i n C l a r k , 1976, p. 19) He c a l l e d f o r b e t t e r p o l i c i e s and more p l a n n e r s a d v o c a t i n g t h e i n t e r e s t s of homeowners and t e n a n t s r a t h e r t h a n a d v a n c i n g t h e i n t e r e s t s of t h e l a n d d e v e l o p m e n t i n d u s t r y . A t h i r d g r o u p was p r i m a r i l y d e s c r i p t i v e , r a t h e r t h a n p r e s c r i p t i v e o f u r b a n l a n d p r o b l e m s . The u r b a n l a n d p r o b l e m , t h e y a r g u e d , went beyond a c o n c e r n f o r t h e c o n c e n t r a t i o n of l a n d o w n e r s h i p and t h e p o s s i b l e m a n i p u l a t i o n o f u r b a n d e v e l o p m e n t f o r t h e b e n e f i t o f t h e d e v e l o p m e n t i n d u s t r y . T h i s t h i r d g r o u p p o i n t e d t o t h e s t r u c t u r a l d y n a m i c s of t h e 1 03 l a n d m a r k e t : t h e p o i n t of d e p a r t u r e i s not t h e phenomena of c o m p e t i t i v e b i d d i n g f o r l a n d , but t h e deep s t r u c t u r e of u r b a n p r o p e r t y r e l a t i o n s i n r e l a t i o n t o w h i c h t h e c o m p e t i t i v e b i d d i n g f o r l a n d i s o n l y t h e f a i n t e s t and most s u p e r f i c i a l p u l s a t i o n . ( R o w e i s and S c o t t , 1976, p. 36) Roweis and S c o t t l o c a t e t h e p r o c e s s of u r b a n d e v e l o p m e n t and t h e u r b a n l a n d p r o b l e m i n t h e c o n t e x t of c a p i t a l a c c u m u l a t i o n and c l a s s s t r u g g l e s i n c a p i t a l i s t e c o n o m i e s . They i d e n t i f y t h e u r b a n l a n d p r o b l e m i n t h i s way: C a p i t a l i s t s o c i a l and p r o p e r t y r e l a t i o n s c r e a t e two major c o n t r a d i c t o r y t e n d a n c i e s a r o u n d the i s s u e of u r b a n l a n d . On t h e one hand, t h e l o g i c of commodity p r o d u c t i o n and t h e p r i v a t e a p p r o p r i a t i o n o f p r o f i t c a l l f o r f u n c t i o n a l l y e f f i c i e n t u r b a n l a n d use p a t t e r n s . On t h e o t h e r hand, the p r i v a t e o w n e r s h i p and c o n t r o l of u r b a n l a n d l e a d t o a t e n d e n c y away from s u c h e f f i c i e n c y . ( R o w e i s and S c o t t , 1981, p. 146) They a r g u e d t h a t t h e s t a t e ' s 19th c e n t u r y s t r a t e g y of l a i s s e z f a i r e i n u r b a n d e v e l o p m e n t gave way t o t h e i n t e r v e n t i o n i s m of the 1930's w h i c h b l o s s o m e d d u r i n g t h e 1950's i n t o t h e w e l f a r e s t a t e . I t was a s t r a t e g y p r e d i c a t e d upon t h e f a i t h t h a t an a g r e s s i v e s t a t e e f f o r t t o s u p p o r t and s t r e n g t h e n a network of p r o p u l s i v e e c onomic a c t i v i t i e s c o u l d s e c u r e c o n t i n u e d smooth economic g r o w t h . I t was a s s o c i a t e d w i t h an e x t r a o r d i n a r y e x p a n s i o n of u r b a n and r e g i o n a l d e v e l o p m e n t p r o j e c t s . ( R o w e i s and S c o t t , 1976 p. 58) B a r k e r e t a l . e x p l a i n e d government i n t e r v e n t i o n i n h o u s i n g as n o t s i m p l y t h e r e s u l t o f t h e need t o promote c a p i t a l a c c u m u l a t i o n , but a l s o as one r e s u l t of t h e s t r u g g l e between c l a s s e s i n c a p i t a l i s t s o c i e t i e s . 1 04 The government f u n c t i o n i n h o u s i n g i s a l s o t o r e l i e v e c a p i t a l i s m of some of i t s most a c u t e s o c i a l t e n s i o n s . ( B a r k e r e t a l , 1973, p. 94) T h i s g r o u p a r g u e s t h a t the t e n s i o n s g e n e r a t e d between l a b o u r and c a p i t a l t h r o u g h th e s t r u g g l e o v e r t h e l e v e l o f wages and p r o f i t s a r e t r a n s l a t e d t o t h e h o u s i n g s e c t o r e s p e c i a l l y when wage e a r n e r s c a n n o t a f f o r d h o u s i n g . Government a t t e m p t s t o r e s p o n d t o t h i s p r o b l e m but a d o p t i n g p o l i c i e s w h i c h w i l l make h o u s i n g more amenable and a f f o r d a b l e . ( I b i d , p. 94) T h ese t h r e e g r o u p s of l a n d market c r i t i c s have d i f f e r e d i n t h e c o u r s e s o f a c t i o n t h a t t h e y have s u g g e s t e d f o r u r b a n l a n d p o l i c y . The f i r s t g r o u p a r g u e d t h a t t h e m a r k e t s h o u l d , f o r t h e most p a r t , be l e f t i n t a c t . The f e d e r a l h o u s i n g m i n i s t e r s , Ron B a s f o r d and B a r n e y Danson, t h o u g h c r i t i c a l of t h e m a r k e t , f e l t t h a t g r e a t e r l a n d use c o n t r o l m e a s u r e s , p u b l i c l a n d a s s e m b l y and t a x a t i o n measures would r e d u c e the w o r s t e x c e s s e s of t h e u r b a n l a n d m a r k e t . ( D a n s o n , 1973, pp„ 4-6; B a s f o r d , 1973, pp. 11-12) Such measures, a c c o r d i n g t o B a s f o r d : would e n s u r e u r b a n l a n d m a r k e t s o p e r a t e e f f e c t i v e l y i n t h e p u b l i c i n t e r e s t . . . t o e n s u r e t h a t t h e y a r e o p e r a t i n g f r e e l y and e f f i c i e n t l y . ( B a s f o r d , 1973, p. 12) In 1976 Danson a p p e a r e d t o a g r e e w i t h t h o s e a r g u i n g t h a t l a n d l a n d was be t r e a t e d as a r e s o u r c e , n o t a commodity. However, the l a n d p o l i c i e s he e v e n t u a l l y recommended were no d i f f e r e n t t h a n t h o s e p u r s u e d i n t h e p a s t : some government l a n d a s s e m b l y , improved l a n d use r e g u l a t i o n a n d l o a n s t o m u n i c i p a l i t i e s f o r i n f r a s t r u c t u r e . 1 05 The s e c o n d g r o u p recommended more e x t e n s i v e a p p l i c a t i o n of t h e p o l i c i e s p r o p o s e d by t h e f i r s t g r o u p . F o r example, l a n d on t h e urban f r i n g e t h a t was t o be d e v e l o p e d f o r h o u s i n g would be p r e d o m i n a n t l y p u b l i c l y o w n e d . ( S p u r r , 1976, p. 392; L o r i m e r , 1978, p. 254) As Spur e x p l a i n s : i t w o u l d be b e n e f i c i a l , i f urban g r o w t h must c o n t i n u e , t o c o n f i n e s p a t i a l e x p a n s i o n t o l a r g e p u b l i c l y owned s i t e s s e l e c t e d on t h e b a s i s of e n v i r o n m e n t a l p r o t e c t i o n . ( S p u r r , 1976, p. 393) Former T o r o n t o Mayor John S e w e l l , i n a greement w i t h S p u r r , a r g u e d t h a t t h e b e s t a p p r o a c h t o c o n t r o l l i n g s u b u r b a n l a n d p r i c e s i s t o a l l o w g o v e r n m e n t s t o e x p r o p r i a t e a l l l a n d needed f o r u r b a n d e v e l o p m e n t . ( S e w e l l , 1977, p. 54) T hese l a n d p o l i c i e s , S e w e l l , L o r i m e r , S p u r r and o t h e r s a r g u e d , would a v o i d t h e m a n i p u l a t i o n o f t h e u r b a n l a n d market by t h e l a r g e i n t e g r a t e d d e v e l o p m e n t c o r p o r a t i o n s s u c h a s C a d i l l a c -F a i r v i e w and G e n s t a r . The n e o - m a r x i s t s e m p h a s i z e the l i m i t a t i o n s o f s u c h l a n d p o l i c i e s as l a n d use p l a n n i n g . They a r g u e t h a t s u c h measures a r e i n c a p a b l e of c h a l l e n g i n g t h e p r e v a i l i n g s o c i a l and e c onomic s t r u c t u r e s of c a p i t a l i s t s o c i e t y i n c l u d i n g t h a t o f p r i v a t e l a n d o w n e r s h i p . A c c o r d i n g t o S c o t t and Roweis, l a n d p o l i c y : d oes n o t , and c a n n o t , t r a n s c e n d t h e s o c i a l and p r o p e r t y r e l a t i o n s of c a p i t a l i s t s o c i e t y , but i s c o n s t r a i n e d w i t h i n and and i s a r e f l e c t i o n of t h o s e same r e l a t i o n s . ( R o w e i s and S c o t t , 1977, p. 50) They a r g u e t h a t l a n d use r e g u l a t i o n has been s u p p o r t i v e of t h e u r b a n l a n d m a r k e t . F o r example, t h e y c o n c l u d e d t h a t i n 1 06 most c a s e s t h e s e r e g u l a t i o n s and o t h e r l e g a l r e s t r i c t i o n s have been s i g n i f i c a n t l y d u r a b l e i n c a s e s where l a n d p r i c e s a r e r a i s e d o r a t l e a s t s t a b i l i z e d . ( I b i d , p. 13) 5.3 The Land M a r k e t D e f e n d e d In r e s p o n s e t o t h e c r i t i c i s m of t h e l a n d market a g r o u p of c o n v e n t i o n a l e c o n o m i s t s began a c t i v e l y d e f e n d i n g t h e l a n d market as a n e c e s s a r y and e f f i c e i n t i n s t i t u t i o n . E c o n o m i s t s s u c h as D a v i d B a x t e r , A. D e r k o w s k i , L. M a r t i n and L. B. S m i t h were p r o m i n e n t i n t h i s g r o u p . I t i s n o t a b l e t h a t t h e 1978 F e d e r a l - P r o v i n c i a l T a s k F o r c e on t h e S u p p l y and P r i c e of S e r v i c e d L a n d a l s o a d o p t e d t h i s view i n d e f e n d i n g t h e l a n d m arket and t h e s p e c u l a t o r ' s r o l e i n t h e h o u s i n g s e c t o r . The l i t e r a t u r e from t h i s p e r i o d d e f e n d i n g t h e u r b a n l a n d market c a n be d i v i d e d i n t o two g r o u p s . F i r s t , some a n a l y s t s f o c u s e d on e x p l a i n i n g how and why t h e l a n d market was t h e b e s t mechanism f o r t h e e f f i c i e n t a l l o c a t i o n o f l a n d t o v a r i o u s u s e s . A s e c o n d g r o u p of commentators a r g u e d t h a t government l a n d and h o u s i n g p o l i c i e s were p r i m a r i l y t h e c a u s e of h i g h l a n d p r i c e s . The f i r s t g r o u p a r g u e d t h a t t h e b e s t mechanism f o r t h e use and d i s t r i b u t i o n of l a n d was t h e u r b a n l a n d m a r k e t . They a r g u e d t h a t t h e r e was no mechanism w h i c h c o u l d r e p l a c e i t . Many o f t h o s e h o l d i n g t h i s v i e w p u b l i s h e d t h e i r f i n d i n g s i n t h e F r a s e r I n s t i t u t e book, P u b l i c P r o p e r t y : The H a b i t a t D e b a t e R e v i s i t e d ( 1 9 7 7 ) . D a v i d Nowlan i n t h e f i r s t a r t i c l e of t h i s p u b l i c a t i o n a r g u e d t h a t : c r i t i c s of t h e l a n d market a r e r e a l l y c r i t i c s of t h e e x i s t i n g d i s t r i b u t i o n of 107 w e a l t h and have l i t t l e i f any c o n c e p t of s o c i e t y ' s c o n t i n u i n g need f o r mechanisms by w h i c h l a n d u s e s and d e v e l o p m e n t t i m i n g w i l l be d e t e r m i n e d . ( N o w l a n , 1977, p. 29) No.wlan c o n c e d e d t h a t t h e r e were s i t u a t i o n s where government i n t e r v e n t i o n was n e c e s s a r y . However, he c o n c l u d e d t h a t i n most s i t u a t i o n s t h e market was t h e most e f f i c i e n t mechanism f o r t h e use and d i s t r i b u t i o n of l a n d . I m m e d i a t e l y f o l l o w i n g t h e .1970's boom i n h o u s i n g and l a n d p r i c e s f e d e r a l and p r o v i n c i a l governments i n Canada a p p o i n t e d a Task F o r c e t o examine t h e s u p p l y and p r i c e of s e r v i c e d u r b a n l a n d . The m a j o r i t y o f t h e c o n t r i b u t e r s t o t h i s s t u d y were c o n v e n t i o n a l e c o n o m i s t s who had i n t h e p a s t d e f e n d e d t h e o p e r a t i o n of t h e u r b a n l a n d m a r k e t . E s t a b l i s h e d i n 1977, t h e F e d e r a l - P r o v i n c i a l Task F o r c e on t h e S u p p l y and P r i c e o f S e r v i c e d Land was g i v e n t h e mandate: t o examine t h e s u p p l y and p r i c e of s e r v i c e d l a n d i n o r d e r t o r e p l a c e t h e t a n g l e of c o m p e t i n g c l a i m s and p o l e m i c s w i t h f a c t u a l i n f o r m a t i o n and a n a l y s i s . ( T a s k F o r c e , 1978, p. 2) In t h e Task F o r c e ' s f i n a l r e p o r t t h e r a p i d r i s e i n l a n d p r i c e s d u r i n g t h e 1970's was a t t r i b u t e d t o s u c h f a c t o r s as i n c r e a s e s i n h o u s e h o l d income and h o u s e h o l d f o r m a t i o n . The Task F o r c e c o n c l u d e d t h a t t h e r e was no major u r b a n l a n d p r o b l e m s w h i c h c o n t r i b u t e d t o t h e r i s e i n l a n d p r i c e s d u r i n g t h e mid-1970's. The s u r g e i n l a n d p r i c e s , t h e y a r g u e d , c o u l d be a c c o u n t e d f o r by u n u s u a l l y h i g h demand and t h e l i m i t e d a b i l i t y o f government t o r e s p o n d . T h e i r r e p o r t recommended s o l u t i o n s w hich would i n c r e a s e t h e s u p p l y of r e s i d e n t i a l l o t s and h o u s i n g . 1 08 To p e r m a n e n t l y r e d u c e t h e p r i c e of l a n d i n t h e f a c e of s t r o n g demand, i t w i l l be n e c e s s a r y f o r p l a n n e r s and m u n i c i p a l i t i e s t o p e r m a n e n t l y i n c r e a s e t h e r a t e a t w h i c h l o t s a r e p r o d u c e d . ( I b i d , p. 186) F o r example, t h e y u r g e d g o v e r n m e n t s t o p u c h a s e l a n d d u r i n g s o f t m a r k e t s when l a n d p r i c e s were low. In a d d i t i o n , t h e y c a l l e d f o r m u n i c i p a l p o l i c i e s w h i c h would not be o v e r l y r e s t r i c t i v e o f u r b a n e x p a n s i o n . ( I b i d , p. 187) D e f e n d e r s o f t h e l a n d m arket a l s o a c t i v e l y s u p p o r t e d t h e r o l e o f l a n d s p e c u l a t o r s i n t h e u r b a n d e v e l o p m e n t p r o c e s s . U n i v e r s i t y of W a t e r l o o P l a n n i n g P r o f e s s o r , L a r r y M a r t i n a r g u e d t h a t l a n d d e a l e r s p r e f o r m e d an i m p o r t a n t t a s k by a b s o r b i n g a l a r g e amount of r i s k and u n c e r t a i n t y i n t h e l a n d c o n v e r s i o n p r o c e s s . He a l s o n o t e d t h a t by b i d d i n g up t h e p r i c e of l a n d s p e c u l a t o r s were c o m m u n i c a t i n g a l t e r n a t i v e l a n d use p o s s i b i l i t i e s t o e x i s i t n g d e v e l o p m e n t . In a d d i t i o n , a c c o r d i n g t o M a r t i n , s p e c u l a t o r s i n c r e a s e d t h e s u p p l y of s e r v i c e d l a n d by a s s e m b l i n g l a n d f o r d e v e l o p m e n t and r a t i o n i n g i t t o i t s most e f f i c i e n t use i n an economic s e n s e . ( M a r t i n , 1974, pp. 10-12) The F e d e r a l - P r o v i n c i a l T a s k F o r c e a l s o q u e s t i o n e d t h e c r i t i c i s m of t h e s p e c u l a t o r ' s r o l e i n t h e u r b a n l a n d m a r k e t . I t n o t e d t h a t : p r o v i d e d t h e r e a r e enough s p e c u l a t o r s i n a m a rket t o e n s u r e t h a t s p e c u l a t i o n i s a c o m p e t i t i v e a c t i v i t y , i t i s not c l e a r why l a n d s p e c u l a t i o n s h o u l d c a r r y s u c h a n e g a t i v e c o n n o t a t i o n . ( F e d e r a l - P r o v i n c i a l Task F o r c e , 1978, p. 54) I t was a d d e d t h a t l a n d s p e c u l a t o r s c o u l d p r e f o r m a 109 s t a b i l i z i n g i n f l u e n c e i n t h e l a n d m a r k e t . In r e s p o n s e t o c l a i m s of o l i g o p o l i e s i n l a n d o w n e r s h i p , two U n i v e r s i t y of Western O n t a r i o e c o n o m i s t s , Markusen and S c h e f f m a n , s o u g h t t o p r o v e t h a t t h i s was not t h e c a s e . In t h e i r s t u d y o f t h e r e s i d e n t i a l l a n d market on t h e f r i n g e of T o r o n t o t h e y c o n c l u d e d t h a t t h e r e was not an o l i g o p o l y i n l a n d o w n e r s h i p i n the T o r o n t o l a n d m a r k e t . However, t h e y d i d c o n c e d e t h a t t h e i r s t u d y o n l y c o n s i d e r e d t h e T o r o n t o r e g i o n and t h a t market c o n c e n t r a t i o n m ight e x i s t i n o t h e r c i t i e s . ( S c h e f f m a n and Markusen, 1977 p. 130) A n o t h e r d e f e n c e of l a n d market was c r i t i c a l o f p u b l i c p o l i c y . I t was a r g u e d t h a t s u c h l a n d p o l i c i e s a s l a n d use p l a n n i n g , h i g h r e s i d e n t i a l s e r v i c i n g s t a n d a r d s and p u b l i c l a n d b a n k i n g p r e v e n t e d t h e market from p r e f o r m i n g e f f i c i e n t l y . The blame f o r h i g h l a n d p r i c e s was p l a c e d on th e impact and c o s t o f government i n t e r v e n t i o n . They c r i t i c i z e d m u n i c i p a l l a n d use p l a n n i n g p u b l i c l a n d b a n k i n g and t h e s e r v i c i n g s t a n d a r d s of m u n i c i p a l g o v e r n m e n t s . A n a l y s t s s u c h as M a r t i n , D e r k o w s k i , Markusen and S c h e f f m a n c o m p l a i n e d t h a t much of t h e urb a n l a n d p r i c e i n c r e a s e s were due t o government p o l i c i e s . F o r example, L a r r y M a r t i n w r o t e t h a t : i t i s our c h r o n i c f a i l u r e t o make a s u p p l y o f r e a s o n a b l y p r i c e d s e r v i c e d l a n d i n t h e p r o p e r l o c a t i o n and a t t h e a p p r o p r i a t e t i m e t h a t c o n s t i t u t e s a b a s i s of t h e urb a n l a n d p r i c e p r o b l e m t o d a y . B e c a u s e of i t s i m p o r t a n t r o l e i n t h e s u p p l y o f s e r v i c e d l a n d f o r urban u s e , government must s h a r e i n t h e r e s p o n s i b i l i t y f o r l a n d s h o r t a g e s and h i g h p r i c e s . ( M a r t i n , 1977, p. 41) 1 1 0 G e n s t a r , one of Canada's l a r g e s t d e v e l o p m e n t c o m p a n i e s was a l s o c r i t i c a l of p u b l i c l a n d a s s e m b l i e s a r g u i n g t h a t : t h e r e i s a b e t t e r way t o i n v e s t t h e same m i l l i o n d o l l a r s o t h e r t h a n i n p u b l i c l a n d a s s e m b l i e s . . . p e r h a p s t h e s e p u b l i c f u n d s s h o u l d be i n v e s t e d i n t h e t r u n k s e r v i c e s t h a t make s e r v i c e d l o t s p o s s i b l e . ( G e n s t a r , 1978, p. 12) T h ese c r i t i c s of l a n d p o l i c y assumed t h a t t h e p r o p e r r o l e f o r government i n u r b a n d e v e l o p m e n t was t h e p r o v i s i o n o f u r b a n i n f r a s t r u c t u r e t o e n a b l e p r i v a t e l a n d d e v e l o p m e n t and a minimum of government r e g u l a t i o n . D e r k o w s k i , i n a r e p o r t p r e p a r e d f o r HUDAC, c o n c l u d e d t h a t r i s i n g l a n d p r i c e s had r e s u l t e d from th e o v e r l y l o n g s u b d i v i s i o n a p p r o v a l p r o c e s s e s and h i g h l o t l e v i e s and m u n i c i p a l s e r v i c i n g s t a n d a r d s . He a n a l y z e d t h e i n c r e a s e i n t h e p r i c e s of s i n g l e f a m i l y d e t a c h e d l o t s ' i n t e n m e t r o p o l i t a n c e n t r e s from 1964 t o 1974 i n r e g a r d t o s i x components: raw l a n d , s e r v i c i n g , m u n i c i p a l l e v i e s , c a r r y i n g c h a r g e s , c o n s u l t a n t s f e e s and p r o f i t s . He c o n c l u d e d t h a t t h e m a j o r r e a s o n why l a n d c o s t s had r i s e n was: t h e p r e s e n c e i n t h e p l a n n i n g c o n t r o l s y s t e m of s e v e r a l p a r t i e s w i t h v a l i d r e a s o n s of t h e i r own f o r s t o p p i n g , l i m i t i n g and d e l a y i n g d e v e l o p m e n t , and t h e a b s e n c e of any c o u n t e r v a i l i n g f o r c e w i t h a p o s i t i v e i n t e r e s t i n h o u s i n g . ( D e r k o w s k i , 1974, p. 3) He a r g u e d t h a t l a n d use r e g u l a t i o n s were a d o p t e d w i t h no r e f e r e n c e t o t h e t o t h e c o s t t h a t t h e y imposed on t h e d e v e l o p m e n t o f h o u s i n g . Government r e g u l a t o r s , u n l i k e t h o s e i n t h e p r i v a t e market where not e n c o u r a g e d by t h e f o r c e s of s u p p l y and demand t o keep c o s t s t o a minimum. 111 A s e c o n d p r o b l e m i d e n t i f i e d by D e r k o w s k i was m u n i c i p a l p o l i c i e s t h a t s e t h i g h s e r v i c i n g s t a n d a r d s and m u n i c i p a l lot. l e v i e s . He a r g u e d t h a t : t h e manner i n w h i c h s e r v i c i n g s t a n d a r d s and l e v i e s a r e s e t . . . a r e t o t a l l y d i v o r c e d , i n most c a s e s , from any r e s p o n s i b i l i t y f o r t h e i r c a p i t a l c o s t . ( I b i d , p. 4) D e r k o w s k i recommended t h a t m u n i c i p a l i t i e s , when a d o p t i n g s e r v i c i n g s t a n d a r d s , l o t l e v i e s o r a p p r o v i n g s u b d i v i s i o n s , s h o u l d c o n s i d e r t h e i n t e r e s t s of t h e h o u s i n g consumer by •seeking t o m a x i m i z e t h e s u p p l y o f h o u s i n g . ( I b i d , p. 7) By t h e 1960's and 1970's l a n d use r e g u l a t i o n , e s p e c i a l l y s u b i d i v i s i o n r e g u l a t i o n s , were i n p l a c e i n most m u n i c i p a l i t i e s as t h e p r e - W o r l d War II p l a n n e r s had u r g e d . L a n d p r i c e s , however, were s t i l l v e r y h i g h and s p e c u l a t i o n s t i l l rampant. The " s o l u t i o n " of t h e e a r l y p l a n n e r s t u r n e d o u t t o be d e f i n e d as " t h e p r o b l e m " by c o n v e n t i o n a l a n a l y s t s d u r i n g t h e 1970's boom. 5.4 Government r e s p o n s e s t o t h e u r b a n l a n d p r o b l e m W i t h g e n e r a l agreement t h a t r i s i n g r e s i d e n t i a l l a n d p r i c e s were r e s u l t i n g i n a number of h o u s i n g p r o b l e m s , g o v e r n m e n t s i n i t i a t e d a v a r i e t y a measures d i r e c t e d a t u r b a n l a n d . T h e s e i n c l u d e d i n c r e a s e d f u n d i n g f o r p u b l i c l a n d b a n k i n g and r e s i d e n t i a l i n f r a s t r u c t u r e , t h e 1973 amendments t o t h e N a t i o n a l H o u s i n g A c t and O n t a r i o ' s l a n d s p e c u l a t i o n t a x . 1 1 2 The 1973 N. H. A. Amendments - In 1973 t h e L i b e r a l government d i d not h o l d a m a j o r i t y of s e a t s i n t h e House of Commons. B e c a u s e a l l p a r t i e s a g r e e d t h a t t h e r e was an u r b a n l a n d p r o b l e m c o n t r i b u t i n g t o t h e u n a f f o r d a b i 1 i t y of h o u s i n g , t h e l i b e r a l government moved t o i n i t i a t e a l e n g t h y agenda of h o u s i n g programmes. The new amendments i n c l u d e d i n c r e a s e d a s s i s t a n c e f o r n o n - p r o f i t and c o - o p e r a t i v e h o u s i n g , a n e i g h b o u r h o o d improvement programme, i n c r e a s e d home o w n e r s h i p a s s i s t a n c e f o r low income f a m i l i e s , a r e s i d e n t i a l r e h a b i l i t a t i o n programme and i n c r e a s e d a s s i s t a n c e f o r p u b l i c l a n d b a n k i n g and i n f r a s t r u c t u r e . A d e q u a t e and a f f o r d i b l e h o u s i n g was, i n t h e go v e r n m e n t ' s e y e s , a b a s i c r i g h t o f a l l C a n a d i a n s . Ron B a s f o r d , t h e L i b e r a l M i n i s t e r r e s p o n s i b l e f o r h o u s i n g t o l d t h e House t h a t : good h o u s i n g a t a r e a s o n a b l e c o s t i s a s o c i a l r i g h t of e v e r y c i t i z e n of t h i s c o u n t r y . ( B a s f o r d , 1973, p. 2257) A t t e m p t i n g t o p r o v i d e h o u s i n g a t a r e a s o n a b l e c o s t f o r a l l C a n a d i a n s r e q u i r e d some a t t e n t i o n t o t h e u r b a n l a n d p r o b l e m . B a s f o r d p r o p o s e d an immediate $100 m i l l i o n u r b a n p u b l i c l a n d b a n k i n g programme as a c o n c e r t e d a t t a c k on r i s i n g l a n d p r i c e s . He e x p l a i n e d t h a t t h e p u b l i c l a n d b a n k i n g programme would be combi n e d w i t h c o m p r e h e n s i v e l a n d use p l a n n i n g t o e n s u r e t h a t t h e b e n e f i t s o f l a n d p u r c h a s e s were m a x i m i z e d . A c c o r d i n g t o B a s f o r d , l a n d would be p u r c h a s e d w i t h t h e o b j e c t i v e of making e f f e c t i v e i n t e r v e n t i o n s i n t h e l a n d market as an a t t e m p t t o l o w e r l a n d p r i c e s . ( I b i d , p. 2258) C o n s e r v a t i v e H o u s i n g c r i t i c , E l d o n Wooliams a t t a c k e d 1 1 3 th e L i b e r a l ' s p r o p o s a l as not b e i n g enough t o c o n f r o n t t h e p r o b l e m of r i s i n g l a n d p r i c e s . The most i m p o r t a n t t h i n g i s t o g e t s e r v i c e d l a n d r e a d y f o r d e v e l o p m e n t r a t h e r t h a n raw l a n d . The $100 mi 11 i o n [ a l l o c a t e d f o r l a n d b a n k i n g ] w i l l n o t l a s t l o n g c o n s i d e r i n g t h e h i g h c o s t o f s e r v i c e d l a n d . ( I b i d , p. 2274) Wooliams a r g u e d t h a t t h e s o l u t i o n was i n c r e a s i n g t h e s u p p l y of s e r v i c e d l a n d and e n s u r i n g t h a t l a n d was b r o u g h t i n t o use as q u i c k l y a s p o s s i b l e . B r o a d b e n t , a g r e e i n g w i t h Wooliams, t o l d t h e House t h a t , t h o u g h he a g r e e d w i t h t h e programme, t h e f u n d i n g l e v e l s were not s u f f i c i e n t . B r o a d b e n t s a i d : i t w i l l n ot p ut a s t o p t o s p i r a l l i n g l a n d p r i c e s . I t doe s n o t p r o m i s e t o p r o v i d e t h e l e v e l of s u p p o r t needed t o ea s e t h e b u r d e n of p r i c e i n c r e a s e s , l e t a l o n e s o l v e t h e h o u s i n g p r o b l e m . ( I b i d , p. 2280)-A n o t h e r N.D.P. member from T o r o n t o , John G i l b e r t , p o i n t e d t o t h e l a n d o w n e r s h i p q u e s t i o n as b e i n g a t t h e b a s i s o f h o u s i n g p r o b l e m s . He a r g u e d t h a t t h e p r o p o s e d h o u s i n g p o l i c y d i d n ot c o n f r o n t t h i s q u e s t i o n b e c a u s e : f i r s t of a l l , t h e s u p p l y o f h o u s e s i n Canada has been d i c t a t e d by t h e l a n d d e v e l o p e r s , t h e b u i l d e r s and t h e f i n a n c i a l i n s t i t u t i o n s . T h i s r e a l l y i s t h e major c r i t i c i s m o f h o u s i n g p o l i c y t o d a y . ( I b i d , p.2276) As t h e N.D.P. p o i n t e d o u t , an expanded l a n d a s s e m b l y programme w i t h a $100 m i l l i o n a l l o c a t i o n was a l i m i t e d a p p r o a c h t o t h e u r b a n l a n d p r o b l e m . I t d i d l i t t l e t o c o n f r o n t t h e p r o b l e m o f l a n d s u p p l y and l a n d o w n e r s h i p . D e s p i t e g e n e r a l a greement among t h e p a r t i e s t h a t r i s i n g l a n d p r i c e s were a major p r o b l e m , government l a n d p o l i c i e s d i d 1 1 4 not e x t e n d beyond t h o s e measures i n i t i a t e d i n t h e p a s t . O n t a r i o ' s Land S p e c u l a t i o n Tax. - W i t h g e n e r a l agreement i n government c i r c l e s t h a t l a n d s p e c u l a t i o n was an i m p o r t a n t c a u s e of h i g h l a n d p r i c e s , t h e O n t a r i o government i n 1975 i n t r o d u c e d a Land S p e c u l a t i o n Tax. I t was t h e f i r s t of i t s k i n d i n Canada. A c c o r d i n g t o John W h i t e , O n t a r i o p r o v i n c i a l t r e a s u r e r , i t would " r e d u c e t h e e s c a l a t i o n of l a n d and h o u s i n g p r i c e s " by d i s c o u r a g i n g s p e c u l a t i o n and " r e c o v e r f o r t h e p u b l i c a major s h a r e of w i n d f a l l g a i n s f r o m l a n d s p e c u l a t i o n " . ( P r o v i n c e of O n t a r i o , 1975, p. 6) T h i s was t h e f i r s t e f f o r t of a p r o v i n c i a l government t o c o l l e c t a b e t t e r m e n t t a x t o c a p t u r e some of t h e l a n d v a l u e i n c r e a s e s c r e a t e d by g e n e r a l e conomic g r o w t h . The. t a x was o r i g i n a l l y s e t a t t h e r a t e of 50 p e r c e n t . B e c a u s e i t was not a l l o w e d a s a d e d u c t i o n i n t h e c a l c u l a t i o n of f e d e r a l income or c a p i t a l g a i n t a x e s , i t was r e d u c e d t o 20 p e r c e n t . The t a x e x c l u d e d t h e f o l l o w i n g p r o p e r t i e s : 1 ) a p r i n c i p a l r e s i d e n c e or v a c a t i o n p r o p e r t y ; 2) a d e v e l o p e d i n d u s t r i a l or c o m m e r c i a l p r o p e r t y ; 3) a farm p r o p e r t y owned f o r more t h a n 10 y e a r s ; 4) a r e s i d e n t i a l i n v e s t m e n t p r o p e r t y owned by t h e t r a n f e r r o r f o r a t l e a s t 10 y e a r s and c o n t a i n i n g a s t r u c t u r e w o r t h a t l e a s t 40 p e r c e n t of t h e t o t a l v a l u e . ( S m i t h , 1976, p. 2) Many e c o n o m i s t s were v e r y c r i t i c a l of t h e t a x a r g u i n g t h a t i t i n t e r f e r e d w i t h t h e f r e e o p e r a t i o n of t h e u r b a n l a n d 1 1 5 m a r k e t . L. B. S m i t h , a U n i v e r s i t y o f T o r o n t o e c o n o m i c s p r o f e s s o r w r o t e t h a t : t h e b e n e f i t s from r e d u c i n g d e s t a b i l i z i n g b e h a v i o u r a r e t e m p o r a r y i n t h e s e n s e t h a t t h e d e s t a b i l i z i n g b e h a v i o u r would l i k e l y have been c u r t a i l e d e v e n t u a l l y by normal market p r e s s u r e s . ( I b i d , p. 11) Sc h e f f m a n and Markusen, i n agreement w i t h S m i t h , n o t e d t h a t t h e impact of t h e t a x would, i n t h e l o n g term, be u n d e s i r e a b l e b e c a u s e i t c o u l d l e a d t o a l e s s e f f i c i e n t l a n d a s s e m b l y p r o c e s s and make c o n c e n t r a t i o n s i n l a n d o w n e r s h i p more 1 i k e l y . ( M a r k u s e n and S c h e f f m a n , 1977, p. 128) The O n t a r i o t a x was l i m i t e d , f o r t h e most p a r t , t o t h e t a x a t i o n of l a n d v a l u e g a i n s on l a n d s a r o u n d t h e f r i n g e o f urba n c e n t r e s t h a t were g e n e r a l l y t h e o b j e c t of most i n t e r e s t f o r l a n d s p e c u l a t o r s . However, t h e t a x was n o t e f f e c t i v e a s a b e t t e r m e n t l e v y b e c a u s e i t c o l l e c t e d l e s s t h a n 5% of t h e u n e a r n e d i n c r e m e n t i n l a n d v a l u e i n c r e a s e s . T h i s was due t o t h e method of c a l c u l a t i o n w h i c h a l l o w e d f o r numerous d e d u c t i o n s . F o r example, d u r i n g t h e f i r s t s i x months of i t s e x i s t e n c e , l e s s t h a n $150,000 was c o l l e c t e d compared w i t h an o r i g i n a l e s t i m a t e o f $25 m i l l i o n of a n n u a l r e v e n u e ( M a c k e n z i e , 1974, p. 36) D e s p i t e t h e l o n g h i s t o r y of p r o p o s a l s f o r l a n d t a x e s , t h e O n t a r i o government l a n d s p e c u l a t i o n t a x s t a n d s as t h e o n l y t a x e v e r imposed d u r i n g a l a n d boom p e r i o d t h a t was a d d r e s s e d s p e c i f i c a l l y a t t h e p r o b l e m o f l a n d s p e c u l a t i o n and a s an a t t e m p t t o c o l l e c t t h e u n e a r n e d i n c r e m e n t . V e r y l i t t l e t a x was e v e r c o l l e c t e d and i n O c t o b e r 1978 t h e t a x 1 1 6 was r e p e a l e d . 5.6 The 1980's: t h e end of Urban Land P r o b l e m s ? As t h e boom i n h o u s i n g c o n s t r u c t i o n and l a n d s p e c u l a t i o n came t o an end i n most u r b a n c e n t r e s a c r o s s Canada the l a n d p o l i c y d i s a p p e a r e d f r o m most d i s c u s s i o n s of h o u s i n g p o l i c y . I n t e r e s t r a t e s and f i n a n c i n g became t h e m ajor i s s u e s . The m a j o r i t y of a n a l y s t s of h o u s i n g . I n t e r e s t r a t e s r e m a i n e d above 15% from November 1980 u n t i l November 1982, p e a k i n g a t 21.3% i n 1981. (CMHC, 1983, p. 23) S i n c e l a t e 1982 i n t e r e s t r a t e s have not r i s e n f a r above 11%. As shown i n t a b l e 8, t h e r a t e of h o u s i n g c o m p l e t i o n s has been s u b s t a n t i a l l y l o w e r i n t h e 1980's compared t o t h e 1970's. F o r example, w h i l e i n t h e 1970's t h e a n n u a l a v e r a g e r a t e of c o m p l e t i o n s was 235,000, by t h e 1980's t h i s r a t e had d e c l i n e d t o 160,000. The r a t e s of h o u s i n g c o n s t r u c t i o n and l a n d and h o u s i n g p r i c e s began a g e n e r a l d e c l i n e which has n o t been w i t n e s s e d s i n c e t h e 1 9 3 0 ' s . ( S t a t i s t i c s Canada, 1984, p. 565; CMHC, 1983, p. 81) Reduced i n t e r e s t i n u r b a n l a n d i s s u e s i s r e f l e c t e d by t h e r e d u c e d f e d e r a l a c t i v i t y i n t e r e s t i n l a n d programmes. By 1980 t h e f e d e r a l government t e r m i n a t e d a l l i t s programmes aim e d a t s u p p o r t i n g p u b l i c r e s i d e n t i a l l a n d a s s e m b l i e s and m u n i c i p a l i n f r a s t r u c t u r e . A l t h o u g h e x i s t i n g p r o j e c t commitments would t o be f u l f i l l e d , no new ones were i n i t i a t e d . The m u n i c i p a l i n f r a s t r u c t u r e programme, e s t a b l i s h e d i n 1960 and p r o v i d i n g a t o t a l of $2.2 b i l l i o n i n 1 1 7 l o a n s and g r a n t s f o r sewer and water s u p p l y s y s t e m s t o 1500 m u n i c i p a l i t i e s , was t e r m i n a t e d i n December 1978. The 1973 N e i g h b o u r h o o d Improvement Programme w h i c h p r o v i d e d g r a n t s f o r i n n e r c i t y r e s i d e n t i a l l a n d a s s e m b l y was t e r m i n a t e d i n 1978. The s h o r t l i v e d 1979 Community S e r v i c e s C o n t r i b u t i o n Programme l a p s e d i n March 1979 a f t e r g r a n t i n g m u n i c i p a l i t i e s $400.3 m i l l i o n f o r a wide range of m u n i c i p a l programmes i n c l u d i n g i n f r a s t r u c t u r e . The o n l y r e m a i n i n g l a n d r e l a t e d programmes were th e l a n d a s s e m b l y p r o v i s i o n a v a i l a b l e under s e c t i o n s 40 and 42. However, d u r i n g t h e l a t e 70's and e a r l y 80's f u n d i n g of t h e s e programmes f e l l d r a m a t i c a l l y . D u r i n g t h e 1980's b o t h government, t h e p l a n n i n g p r o f e s s i o n and o t h e r s i n t e r e s t e d i n h o u s i n g p l a c e d l e s s e m p h a s i s on l a n d p o l i c y t h a n i n t h e p r e v i o u s d e c a d e . ( C a n a d a , 1985, A p p e n d i x ) F e d e r a l p o l i c y on l a n d was i n d i c a t e d i n two 1980 r e p o r t s , F e d e r a l P o l i c y on L a n d Use and Land Use i n Canada:  R e p o r t of t h e I n t e r - d e p a r t m e n t a l Task F o r c e on Land Use  P o l i c y . E s t a b l i s h e d i n 1975 w i t h r e p r e s e n t a t i v e s from 16 f e d e r a l d e p a r t m e n t s and a g e n c i e s ( i n c l u d i n g CMHC), t h e I n t e r d e p a r t m e n t a l Committee on L a n d Use P o l i c y f o c u s e d on t h e i mpact o f u r b a n i z a t i o n on l a n d use and c o n f l i c t s between e c o n o m i c g o a l s and t h e use o f l a n d . The c o m m i t t e e a r g u e d t h a t t h e f e d e r a l government s h o u l d view l a n d as a r e s o u r c e and work w i t h t h e p r o v i n c e s t o e n s u r e t h a t i t was put t o i t s b e s t u s e . I t r e c o g n i z e d t h a t l a n d was t h e j u r i s d i c t i o n of t h e p r o v i n c e s and t h a t i t would would: e n d e a v o u r t o s u p p o r t t h e p r o v i n c e s i n t h e i r 1 18 l a n d use p o l i c i e s and a c t i v i t i e s whenever t h e s e a r e c o m p a t i b l e w i t h t h e i n t e r e s t s of t h e f e d e r a l g o v e r n m e n t . ( C a n a d a , 1980, p. 51) However, d e s p i t e t h e c o m m i t t e e ' s e m p h a s i s on l a n d as a r e s o u r c e r a t h e r than as a commodity i t s r e p o r t d i d n o t c r i t i c i z e t h e l a n d market as t h e a l l o c a t o r of l a n d u s e s . The f r e e e x e r c i s e o f a) p r i v a t e r i g h t s and o b l i g a t i o n s a s s o c i a t e d w i t h l a n d o w n e r s h i p ; and b) t h e o p e r a t i o n of t h e market as t h e p r i m e a l l o c a t o r of p r i v a t e l y owned l a n d must be p r e s e r v e d u n l e s s c l e a r l y d e m o n s t r a t e d t o be c o n t r a r y t o t h e p u b l i c i n t e r e s t . ( I b i d , p. 54) Urban and r e g i o n a l p l a n n e r s i n a Task F o r c e examing t h e p r o s p e c t s f o r p l a n n i n g a l s o r e f l e c t e d a s i m i l a r s t a n c e on t h e n a t u r e and use of u r b a n l a n d . The Task F o r c e , e s t a b l i s h e d i n 1980 by t h e C a n a d i a n I n s t i t u t e of P l a n n e r s , d e f i n e d t h e u r b a n l a n d p r o b l e m i n t e r m s of t h e need t o c o n t i n u e l a n d use p l a n n i n g t o e n s u r e amenable and e f f i c i e n t , u r b a n d e v e l o p m e n t . In a d d i t i o n , i t i n d i c a t e d s u p p o r t f o r t h e p r i v a t e l a n d market b e c a u s e i t s u g g e s t e d p l a n n e r s " r e v i e w i n h i b i t i n g r e g u l a t i o n s " t h a t were " d e l a y i n g o r p r e v e n t i n g r e s p o n s e s t o t h e m a r k e t " . ( T a s k F o r c e on t h e F u t u r e o f t h e P l a n n i n g P r o f e s s i o n , 1982, p.34) The Task F o r c e a p p e a r e d s a t i s f i e d w i t h t h e p a s t and p r e s e n t c o u r s e of u r b a n d e v e l o p m e n t . L o o k i n g back a t t h e p a s t 30 y e a r s of u r b a n d e v e l o p m e n t , t h e p l a n n e r s c o n g r a t u l a t e d t h e i r p r o f e s s i o n f o r t h e q u a l i t y of u r b a n d e v e l o p m e n t . The r e s u l t i n g s u b u r b s w i t h t h e i r n e i g h b o u r h o o d s p l a n n e d a r o u n d s c h o o l s and p a r k s , t h e i r s h o p p i n g c e n t r e s and i n d u s t r i a l p a r k s , have p r o v i d e d s a f e and c o n v e n i e n t 1 1 9 l i v i n g c o n d i t i o n s , a t r e a s o n a b l e p u b l i c c o s t , f o r many C a n a d i a n s . ( I b i d , p. 13) The d i s c u s s i o n o f l a n d p o l i c y . i n p a r l i a m e n t was a l s o l i m i t e d . In the e a r l y 1980's rampant l a n d s p e c u l a t i o n o c c u r e d i n o n l y a few m a r k e t s , most n o t a b l y i n A l b e r t a and B r i t i s h C o l u m b i a . F o r example, from 1979 t o 1981 r e s i d e n t i a l l a n d p r i c e s i n V a n c o u v e r i n c r e a s e d 100%.(Canada, S t a t i s t i c s C anada, 1983, p. 56) M a r g a r e t M i t c h e l l , N.D.P. member f o r V a n c o u v e r E a s t t o l d p a r l i a m e n t i n 1982 t h a t s p e c u l a t i o n on h o u s i n g was making a d e q u a t e s h e l t e r u n a f f o r d i b l e f o r many V a n c o u v e r r e s i d e n t s . T h i s boom o r b u s t r e a l e s t a t e market i n Canada which has made many p e o p l e h o m e l e s s was e n c o u r a g e d by t h e l a c k o f government s p e n d i n g , t h e l a c k of c o n t r o l s on s p e c u l a t i o n and t h e g e n e r a l e ncouragement o f t h e myth t h a t homeownership i s t h e b e s t hedge a g a i n s t i n f l a t i o n . ( House of Commons  D e b a t e s , 1982 S e s s i o n , p.6574~5 She f u r t h e r c r i t i c i z e d t h e c u r r e n t f e d e r a l i n t e r e s t d e f e r r a l m o r t g a g e s and homebuyer g r a n t s a s o n l y c o n t r i b u t i n g t o an a l r e a d y o v e r h e a t e d r e a l e s t a t e m a r k e t . A n o t h e r N.D.P. Member from t h e V a n c o u v e r r e g i o n , Mark Rose, a s k e d the House, "what i s k e e p i n g p e o p l e out of h o u s i n g " ? He r e p l i e d t h a t i t was h i g h i n t e r e s t r a t e s and r i s i n g l a n d p r i c e s . He n o t e d t h a t l a n d made up a s u b s t a n t i a l p o r t i o n of t h e c o s t o f h i s house. I t i s not t h e c o s t ' o f l a b o u r , or even t h e c o n t r a c t o r ' s p r o f i t s . I t i s two t h i n g s o n l y , l a n d p r i c e s and i n t e r e s t r a t e s . The l a n d under the house I bought i n 1961 was 10% o f i t s t o t a l c o s t . T o d a y . . . t h e l a n d under i t i s now 50% of i t s c o s t . ( I b i d , p. 15505) B o t h M i t c h e l l and Rose a s k e d t h e f e d e r a l m i n i s t e r of 120 h o u s i n g , P a u l C o s g r o v e , t o l o o k i n t o t h e p r o b l e m o f l a n d s p e c u l a t i o n . A l t h o u g h t h e y p r o p o s e d a 100% c a p i t a l g a i n s t a x on p r o f i t s made on t h e s a l e of h o u s i n g t h a t was not one's p r i n c i p a l r e s i d e n c e , t h e i r p r o p o s a l s d i d not d i r e c t l y a d d r e s s l a n d p o l i c y . However, t h e government d e c l i n e d t o t a k e any a c t i o n on t h e i r s u g g e s t i o n s . ( I b i d , pp. 6201-6202) In 1985 t h e newly e l e c t e d P r o g r e s s i v e C o n s e r v a t i v e f e d e r a l government r e l e a s e d a C o n s u l t a t i o n P aper on H o u s i n g t o i n i t i a t e d i s c u s s i o n s on a new d i r e c t i o n f o r h o u s i n g p o l i c y i n Canada. The p a p e r c o n c e d e d t h a t : C a n a d i a n s s t i l l have unmet h o u s i n g n e e d s . S i z e a b l e number of p e o p l e r e m a i n u n a b l e t o a f f o r d d e c e n t s h e l t e r , whether r e n t e d o r owner o c c u p i e d . ( C a n a d a , 1985, p. 2) However, the r e p o r t c o n c l u d e d t h a t h i g h l a n d c o s t s o r o t h e r l a n d p r o b l e m s were not r e s p o n s i b l e f o r h o u s i n g a f f o r d a b i 1 i t y p r o b l e m s . The c o n s u l t a t i o n p a p e r n o t e d t h a t t h e s u p p l y of r e s i d e n t i a l l a n d was more t h a n a d e q u a t e i n a l m o s t a l l u r b a n c e n t r e s i n Canada and t h a t t h e u r b a n l a n d m arket was p e r f o r m i n g s a t i s f a c t o r i l y . O v e r a l l t h e u r b a n l a n d s u p p l y p r o c e s s i s f u n c t i o n i n g w e l l a c r o s s Canada, w i t h t h e s u p p l y of s h o r t - t e r m l a n d s t r o n g i n most c e n t r e s . ( I b i d , A p p e n d i x , p. 9) The r e p o r t went on t o n o t e t h a t l a n d c o s t i n c r e a s e s s i n c e 1976 had r i s e n a t a r a t e l e s s t h a n t h e Consumer P r i c e I ndex. However, the r e p o r t f a i l e d t o n o t e t h a t p r i o r t o 1976 l a n d p r i c e s had i n c r e a s e d r a p i d l y t o h i g h l e v e l s and had not d e c r e a s e d , s i g n i f i c a n t l y from t h e s e p r i c e s . As shown by 121 t a b l e 10, r e s i d e n t i a l l a n d p r i c e s were s t i l l i n 1983 more t h a n t h r e e t i m e s 1971 l e v e l s . A l t h o u g h t h e r e has been some d e c l i n e i n l a n d p r i c e s d u r i n g t h e 1980's, t h e y have not f a l l e n below t h e r e c o r d l e v e l s s e t d u r i n g t h e 1970's. Land, i n t h e e y es o f t h e f e d e r a l government does not pose a major p r o b l e m . I t i s assumed t h a t t h e u r b a n l a n d market i s p r e f o r m i n g s a t i s f a c t o r i l y b e c a u s e l a n d p r i c e s a r e o n l y i n c r e a s i n g a t a moderate pace and t h e r e i s an a d e q u a t e s u p p l y of s e r v i c e d l a n d . 5.7 C o n c l u s i o n Land p o l i c y g a i n e d i t s g r e a t e s t p r o m i n e n c e d u r i n g t h e 1970's w i t h t h e f e d e r a l government e x p a n d i n g i t s i n v o l v e m e n t i n l a n d b a n k i n g , t h e . O n t a r i o p r o v i n c i a l government i n t r o d u c i n g t h e f i r s t u n e a r n e d i n c r e m e n t t a x and a c r o s s Canada, m u n i c i p a l g o vernments r e g u l a t i n g t h e use of u r b a n l a n d . The s p e c u l a t i v e boom of 1974-1976 was so i n t e n s e , p r o v i n c i a l and f e d e r a l g o v e r n m e n t s worked t o g e t h e r t o p r e p a r e th e Task F o r c e s t u d y on t h e S u p p l y and P r i c e of S e r v i c e d L a n d . However, w i t h t h e e x c e p t i o n o f O n t a r i o ' s u n e a r n e d i n c r m e n t t a x , no l a n d p o l i c y m e a s u r e s d i r e c t l y a d d r e s s e d t h e t r e a t m e n t of l a n d as a p r i v a t e l y h e l d market commodity b e y o n d some r e g u l a t i o n of l a n d u s e . Even t h o u g h l a n d p o l i c y became a h i g h l y p o l i t i c z i e d i s s u e d u r i n g t h e 1970's, t h e p o l i c i e s p u r s u e d by g o v e r n m e n t s a l l s u p p o r t e d t h e p r i v a t e l a n d m a r k e t . By t h e 1980's l a n d p o l i c y was no l o n g e r p r o m i n e n t i n p u b l i c and a c a d e m i c 1 22 d e b a t e s . Governments i n most p a r t s of Canada t e r m i n a t e d many of t h e i r l a n d programmes and a p p e a r e d t o be e x p r e s s i n g c o n f i d e n c e i n t h e u r b a n l a n d m a r k e t . F o r example, l a n d p o l i c y i n t h e 1985 f e d e r a l c o n s u l t a t i o n p a p e r on h o u s i n g i s m e n t i o n e d o n l y l a n d b r i e f l y . I t a p p e a r s t h a t s i m i l a r t o t h e 1930's, . when l a n d s p e c u l a t i o n c e a s e d t o be p r o m i n e n t a c t i v i t y and t h e pace of l a n d p r i c e i n c r e a s e s was s l o w e r , l a n d p o l i c y and t h e u r b a n l a n d market were not c o n s i d e r e d as major i s s u e s f o r h o u s i n g p o l i c y - m a k e r s . 123 CHAPTER SIX CONCLUSION In some r e s p e c t s government l a n d p o l i c y a s i t r e l a t e s t o t h e p r o v i s i o n of h o u s i n g has changed v e r y l i t t l e s i n c e 1900. In t h e p r o v i s i o n of h o u s i n g u r b a n l a n d c o n t i n u e s t o be t r e a t e d as a commodity t h a t i s p r i c e d and a l l o c a t e d a c c o r d i n g t o t h e dyn a m i c s of s u p p l y and demand. La n d p o l i c y has g e n e r a l l y r e m a i n e d l i m i t e d t o v a r i o u s ' forms of' l a n d use r e g u l a t i o n w h i c h have done l i t t l e t o c h a l l e n g e t h e commodity n a t u r e of l a n d . W h i l e i t has been o c c a s i o n a l l y a r g u e d t h a t t h e o p e r a t i o n o f t h e p r i v a t e l a n d market i s r e s p o n s i b l e f o r many h o u s i n g p r o b l e m s , l a n d p o l i c y has not c h a l l e n g e d t h e t r e a t m e n t of l a n d a s a p r i v a t e commodity. T h i s i s s u e has r e c e i v e d v e r y l i t t l e a t t e n t i o n from u r b a n a n a l y s t s and p o l i c y - m a k e r s beyond t h e r e c o g n i t i o n t h a t w i d e s p r e a d s p e c u l a t i o n d u r i n g boom y e a r s has wreaked havoc w i t h h o u s i n g and l a n d m a r k e t s , as w e l l as w i t h m u n i c i p a l c a p i t a l works b u d g e t s . T h e r e have been f o u r p e r i o d s of p a r t i c u l a r l y r a p i d i n c r e a s e s i n r e s i d e n t i a l l a n d p r i c e s : t h e de c a d e p r i o r t o W o r l d War Two, t h e l a t e 1920's, 1949-1958 and 1974-1976. The 1 24 d e c a d e t h a t p r e c e d e d th e f i r s t w o r l d war was marked the h i g h e s t a n n u a l r a t e s of i m m i g r a t i o n e v e r a t t a i n e d i n Canada, the i n i t i a l d e v e l o p m e n t of l a r g e c i t i e s i n w e s t e r n Canada and t h e emergence of a s m a l l g r o u p of i n d i v i d u a l s a d v o c a t i n g l a n d use p l a n n i n g and t h e r e g u l a t i o n o f urban d e v e l o p m e n t . D u r i n g t h e mid t o l a t e 1920's when t h e r e was a mini-boom i n u r b a n h o u s i n g c o n s t r u c t i o n . A l s o , a g r o w i n g town p l a n n i n g movement u r g e d more government i n t e r v e n t i o n i n l a n d d e v e l o p m e n t . A d v o c a t e s o f l a n d p o l i c y measures d u r i n g t h i s p e r i o d were g e n e r a l l y r e s p o n d i n g t o t h e p r o b l e m s p o s e d by t h e r a p i d pace of u r b a n i z a t i o n and t h e e x c e s s e s o f u r b a n l a n d m a r k e t s w h i c h r e s u l t e d i n w i d e s p r e a d l a n d s p e c u l a t i o n . However, w i t h f a l l i n g l a n d p r i c e s and l i t t l e l a n d s p e c u l a t i o n d u r i n g t h e 1930's, l a n d p o l i c y d i s a p p e a r e d from d i s c u s s i o n s of h o u s i n g p o l i c y . S i n c e W o r l d War Two t h e r e have been two p e r i o d s of r a p i d l a n d p r i c e i n c r e a s e s . The f i r s t began i n t h e y e a r s f o l l o w i n g t h e war and c o n t i n u e d u n t i l 1958. The r a t e of l a n d p r i c e i n c r e a s e s s l o w e d somewhat d u r i n g t h e 1960's and t h e e a r l y 1970's. However, l a n d p r i c e l e v e l s r o s e a g a i n s h a r p l y from 1974 t o 1976 m a r k i n g a n o t h e r p e r i o d . ( T a b l e VI summarizes t h e c h a n g e s i n r e s i d e n t i a l l a n d p r i c e s , i n f l a t i o n and u r b a n h o u s i n g s t a r t s . ) S i n c e 1900 a d v o c a t e s o f government l a n d p o l i c i e s have g e n e r a l l y i d e n t i f i e d t h r e e u r b a n l a n d p r o b l e m s . F i r s t , t h e y a r g u e d . t h a t t h e u n r e g u l a t e d s u b d i v i s i o n of l a n d f o r r e s i d e n t i a l and o t h e r p u r p o s e s was i n c r e a s i n g t h e p u b l i c 1 25 c o s t of s e r v i c i n g r e s i d e n t i a l a r e a s . M u n i c i p a l i t i e s o f t e n c a r r i e d l a r g e d e b t s due t o t h e i r a t t e m p t s t o s e r v i c e t h e s e s c a t t e r e d s u b d i v i s i o n s w i t h p u b l i c s e r v i c e s . S e cond, t h e u n r e g u l a t e d d e v e l o p m e n t u r b a n a r e a s , t h e y a r g u e d , o f t e n r e s u l t e d i n n o n - c o n f o r m i n g and h a p h a z a r d l a n d use p a t t e r n s . The r e s u l t i n g m i x t u r e o f r e s i d e n t i a l , i n d u s t r i a l and c o m m e r c i a l l a n d u s e s o f t e n l o w e r e d r e s i d e n t i a l p r o p e r t y v a l u e s . T h i r d , t h e h i g h c o s t of r e s i d e n t i a l l a n d was sometimes i d e n t i f i e d a s one of t h e c a u s e s of t h e u n a f f o r d a b i l i t y of h o u s i n g f o r many low income h o u s e h o l d s . Many a d v o c a t e s of government i n v o l v e m e n t i n h o u s i n g t r a c e d t h e s e p r o b l e m s back t o t h e u n r e g u l a t e d use of urban l a n d and i n more l i m i t e d c a s e s , t h e t r e a t m e n t of l a n d as a p r i v a t e l y h e l d market commodity. W h i l e c r i t i c a l of p r i v a t e l a n d m a r k e t s , i n g e n e r a l , and l a n d s p e c u l a t i o n , i n p a r t i c u l a r , u r b a n a n a l y s t s and p o l i c y - m a k e r s have r a r e l y c a l l e d f o r majo r changes i n t h e i n s t i t u t i o n of p r i v a t e p r o p e r t y . Even d u r i n g t h e 1970's, t h o s e c a l l i n g f o r t h e t r e a t m e n t o f l a n d as a community r e s o u r c e , r a t h e r t h a n as a p r i v a t e commodity, r a r e l y p r o p o s e d measures t h a t would do more t h a n c u r b t h e w o r s t a b u s e s of t h e p r i v a t e l a n d m a r k e t . 1 26 T a b l e VI A C o m p a r i s o n of A v e r a g e A n n u a l Changes i n Land C o s t s , I n f l a t i o n and t o t a l 1 949 Ur b a n H o u s i n g -1 983 S t a r t s , Per i o d A v e r a g e A v e r a g e A n n u a l A n n u a l l a n d c o s t i n f l a t i o n c h a n g e s r a t e s ~i> -a A v e r a g e A n n u a l change i n h o u s i n g s t a r t s % 1949-1952 + 26.5 + 1.6 + 2.9 1952-1953 -0.2 -0.9 + 26.6 1953-1958 + 21.8 + 1 .7 + 10.3 1958-1960 -4.0 + 1.2 -18.5 1960-1964 + 4 . 9 + 1.2 + 18.6 1964-1965 + 0.1 + 2.5 + 1 .3 1965-1972 + 7.7 + 4.0 + 7.6 1972-1973 -4.3 + 7.5 + 2.2 1973-1974 + 4 . 1 + 10.9 -19.9 1974-1976 + 46.5 + 9.6 + 14.8 1976-1981 + 9.4 + 11.3 -6.4 1981-1984 -2. 1 + 8.6 -2.9 N o t e : P e r i o d s a r e i d e n t f i e d by s i m i l a r t r e n d s i n a n n u a l l a n d c o s t c h a n g e s o v e r a number o f y e a r s , S o u r c e : CMHC, 1983, p.1; t a b l e s I I , I I I and V i n t h e t e x t of t h i s t h e s i s . 1 27 T h e r e have been, i n g e n e r a l , f i v e c a t e g o r i e s of l a n d p o l i c i e s r e l a t i n g t o t h e s u p p l y of h o u s i n g . F i r s t , l a n d use z o n i n g was i n t r o d u c e d t o p r o t e c t p r o p e r t y v a l u e s , s t a b i l i z e d l a n d m a r k e t s and r e g u l a t e l a n d use c h a n g e . Second, s u b d i v i s i o n c o n t r o l s were i n t r o d u c e d t o r e g u l a t e t h e u r b a n i z a t i o n of r u r a l l a n d and c o - o r d i n a t e t h e s e r v i c i n g o f new r e s i d e n t i a l d e v e l o p m e n t . T h i r d , t h e f e d e r a l and p r o v i n c i a l g o v e r n m e n t s have i n t r o d u c e d m u n i c i p a l i n f r a s t r u c t u r e l o a n and g r a n t programmes t o u n d e r w r i t e t h e s e r v i c i n g of l a n d f o r u r b a n d e v e l o p m e n t and t o t h e r e b y i n c r e a s e t h e s u p p l y of s e r v i c e d l a n d . F o u r t h , p u b l i c l a n d a s s e m b l y programmes were i n t r o d u c e d as p a r t of a l a r g e r p a c k a g e of h o u s i n g p o l i c i e s as an a t t e m p t t o r e d u c e t h e c o s t o f r e s i d e n t i a l l a n d . F i f t h , u n e a r n e d i n c r e m e n t t a x e s have been a d o p t e d by t h e Government o f O n t a r i o t o t a x t h e u n e a r n e d i n c r e m e n t o f l a n d v a l u e i n c r e a s e s . Land p o l i c i e s a d o p t e d i n r e s p o n s e t o p r o b l e m s r e l a t i n g t o t h e s u p p l y and c o s t of h o u s i n g have e m p h a s i z e d the r e g u l a t i o n o f l a n d u s e , w h i l e l e a v i n g t h e p r i v a t e market mechanism i n t a c t . L a n d use z o n i n g and s u b d v i s i o n c o n t r o l s were p r o p o s e d a s m e a s u r e s t h a t would e l i m i n a t e many of t h e e x c e s s e s of p r i v a t e l a n d m a r k e t s by r e d u c i n g l a n d s p e c u l a t i o n . However, d e s p i t e w i d e s p r e a d a d o p t i o n of s u c h m e a sures s i n c e W o r l d War Two, i n t e n s e l a n d s p e c u l a t i o n c o n t i n u e d t o be a p r o b l e m p a r t i c u l a r l y d u r i n g t h e 1950's and t h e mid-1970's. O n l y one c a t e g o r y of p o l i c i e s , u n e a r n e d i n c r e m e n t t a x e s , w o u l d have e n c r o a c h e d upon t h e market 128 e x change of l a n d by l i m i t i n g t h e l a n d owner's r i g h t t o f u l l y a p p r o p r i a t e l a n d v a l u e s when l a n d i s e x c h a n g e d i n t h e p r i v a t e m a r k et. T h i s c a t e g o r y of l a n d p o l i c y has been u s e d l e a s t by g o v e r n m e n t s . I t i s t h e i n s t i t u t i o n of p r i v a t e p r o p e r t y t h a t g u a r a n t e e s t h e l a n d owner t h e r i g h t t o use l a n d and t h e r i g h t t o exchange l a n d i n t h e p r i v a t e m a r k e t . Government l a n d p o l i c y d i r e c t e d t o w a r d s t h e p r o v i s i o n of h o u s i n g has f o c u s e d on t h e r e g u l a t i o n of t h e use of l a n d . However, i t has n e v e r d i r e c t l y c h a l l e n g e d t h e t r e a t m e n t of l a n d as a t y p i c a l market commodity. In c o n c l u s i o n , t h e t r e a t m e n t of l a n d as a p r i v a t e l y h e l d commodity has i n c r e a s e d t h e demand f o r government e x p e n d i t u r e on h o u s i n g e s p e c i a l l y as t h e government a t t e m p t s t o c o p e w i t h t h e p r o b l e m o f t h e u n a f f o r d a b i 1 i t y p r o b l e m s among lo w e r income C a n a d i a n s . T h e r e i s , i n g e n e r a l , a c o n f l i c t between t h e d e s i r e s of p r i v a t e l a n d owners and t h e needs of t h e b r o a d e r community. On t h e one hand, l a n d owners seek o u t t h e h i g h e s t p o s s i b l e r e t u r n f o r t h e i r l a n d i n t h e p r i v a t e l a n d market and o f t e n p u r s u e u s e s w h i c h a r e not i n t h e i n t e r e s t of t h e community. On t h e o t h e r hand, t h e b r o a d e r community must have l a n d f o r h o u s i n g i n good l o c a t i o n s and a t p r i c e s w h i c h make t h e p r o v i s i o n o f a f f o r d a b l e and p h y s i c a l l y a d e q u a t e h o u s i n g f e a s i b l e . T h i s c o n f l i c t i s t h e c r u x of t h e u r b a n l a n d p r o b l e m as i t r e l a t e s t o h o u s i n g . 1 29 BIBLIOGRAPHY Adams, Thomas, 1915, "The Meaning and P r a c t i c a l A p p l i c a t i o n of Town P l a n n i n g , " C a n a d i a n M u n i c i p a l J o u r n a l , September, p. 307 . 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Y o r a t h , C , 1914, " H o u s i n g and Town P l a n n i n g " The C a n a d i a n  E n g i n e e r , 2 7 ( 1 ) , pp. 109-112. 137 APPENDIX Appendix A - Housing Starts by Type and Locat ion, Canada, 1900-1983 Appendix B - Dwellings Units Completed, Canada, 1900-1983 A p p e n d i x A Housing S t a r t s by Type and L o c a t i o n , Canada, 1900-1983 Location TOTAL S t a r t s NHA Assisted S t a r t s Non-Farm Other 1900 16,400 — 10,100 6,300 1901 19,400 — 11,800 7,600 1902 25,100 — 13,200 11,900 1903 33,000 — 17,100 15,900 1904 40,900 — 21,300 19,600 1905 52,200 — 27,700 24,500 1906 51,700 — 33,700 18,000 1907 51,300 — 32,000 19,300 1908 42,900 — 25,900 17,000 1909 61,000 — 37,400 23,600 1910 79,800 — 48,900 30,900 1911 71,500 — 57,700 13,800 1912 76,300 — 68,600 7,700 1913 63,700 — 57,100 6,600 1914 44,000 — 37,700 6,300 1915 21,300 — 15,600 5,700 1916 22,800 — 14,800 8,000 1917 23,500 — 13,000 10,500 1918 23,600 — 12,300 11,300 1919 30,600 — 22,800 7,800 1920 31,100 23,200 7,900 1921 35,000 — — — 1921 40,700 — — — 1923 39,500 — — — 1924 37,600 — — — 1925 45,500 — — — 1926 52,400 — — — 1927 54,700 — — — 1928 60,400 — — — 1929 57,500 — — — 1930 48,700 — — — 1931 39,400 — — — 1932 24,900 — — — 1933 22,800 — — — 1934 28,300 — — — 1935 33,900 72 — — 1936 41,000 729 — — 1937 45,100 1,797 — — 1938 43,900 3,643 — — 1939 48,900 5,947 — — Housing S t a r t s by Type and L o c a t i o n , Canada, 1900-1983 Location TOTAL S t a r t s NHA A s s i s t e d S t a r t s Non-Farm Other 1940 52,600 5,738 — — 1941 51,200 4,466 — — 1942 40,000 1,120 — — 1943 36,100 1,731 — — 1944 41,500 1,466 — — 1945 55,200 4,737 — — 1946 64,400 11,520 — — 1947 74,300 10,190 — — 1948 90,194 26,233 57,671 32,523 1949 90,509 29,250 58,370 32,139 1950 92,531 43,321 68,599 23,932 1951 68,579 21,439 47,374 21,205 1952 83,246 34,400 63,443 19,803 1953 102,409 39,888 80,313 22,096 1954 113,527 50,373 89,755 23,772 1955 138,276 65,377 97,386 40,890 1956 127,311 43,725 87,309 40,002 1957 122,340 47,468 84,875 37,465 1958 164,632 81,950 121,695 42,937 1959 141,345 62,333 105,991 35,354 1960 108,858 33,723 76,687 32,171 1961 125,577 59,870 92,741 32,836 1962 130,095 48,003 102,008 28,087 1963 148,624 50,267 118,512 30,112 1964 165,658 55,349 133,562 32,096 1965 166,565 54,842 135,218 31,347 1966 134,474 51,029 108,329 26,145 1967 164,123 63,208 131,858 32,265 1968 196,878 72,242 162,267 34,611 1969 210,415 82,061 169,739 40,676 1970 190,528 — 150,999 39,529 1971 233,653 — 180,948 52,705 1972 249,914 — 206,954 42,960 1973 268,529 — 211,543 56,986 1974 222,123 — 169,437 52,686 1975 231,456 — 181,846 49,610 1976 273,203 — 209,762 63,441 1977 245,724 — 200,201 45,523 1978 227,667 — 178,678 48,989 1979 197,049 - — 151,717 45,332 Housing S t a r t s by Type and L o c a t i o n , Canada, 1900-1983 Location TOTAL S t a r t s NHA A s s i s t e d S t a r t s Non-Farm Other 1980 1981 1982 1983 158,601 177,973 125,860 162,645 125,013 142,441 104,792 134,207 33,588 35,532 21,068 28,438 SOURCE: Total and NHA A s s i s t e d S t a r t s 1900-1920 F.H.Leacy, H i s t o r i c a l S t a t i s t i c s o f Canada, S e r i e s S205. 1921-1983 CMHC, Canadian Housing S t a t i s t i c s , various y e a r s . Non-Farm S t a r t s 1900-1920 F.H.Leacy, S e r i e s S204 ("non-farm"). 1921-1947 Not A v a i l a b l e 1948-1961 CMHC, CHS, various years (centres of 5,000 pop. and o v e r ) . 1962-1983 CMHC, CHS, various years (centres of 10,000-pop. and o v e r ) . A p p e n d i x B Dwelling Units Completed Canada, 1900-1984 Completions Total Annual Increase (Decrease) Urban As % of Total Total Urban Other 1900 17,700 1901 18,000 — — 300 — 1902 25,500 — — 7,500 — 1903 20,600 — — (4,900) —-1904 31,000 — — 10,400 — 1905 37,800 — — 6,800 — 906 48,300 — — 10,500 — 1907 43,100 — — (5,200) — 1908 39,900 — — (3,200) — 1909 45,900 — — 6,000 — 1910 58,100 — — 12,200 — 1911 70,200 — — 12,100 — 1912 85,200 — 15,000 — 1913 82,600 — — (2,600) — 1914 69,400 — — (13,200) — 1915 41,300 — — (28,100) — 1916 40,200 — — (1,100) — 1917 50,800 — — 10,600 — 1918 41,100 — — (9,700) — 1919 37,600 — — (3,500) — 1920 52,400 — — 14,800 — 1921 32,300 19,400 12,900 (20,100) 60% 1922 40,300 24,800 15,500 8,000 62% 1923 41,500 26,000 15,500 1,200 63% 1924 35,400 22,100 13,300 (6,100) 62% 1925 42,000 27,100 14,900 6,600 65% 1926 52,400 34,700 17,700 10,400 66% 1927 52,500 35,000 17,500 100 67% 1928 59,000 40,300 18,700 6,500 68% 1929 61,100 42,700 18,400 2,100 70% 1930 50,200 32,800 17,400 (10,900) 65% 1931 45,700 27,700 18,000 (4,500) 61% 1932 26,900 15,300 11,600 (18,800) 57% 1933 21,000 10,800 10,200 (5,900) 51% 1934 26,500 12,700 13,800 5,500 48% 1935 31,800 14,900 16,900 5,300 47% 1936 38,000 17,500 20,500 6,200 46% 1937 46,900 21,100 25,800 8,900 45% 1938 41,400 17,700 23,700 (5,500) 43% 1939 48,800 21,500 27,300 7,400 44% \U2 Dwelling Units Completed Canada, 1900-1984 Completions Total Annual Urban Increase As % of Total Urban Other (Decrease) Total 1940 49,000 22,500 26,500 20U 46% 1941 53,200 26,300 26,900 4,200 49% 1942 42,800 21,700 21,100 (10,400) 51% 1943 32,700 16,900 15,800 (10,100) 52% 1944 36,500 19,600 16,900 3,800 54% 1945 42,500 24,800 17,700 6,000 58% 1946 b0,50U 37,900 22,600 18,000 63% 1947 72,200 44,600 27,600 11,700 62% 1948 76,097 48,006 28,091 3,897 63% 1949 88,233 60,262 27,971 12,136 68% 1950 89,015 62,847 26,168 782 71% 1951 81,310 61,167 20,143 (7,705) 75% 1952 73,087 54,346 18,741 (8,223) 74% 1953 96,839 73,375 23,464 23,752 76% 1954 101,965 80,593 21,372 5,126 79% 1955 127,929 93,942 33,987 25,964 73% 1956 135,700 95,152 40,548 7,771 70% 1957 117,283 80,995 36,288 (18,417) 69% 1958 146,686 107,839 38,847 29,403 74% 1959 145,671 108,059 37,612 (1,015) 74% 1960 123,757 90,513 33,244 (21,914) 73% 1961 115,608 83,148 32,460 (8,149) 72% 1962 126,682 93,041 33,641 11,074 .73% 1963 128,191 100,447 27,744 1,509 78% 1964 150,963 101,529 49,434- 22,772 67% 1965 153,037 123,902 29,135 2,074 81% 1966 162,192 125,475 36,717 9,155 77% 1967 149,242 120,163 29,079 (12,950) 81% 1968 170,993 136,337 34,656 21,751 80% 1969 195,826 159,089 36,737 24,833 81% 1970 175,827 138,576 37,251 (19,999) 79% 1971 201,232 155,892 45,340 25,405 77% 1972 232,227 192,984 39,243 30,995 83% 1973 246,581 197,513 49,068 14,354 80% 1974 257,243 202,989 54,254 10,662 79% 1975 216,964 170,325 46,639 (40,279) 79% 1976 236,249 180,765 55,484 19,285 77% 1977 251,789 206,217 45,572 15,540 82% 1978 246,533 198,777 47,756 (5,256) 81% 1979 226,489 173,604 47,885 (20,044) 79% 1^3 Dwelling Units Completed Canada, 1900-1984 Completions Total Annual Increase (Decrease) Urban As % of Total Total Urban Other 1980 1981 1982 1983 1984 176,168 174,996 133,942 163,008 153,012 140,996 137,955 112,251 135,848 127,303 35,172 37,041 21,691 27,160 25,709 (50,321) (1,172) (41,054) 29,066 ( 9 , 9 % ) 80% 79% 84% 83% 83% SOURCE: 1900-1920 1921-1984 P i c k e t t (1963) p. 51. CMHC, Canadian Housing S t a t i s t i c s , various y e a r s . 

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