In May 2023, the Federal Housing Advocate appeared before the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA) to speak on the topic of financialization. The Committee's study was initiated in response to research commissioned by the Advocate's office on this issue, and the researchers also joined the committee's proceedings.
The Advocate emphasized the real harm that financialization is causing to people in Canada by denying them their right to housing and by harming affordable housing supply. She spoke about the issue of financialization being widespread and the way it has negatively shaped Canada's housing system. She emphasized that financialization is a serious human rights issue that has real world consequences. Finally, she told the Committee that curbing financialization is a key way that governments can help address Canada's larger housing crisis.
The Advocate's primary message to the committee was that all available federal resources must be mobilized towards the most disadvantaged groups as a matter of priority, with all appropriate means – including policies and legislation – taken to address adequate housing for these groups. She also called for a coordinated approach across all levels of government.
The Advocate invited the Committee to look at options such as:
- tracking the ownership of financialized housing stock
- better monitoring of tenant rights before, during and after the acquisition of property to prevent evictions, human rights violations, and harassment
- expanding the supply of non-market housing
- tax reforms that make financialization less profitable, especially for real estate investment trusts (REITS)
- regulating the involvement of pension funds that invest in financialization
Measures to address financialization must put human rights first.