Provincial and Territorial Politics in Canada and Beyond

J05 - The Politics of Housing and Redistribution in Federal Systems

Date: Jun 3 | Time: 03:30pm to 05:00pm | Location:

Chair/Président/Présidente : Sara McPhee-Knowles (Yukon University)

Discussant/Commentateur/Commentatrice : Jorg Broschek (Wilfrid Laurier University)

The Financialization of Housing in Canada: Sandra Hodzic (Sandra Hodzic Business Consulting)
Abstract: Abstract Canada is experiencing a $200M affordable housing shortage (Morrison Park Advisors, 2017), exacerbated by the growing financialization of housing, wherein housing is increasingly treated as a commodity and investment vehicle rather than a social good. This paper explores the nexus between these phenomena, arguing that the financialization of housing is a key driver of the current affordability crisis. The entry of institutional investors, real estate investment trusts (REITs), and private equity into the housing market has led to price inflation, reduced housing stock for lower-income Canadians, and an increase in rental costs. The paper traces the historical development of housing policy in Canada, analyzing how deregulation, tax incentives for REITs, and lack of government intervention have contributed to the commodification of housing. It further examines the socio-economic implications of these market-driven approaches, which disproportionately affect marginalized communities, particularly low-income households, Indigenous peoples, and urban renters. Using a political economy framework, this research highlights the role of global capital flows in reshaping housing markets, where speculative investment drives up costs, displaces residents, and creates barriers to homeownership. It argues that addressing the housing crisis requires a shift towards de-financializing housing through regulatory reform, increased public housing investment, and policies that prioritize housing as a human right over its value as a financial asset. This paper contributes to the growing discourse on housing policy and affordability in Canada, providing evidence-based recommendations for mitigating the impact of financialization on housing accessibility. Keywords: housing, financialization, affordable housing

Perceptions of Fairness and Territorial Redistribution in the Australian Federal System: Tracy Fenwick (Australian National University)
Abstract: Australian fiscal federalism is known to have one of the most egalitarian systems of horizontal territorial redistribution, yet we found that forty percent of Australians currently believe the state where they reside receives less than its fair share of federal government spending on various programs and transfers. What explains the interstate variation in respondents’ perceptions on whether the Commonwealth treats their state fairly, relative to others? Do individual-level attributes influence public perceptions of federalism, or are these perceptions driven by state-based factors such as differences in revenue capacity and expenditure needs (i.e. territorial inequality)? Moreover, what are the potential political consequences of these subnational variations? In this article, we argue the primary factors influencing public perceptions of whether the central government treats states fairly or unfairly are driven by subjective and objective measures about a state’s fiscal position (horizontal fiscal imbalances), awareness of tax and transfer allocations, and a respondent’s national identity, rather than individual personal attributes.

Tenants vs Owners: The Politics of cities in Ethiopia's Ethnic Federal System: Zemelak Ayele (Addis Ababa University )
Abstract: In Ethiopia’s federal system, the states are organised along ethnic settlement patterns since the federal system aims to allow the country’s ethnic communities to enjoy territorial and cultural autonomy at the subnational level. With all its limitations, this arrangement works fairly well in the predominantly rural and ethnically homogenous areas of the 12 states. It, however, poses political challenges in the multi-ethnic urban areas in the states where the endogenous ethnic communities of each state enjoy political precedence, often to the complete exclusion of everyone else. Addis Ababa, Ethiopia’s capital that hosts a multi-ethnic population, is the only city that, in constitutional terms, is outside of any ethnic jurisdiction and, until recently, its residents have been much unbothered by ethnic politics. It has been a refuge to those escaping inter-ethnic conflicts or ethnic-based marginalisation. Yet, the Oromia state, the homeland of the Oromo, the largest ethnic community in Ethiopia, surrounds Addis Ababa and, the Oromos claim historical ownership over the city and demand that the city be under the Oromia state. According to an Oromo political commentator, non-Oromo residents of the city are mere tenants that the owner of the city - the Oromo - can ask to vacate. The recent political changes in the country that brought about the political ascendency of the Oromo elite have given impetus to this claim. These and the recently launched ‘corridor project’ that resulted in the demolition of a quarter of the city is making the city’s residents nervous and the city's political future uncertain. The paper looks into and explores the political and social implications of these developments and contributes to the debates on urban governance in countries grappling to territorially manage ethno-cultural diversity.

Independent Councils and Inter-territorial Redistribution: Experimental Evidence from Alberta and BC: Kyle Hanniman (Queen's University), Elilzabeth Goodyear-Grant (Queen's University)
Abstract: Several students of Canadian federalism have been attracted to the idea of establishing an independent council responsible advising the federal government on the allocation, or design of Canada’s federal-provincial transfer system. One of the appeals of such a body is that it might make it easier for the federal government to adopt useful but controversial reforms. This is only likely to work, however, if the council convinces voters of the wisdom and fairness of its views, including views that stand to benefit other provinces at their expense. This paper will examine this potential with the results of two parallel survey experiments in Alberta and British Columbia. We will inform respondents of a plan to increase equalization payments for two provinces (Ontario, and Newfoundland and Labrador), and examine whether support for the plan depends on (1) the proposer’s identity proposer – the federal government, or an arms-length council – and (2) whether the proposer is subject to provincial attack. The study will speak to a number of literatures in Canadian, and comparative federalism, as well as work on political persuasion, and elite opinion leadership.