Of the new Liberal cabinet announced on Wednesday, 16 of 39 ministers are either real estate investors or landlords.
41% of cabinet ministers hold real estate assets for profit-generating purposes, an increase from the previous cabinet’s 31% (12 of 39 ministers). Members of Parliament must disclose such assets with the federal conflict of interest commissioner.
Previous housing minister Ahmed Hussen came under fire for holding two rental properties in Ottawa while overseeing a country of exorbitant rental rates and out-of-reach housing prices.
While it is legal to be an elected official and a real estate investor, critics argue that a large representation of landlords and investors in office could translate to out-of-touch attitudes and little will to solve Canada’s housing affordability crisis.
The optics of Hussen’s side gig as a landlord appeared to have bothered Trudeau, as Hussen was replaced by non-landlord Sean Fraser, while Hussen was shuffled to the international development file.
Incoming Minister of Citizens’ Services Terry Beech owns a rental property in Burnaby, BC, where the average two-bedroom unit is $3,139 per month. This makes Burnaby the fourth-most expensive place to rent such a unit in the country.
New Minister of Tourism Soraya Martinez Ferrada owns a rental property on rue Bennett in Montreal, while Gary Anandasangaree, Minister of Crown-Indigenous Relations, rents out two properties on Talara Drive in Toronto.
The average detached home in Toronto costs $1.27 million, while a condo unit is $630,000.
Finance minister Chrystia Freeland and industry minister François-Philippe Champagne, who have both stayed put amid the shuffle, hold overseas rental properties. Freeland and her spouse have two UK rental properties as well as one in New York, while Champagne rents out two London, UK properties.
Prime Minister Justin Trudeau himself discloses “Controlling interest of 7664699 Canada Incorporated located in Montréal, Québec that holds a vacant land” and “Significant interest of 9190-0563 Québec incorporated, a company based in Montreal, Quebec which produces and sells firewood and lumber and real estate development.”
While some economists contend that the Trudeau Liberals’ lofty immigration numbers are contributing to the housing crunch, new housing minister Sean Fraser has already stated he will not “close the door on newcomers.”
