Leo de Bever, a seasoned economist with over 40 years of experience in various financial institutions across Canada, the U.S., Japan, and Australia, is raising concerns about the Canadian government's ambitious housing plan. This initiative, known as Build Canada Homes, aims to create a new Crown corporation focused on building affordable housing on public lands. The plan is set to invest billions to stimulate the housing industry and support innovative prefabricated home builders.

De Bever, who previously led the risk department at the Ontario Teachers’ Pension Plan and advised Norway on managing its sovereign wealth, questions whether the government can effectively foster innovation within its bureaucratic structure. He stated, "How do you build innovation — and innovation incentives — into a bureaucracy?" This question is particularly relevant as the government seeks to address the growing crisis of housing affordability in Canada.

In a recent conversation, de Bever highlighted the stark reality of housing inequality, noting that young families under 35 now represent two-thirds of the bottom 50 percent of lower-income households in Canada. He expressed support for the government's plan but fears that traditional bureaucratic processes may hinder its success. "Who in government has done innovation?" he asked, emphasizing the need for a significant reduction in housing costs to make homes affordable.

De Bever pointed out that utilizing public land for housing development requires strategic planning. He explained, "If you give public land, as in Crown-owned land, that property has to be in the right place, or you have to do a swap of some sort." He believes that bureaucrats may struggle to navigate these complexities effectively.

He predicts that the establishment of Build Canada Homes will take about 18 months, during which the new entity may lean towards working with larger companies to avoid potential failures. De Bever acknowledges that government intervention can be beneficial, citing Alberta Premier Peter Lougheed's collaboration with the private sector to advance oil sands technology.

In addition to his critiques, de Bever is actively involved in community-led housing projects. He is working with the municipal council in Athabasca, Alberta, on a prefabricated housing initiative and is also advancing affordable housing projects in rural British Columbia. He advocates for investment in housing outside urban centers, where land is more affordable and telecommunication infrastructure is reliable.

De Bever argues that modern telecommunication technology allows for a shift away from concentrated urban living, enabling a 'polycentric' model where jobs and activities can be relocated to satellite communities. He believes this approach could stimulate economic activity and employment in areas like Athabasca.

Despite his extensive background in finance, de Bever has become a proponent of smaller, community-focused solutions. He reflects on his past experiences in large organizations, admitting that he once subscribed to the 'bigger is better' mentality. He noted, "If you are within that organization and you spend your time on $10 million, $20 million worth of investing, there is a notion that you’re not earning your keep."

De Bever's insights underscore the challenges and opportunities facing Canada's housing strategy as the government seeks to address the pressing need for affordable housing.