Leaked Government Briefing Warns of Deepening Housing Crisis in Canada
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Internal briefing materials prepared for Canada’s Housing Minister in May describe a serious housing affordability crisis. Vulnerable and low-income groups are struggling to find affordable, suitable housing. Middle-class Canadians are also being squeezed — many are staying in rental housing longer, which strains rental supply and drives up rental costs. Meanwhile, population growth has outstripped that of many other G7 countries, adding to housing demand and escalating community-level pressures.
Construction costs for residential buildings have surged by about 58% since 2020, with the potential for further increases (citing factors like U.S. tariffs). The documents note that while housing starts remain above their 10-year average, they are slowing. Forecasts predict that home prices will increase through 2025 but then begin to cool in the following years. There’s also a growing mismatch between what kinds of housing are being built and what types people need.
The materials reveal that the federal government has fallen behind in investing in below-market-rate (i.e. more affordable) housing, hurting newcomers and vulnerable populations the hardest. Canada’s share of non-market affordable homes is around 4% of its housing stock, which is well below the OECD average of 7%. Homeless shelter use has risen sharply (43% between 2020 and 2023), and people are staying in shelters longer, highlighting obstacles to ending homelessness. In response, the government plans to create a new agency called Build Canada Homes to speed up affordable housing construction and promote use of newer building technologies.
Read the full article on: CTV NEWS
