Housing solutions are out there
Every Canadian deserves access to a home they can afford, whether it’s a single-family house, a semi-detached residence, a condo or an apartment.
That well-meaning statement, repeated so often by politicians and community leaders that its now an unchallenged part of our civic discourse, is a fading dream for millions of Canadians. The harsh reality is that the chances for millions of those Canadians of having a decent, affordable home may get worse before they get better.
That’s the blunt finding of two recent reports, one by Habitat for Humanity Canada and the other by Scotiabank, looking into the dire and growing shortage of affordable housing in Canada.
Indeed, as these reports show, we need to realize that as the housing affordability crisis deepens, our cities and towns will face more and more trouble, with far too many people struggling to live in decent housing.
Next to inflation and health care, Canadians rank affordable housing as the third most important issue facing the country, according to the report by Habitat for Humanity Canada.
The survey found 78 per cent of us are worried about having to spend less on food, transportation and debt payments to continue to afford our current housing. Also, 40 per cent of those surveyed indicated they are concerned about paying their rent or mortgage over the next 12 months and 28 per cent suggested they cannot afford a down payment of any amount toward buying a new home.
Millennials and GenZs are more than twice as likely as Boomers to worry about paying rent or mortgages, the survey found. The average annual rent across Canada for two-bedroom units reached $2,095 in 2022, and was obviously much higher in major cities such as Toronto.
“What’s so striking to see is the level of concern, household impact and increasing pessimism that we will be able to deliver the secure and affordable housing we all think is central to our stability and well-being,” says Julia Deans, president and CEO of Habitat for Humanity Canada.
Despite housing policy promises by governments, the need to tackle the affordable housing crisis remains as urgent as ever, according to a new Scotiabank report authored by Rebekah Young, vice president of inclusion and resilience economics at the bank.
Increased demand and lacklustre supply are making it difficult for more and more Canadians to buy a home, even as housing prices fall as a result of rising interest rates, the report says. The Bank of Canada increased its key overnight lending rate on Wednesday by another quarter of a percentage point.
Importantly, solutions to the crisis do exist.
Deans says several key steps can help ease barriers to building affordable housing of all kinds First, enact zoning laws that allow increased density and supply. Second, reduce municipal red tape that ties up development for years. Third, increase the amount of land designated for affordable housing.
Young recommends Canada implement “a more ambitious, urgent and well-resourced strategy” that includes doubling the number of social housing units. Currently there are some 655,000 units, about 3.5 per cent of all units, spread across the country. The strategy should include buying, renovating and retrofitting existing units, not just building new units.
Regards of the route forward, the path will be long.
“This is going to take an all-in approach from non-profits, businesses, all levels of government and the support and encouragement of individuals,” Deans says.
She’s right, because at a time when decent, affordable housing is in such short supply, a true commitment by all is needed to fix our national crisis.