Beyond Reach: How Canada’s Housing Market Became a National Emergency

The dream of homeownership in Canada once seen as a symbol of stability and success is slipping further out of reach, especially for younger generations. For many, even affording rent while maintaining a decent quality of life feels like a stretch. This growing crisis may be a major factor driving younger voters and their families to the polls as the federal election approaches on April 28.

Housing has become the defining issue in this election cycle. It’s dominating political debate and public concern, with related topics like immigration, interest rates, and affordability also taking center stage. Both leading political parties are putting housing at the forefront of their platforms. Proposals range from eliminating the GST on new homes and cutting red tape to incentivizing more density and building affordable housing. While the strategies differ, the message is clear: Canadians want solutions.

Over the past decade, home prices have surged across the country. Hotspots like Toronto and Vancouver have become nearly impossible for average earners to break into. In Toronto, for example, the income needed to afford a home has ballooned to over $220,000. And it's not just the big cities, places like Halifax, Montreal, and Calgary have seen similar price spikes, particularly during the pandemic when interprovincial migration intensified demand.

The current affordability crisis is different from past ones. While earlier crises were driven by soaring interest rates in the '80s and '90s, today’s is largely due to an unprecedented spike in home prices during the pandemic, over 50% in some areas. Experts point to both supply shortages and heightened demand as culprits, suggesting that any meaningful fix must tackle both sides.

Ontario serves as a striking example. Historically, housing costs there were about three times the average income. Now, that ratio has jumped to 10:1. This isn’t just about money, it’s about well-being. High housing costs can lead to poor mental and physical health, delayed family formation, and unequal access to education and opportunity.

The rental market hasn’t been spared either. Although some markets have cooled slightly, national rental rates have risen significantly. As of early 2025, the average rent for a one-bedroom apartment sits at $2,088.

With affordability front and center, it's no surprise housing dominates the platforms of all major parties. Municipal red tape and government-imposed costs are being highlighted as key barriers to building more homes. One party, for instance, is proposing to cut development-related fees in half over the next five years to spur construction.

In short, the conversation around housing is no longer just about real estate, it’s about the future Canadians can afford to have. And this election could mark a turning point.