The High Cost Of Housing Is a Major Issue Across Canada, Particularly In Major Cities. Calls for Increased Housing Supply and Government Intervention Are Growing.
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The high cost of housing in Canada has been the second highest area of major concern for the people of Canada. High housing rates and rising prices have made housing less affordable. Owing to inflation and population explosion, Canadians are facing a notable housing shortage. Therefore, owning a home in Canada is a great challenge for new citizens or newcomers.
As per the statistics, the population of Canada has been increasing by an average rate of 600,000 per year for the last five years. Now, it has reached 40 million in total. The real estate industry there has been struggling to keep pace with the huge population growth, contributing 320, 000 homes (the highest number) in 2022. The inadequate supply and high in-demand situation have made housing less affordable for Canadians. Less housing means rising prices, inflation in housing and an affordability challenge. The only solution is more construction work. Side by side, the affordability must be brought under consideration. Investment in the housing sector has dropped significantly due to rising interest rates and high construction costs. These have hampered short-term housing demand, affordability and construction business. Moreover, the cost of living in urban areas has increased notably. Housing costs are getting unaffordable. Foods, vegetables, and groceries are skyrocketing. Rental is going up in major Canadian cities.
No sign of slowing down inflation in Canada is leading to continuous pricing hikes in rent, housing and mortgages. The situation is moving towards an affordable housing crisis in Canada.
The housing crisis and rising housing prices are likely to be two major issues in the next two federal elections in Canada. The problem is too wide-ranging and complex to overcome quickly. This needs government involvement and interference at all levels. All political stripes must be engaged in it, addressing the issue seriously. There are several cyclical, internal and structural challenges involved.
To cope with the situation the federal government has focused on immigration targets to ensure 500,000 permanent residents per year by 2025, excluding migrant workers and international students seeking housing.
