The housing situation in Canada has gotten out of control, and the government’s current efforts might not be sufficient to address the issue.
To ease the nation’s ongoing housing problem, Minister of Finance Chrystia Freeland announced a number of adjustments to Canada’s mortgage regulations on Sep. 16, 2024. In effect starting Dec. 15, the changes include raising the insured mortgage top from $1 million to $1.5 million and expanding the eligibility for 30-year mortgages. In order to make house ownership more accessible, the goal is to assist first-time homebuyers and those buying newly constructed homes in entering the market with reduced down payments.
The new regulations may make houses more affordable for more people, but there is fear that the additional demand may push up prices even more.
The issue is not limited to mortgages. There is just not enough affordable housing being built in Canada. According to the Canada Mortgage and Housing Corporation (CMHC), new house development dropped by 22 per cent in August 2024, giving buyers and renters fewer options. Building new homes fast and cheap is becoming more difficult due to labour shortages, increased prices and delays. The outcome is a tight housing market, especially in large cities like Toronto and Vancouver.
Many young Canadians believe that purchasing a home is impossible. It can be quite difficult to save for a down payment, even with longer mortgage terms. Meanwhile, some tenants are forced to live in small or unsatisfactory conditions due to rising rents and a shortage of available rental space. The effects of this crisis go beyond the economy and affect people’s quality of life, mental health and financial security.
To address the housing issue, Canada must take bold steps.
Large-scale affordable housing projects must be paid for, and homes that are affordable for Canadians with low to middle incomes must be constructed.
In order to create more affordable housing, developers need help, and the government needs to remove the government red tape that disrupts building.
In order to stop fraud in the rental market, better renter guarantees and rent control policies are also necessary.
This is a human issue, not only a policy one. Unaffordable housing stresses families, worsens poverty, and damages communities.
Everybody is entitled to a secure, safe home.
Canada has to take immediate action to guarantee that housing is seen as a fundamental human right rather than an extra. To make sure housing is affordable for everyone, permanent solutions are needed, not band-aid treatments.
The housing crisis is only going to get worse and more Canadians will be left behind if we don’t address this issue seriously. It’s time to take on this growing problem.