Over the past decade, housing prices across Canada have soared, leaving many citizens — especially first-time buyers — feeling locked out of the market. Once-affordable cities like Toronto, Vancouver, and even smaller urban centers such as Halifax and Kelowna have seen property values rise sharply, making homeownership a distant dream for many Canadians.
A Decade of Rising Prices
According to the Canadian Real Estate Association (CREA), the national average home price has more than doubled since 2015. In cities like Vancouver and Toronto, average prices now hover above $1 million. This dramatic increase, driven by limited supply, speculative investment, population growth, and low interest rates during much of the 2010s and early 2020s, has pushed affordability to crisis levels.
“We’re seeing a generation of Canadians who feel they may never own a home,” says Jeanette Murray, a housing policy analyst based in Ottawa. “Even rentals are becoming unaffordable.”
The Impact on Canadians
Young families, immigrants, and lower-income Canadians are disproportionately affected. The lack of affordable housing has forced many into longer commutes, overcrowded living conditions, or even homelessness. The situation is particularly acute in urban centers, but rural communities are also beginning to feel the pressure as demand spills over into smaller markets.
Government Response: What’s Being Done?
Recognizing the urgency, the federal government — in collaboration with provincial and municipal leaders — has launched a multi-pronged strategy to address the crisis. Key elements of the plan include:
1. National Housing Strategy (NHS) Expansion
Initially launched in 2017, the NHS is being expanded in 2025 with an additional $20 billion investment over the next five years. This includes funding for:
- 100,000 new affordable housing units
- Renovations to over 200,000 existing units
- Support for community housing and shelters
2. Zoning Reform Incentives
To encourage cities to allow higher-density developments, the federal government will tie infrastructure funding to zoning reform. Municipalities that allow duplexes, triplexes, and mid-rise apartments in previously single-family zones will receive financial incentives.
3. Foreign Buyer Restrictions
In response to criticism over speculative foreign investment, the Foreign Buyer Ban, initially set to expire in 2025, has been extended for another two years. This move aims to cool demand and prioritize housing for residents.
4. Tax on Vacant Properties
A national vacancy tax will target property owners who leave homes empty for extended periods, especially in high-demand markets. Revenues from the tax will fund affordable housing initiatives.
5. Support for First-Time Buyers
New measures include:
- A shared equity program where the government co-invests in first-time purchases
- Expanding the First Home Savings Account (FHSA) limits
- Offering low-interest loans for down payments
Challenges Ahead
While these policies are promising, experts warn that results may take years to materialize. Construction timelines, political turnover, and supply chain issues could slow progress. Additionally, local resistance to zoning changes remains a major hurdle.
“Building more homes is critical, but so is making sure those homes are where people want to live and at prices they can afford,” says Dr. Ahmed Choudhury, a professor of urban planning at the University of British Columbia.
The Bigger Picture
The housing crisis is not just about real estate — it’s about quality of life, economic stability, and intergenerational equity. If Canada fails to act decisively, the long-term consequences could be profound: growing inequality, a shrinking middle class, and a generation disillusioned with the idea of homeownership.
Still, the renewed government commitment offers hope. With coordinated action at all levels and a focus on both supply and affordability, Canada may yet chart a path toward a more inclusive housing future.
