The Canada Housing Crisis is something we may be unaware of. Here in the article are some facts which you should surely know about. Canada, for instance, is the third-largest country in terms of area in North America. with a population of 3.82 crores in 2023.
The population growth of Canada is 0.85 percent, and in 2022 the growth rate was 0.78%, which indicates that the population of Canada is increasing rapidly. This increase in population raises the need for housing and property.
What is the Canada Housing Crisis?
The housing crisis in Canada is caused by a lack of affordable housing on the market. The increase in population necessitates the need for more housing, but not at the same rate. The need to start construction immediately and start making housing affordable for those who can earn a wage.
Implications of the Canada Housing Crisis
The lack of housing also leads to an increase in the death rate and crime rate. The number of people dying due to drugs has been increasing day by day. Slowly, Canada’s housing crisis became an epidemic for everyone living there, and yet no permanent solution can be seen. The government has tried a variety of techniques and plans, but nothing appears to have solved their problem.
Reason Behind Canada’s Housing Crisis
One must say that the main reason for this inability to control housing affordability is the rapid increase in population and Canada’s housing market. Let’s address these problems one by one.
This increase in population in Canada is due to international migration, which is a result of Canada’s unmatched public health care system, high quality of life, and low crime rates. Canada is also rich in education. It provides students with the best education despite all the other factors. Canada’s housing crisis is increasing with the increase in population.
There are four types of immigrants in Canada:
2.1 Economic immigrants: these are immigrants who have a particular career path and talent that meet the need for Canada’s needed workforce. Economic immigrants mostly become permanent citizens and help meet the need for labour in Canada. More than 50% of Canada’s immigrants are economic immigrants.
2.2 Immigrants sponsored by families: Here, someone who is a Canadian citizen can sponsor a person who wants to become a citizen of Canada and promise to take care of them financially. The person who sponsors them should be at least 18 years old.
2.3 Refugee: People arriving at a Canadian point of entry or who are already in Canada can apply for refugee protection in Canada.
2.4 and other immigrants.
3. History and Further Developments
The housing crisis in Canada started in Toronto in 1989. Being one of the biggest cities in Canada, Toronto has always been a major hub for new opportunities and jobs. Toronto is one of the most expensive cities in North America. It is found that 83 percent of the median household income is required to own a house in Toronto. In 1912, Toronto banned the building of multiplexes under a law called Bylaw 6061.
Meanwhile, due to inflation, housing prices in all other Canadian cities remained stable until 2001. Another major reason for Canada’s housing crisis was a private mortgage lending and an unregulated market.
The increase in population has led to a rise in demand for housing and not enough housing has been built in Canada, whether for rental or ownership by the residents. As the number of people is much larger than the number of houses, house prices have increased at an alarming rate.
Desperate for houses, many people buy a two-bedroom apartment for more than 1 million Canadian dollars. This shows that the ownership of houses has been taken out of the reach of many Canadians. Rising interest rates certainly do not help the situation.
As the prices in the housing market increased, the need for more income and job opportunities also increased. The lack of housing supply increased homelessness and crime in richer areas. Ontario and Quebec are the two most wealthy provinces and house over 50 thousand millionaires, while Toronto houses more than 11 thousand millionaires.
While Mississauga is still the most unaffordable city in Canada with high food and housing rates, the average house price in 2022 stood at approximately 704,000 Canadian dollars. Millennials spend a huge amount of their income on rent, which makes it hard for them to survive the rest of the month and buy good food hence, instead of houses the workers spend their money on food and other necessities which leads to Canada’s housing crisis.
Another main cause of the lack of affordable housing is a set of restrictive and incorrect land use and planning policies. The lack of federal and state government investment in affordable housing also adds to this Canadian housing crisis.
What people believe we are missing in Canada is the middle class. A missing middle is used to refer to a building with up to four stories. The demand for 3- to 4-story buildings is growing as Canada’s housing stock consists of townhouses, condos, bungalows, and detached houses. The building of multi-story houses would help increase the number of houses within the same area and save everyone from Canada’s housing crisis one and for all.
In many areas, rich people were also concerned about having to live with the lower class if the apartments and condos were built in the same neighbourhood as their homes. They believed that the condos were drug dens, and crime ran through the veins of the people who lived there.
What is Canada Doing to Increase Housing Affordability and Reduce the Housing Shortage?
The Canada Mortgage and Housing Corporation estimated in June that an additional 3.5 million housing units would be needed to achieve affordable housing for all Canadians by 2030.
The government’s new property flipping tax is a good step towards improvement but might not be enough. Taking empty houses and putting them to use as affordable housing can also be a good solution, but in the long term, we need more houses and to make the houses available to the already existing citizens of Canada.
Canada also banned foreign investors from reducing home prices in the country in order to allow the residents to invest in their own country and increase affordable housing for them. It will also help reduce the number of empty houses in Canada. This Canada housing crisis in Canada might not have just one solution, but many plans are afoot. One of which is creating a reasonable housing plan.
What is Canada Doing About the Lack of a Labour Force?
The Canadian government plans to welcome 465,000 permanent residents by 2023 to increase the number of workers that are needed to fill critical labour market gaps and support a strong economy. Looking ahead, Canada is planning to increase permanent residents year by year.
This solution might help Canada with the problem of a lack of workforce, but it increases the Canadian housing crisis more and more with the increase in population level. Though if Canada decides to solve the problem of its housing crisis like Singapore did, then there might be a chance for safe, clean, modernized, and more affordable housing in Canada as well.
What Needs to be Done?
In order for Canada’s housing crisis to be solved, it needs to take some emergency measures. For instance, it needs regulatory systems, more houses, better planning, new construction, low-interest rates, and better housing markets.
Make a binding commitment, empower non-profit developers, and turn tenants into owners. Canada’s housing shortage is a serious problem that needs to be addressed as soon as possible.
Canada vs. the UK: Where to Live
Canada is more expensive than the UK with respect to food and housing costs, but the UK costs less in respect to travel as flight and train tickets are cheaper. People still prefer to live in Canada, as the salary is higher, and Canada can offer better opportunities and offers.
Is Immigration to Canada that Easy?
No, immigration to Canada is not easy, and living there is even harder. According to the site for Canada, the following methods can be used to migrate there:
- Express entry program
- Family class sponsorship
- LMIA work Visa.
- The Provincial Nominee Programs (PNP)
Which Country has the Best Housing System?
The answer is Malaysia, with its 4-point plan, which has been working very well for it. The four points are:
- Housing the Poor (1971–1985)
- Market Reform (1986–1997)
- Slums Clearance (1998–2011)
- State Affordable Housing (2012-to-date)
Though you might find the most affordable housing in South Korea, Estonia, and Hungary.
How Many People are Homeless in Canada?
More than any of us would want to admit, every year more than 235,000 people remain homeless, and with property prices increasing, the number of homeless is also increasing with every passing year.
This is a serious issue, as no amount of planning will be able to help if this number keeps on increasing.
How do the Homeless Live in Canada?
Due to Canada’s housing crisis, shelters have been built in Canada for the homeless. Most are open after 5 p.m. for the night, and during the day, the homeless roam from one public place to another, like libraries, cafes, and parks. These shelters remain open all day in the winter to save people from the cold. Some libraries and private places do community service and open their doors to the homeless.
This major problem in front of us might be doomed for everyone within and outside of Canada. This is an epidemic that needs to be addressed. The supply gap needs to be reduced, and Canada’s housing bubble needs to be settled. The new key is more housing, a lower interest rate, a better lifestyle, reduced costs, and governments that are completely involved and active.
Let’s see a changed and improved Canada in the next decade or so. Let’s wait for a new, better world with almost no crime and housing for everyone in modern Canada. Now, you know everything about Canada’s housing crisis.
You can get more information from the official website of the Government of Canada. Click here.
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