The Housing Affordability Crisis in Canada: A Decadal Review

As Canadians gear up for Election Day on April 28, the issue of housing affordability looms large on voters’ minds. What was once just one of many issues in the 2015 federal election has evolved into the critical topic in subsequent elections, rife with heated debates and increasingly fierce scrutiny. With the Liberal Party having held power for a decade, it’s natural for Canadians to question if their governance has positively impacted the housing crisis or exacerbated it.

The Current Landscape

The backdrop of the 2023 election is grim: housing prices have surged while wages have stagnated, leading to an affordability crisis that transcends provincial and territorial lines. In major cities like Toronto and Vancouver, the data has presented undeniable trends: home prices have skyrocketed, pushing the prospect of homeownership out of reach for many.

A Decade of Liberal Governance and Key Milestones

The Liberal Party, led by Justin Trudeau, won the 2015 federal election and formed a majority government. A chronological examination of their actions and policies can shed light on the steps they have taken—or failed to take—to address housing affordability during their tenure.

2015: The Election Victory

• October 19: Justin Trudeau’s Liberal Party claimed victory, promising initiatives that aimed to foster a stronger middle class.

2016: Early Symptoms of the Crisis

• January 5: The Real Estate Board of Greater Vancouver reported record-high home sales, indicating escalating prices and a burgeoning crisis.
• March 8: Canada set an immigration target of 300,000, contributing to the increasing demand for housing.

2017: Proactive Measures?

• April 20: The Rental Construction Financing Initiative launched, providing $2.5 billion to incentivize rental construction.
• November 17: Trudeau unveiled Canada’s first-ever National Housing Strategy, pledging $40 billion to make housing affordable and reduce chronic homelessness.

Despite these ambitious plans, complaints about insufficient action bubbled to the surface.

2018 and 2019: Persistent Challenges

• January 2018: Data showed the benchmark home price in Vancouver rose to $1,050,300, a staggering increase despite decreasing sales.
• February 2019: The Federal Lands Initiative aimed to utilize surplus federal properties for affordable housing developments, yet skepticism remained.

The COVID-19 Era: An Unforeseen Crisis

The onset of the pandemic in March 2020 created yet another set of challenges:

• April 2021: As part of Budget 2021, the government unveiled a new tax on vacant, non-residents-owned properties to encourage homeownership.

2022 to 2023: New Strategies

In 2022, measures were taken to address the housing crisis directly:

• The introduction of the First Home Savings Account and the Housing Accelerator Fund were positioned as pathways for making homeownership more attainable and to speed up housing development.

The Political Context

As is typical during election cycles, the opposing party has taken the opportunity to criticize the incumbent’s record while promising change. However, navigating through political rhetoric can often obscure objective reality.

Remember, the Liberals have faced the intricacies of a global housing crisis, with variable factors including international migration, speculative investment, and inflationary pressures. While they have laid out plans, many Canadians remain unconvinced that they will adequately address the crisis.

Conclusion: A Fork in the Road

As the election approaches, Canadians will face a critical decision: whether to retain the current administration or to pivot to new leadership promising a different approach. The question remains: has the Liberal Party done enough to warrant another term? Or is it time for a fresh perspective on an issue that has spiraled into a nationwide emergency?

With various initiatives on the table and many unmet promises, voters must weigh the proven track record against the pressures of rising costs and diminished accessibility. Whatever the outcome, it is clear that housing affordability will remain a pivotal issue, requiring urgent and ongoing attention from whomever takes the helm of governance in this pivotal moment for Canada.