Confronting Canada’s Housing Crisis: A Call for Action

In recent years, Canada has found itself in the throes of a housing crisis that has reached unprecedented levels of urgency. With skyrocketing housing prices and a desperate need for affordable living options, the situation demands immediate and comprehensive action from all three levels of government. A staggering 5.8 million new homes must be constructed by 2030 to restore affordability—a goal that calls for doubling the current housing start rate. This ambitious target was set by Prime Minister Mark Carney during the recent federal election campaign, making it a defining challenge for his leadership.

The Collective Responsibility of Government

While the federal government can set the tone and provide vital funding tools, the provinces wield significant power over essential housing policies. The future success of achieving housing targets hinges not only on federal initiatives but also on the bold actions of provincial governments. Their policies will be pivotal in preventing bottlenecks that could stall progress toward boosting supply, enhancing affordability, and ensuring that new housing aligns with climate goals and can withstand the impacts of extreme weather.

The federal government has already made strides: the establishment of the Build Canada Homes entity, the reinstatement of tax incentives to encourage new rental apartment construction, the removal of the GST on new rental builds, and the availability of federal land for development are all commendable actions. However, the effectiveness of these initiatives is limited without active and decisive participation from the provinces.

Progress and Pitfalls in Provincial Politics

In some provinces, there are encouraging signs of progress. British Columbia’s recent reforms allowing multiple units to be built on single lots and Ontario’s relaxation of parking minimums are examples of steps in the right direction. Yet these initiatives can easily be thwarted by rising development costs and slow approval times. Alarmingly, housing starts in both provinces plummeted by over 30% in early 2025 compared to the previous year, highlighting that progress has been insufficient to meet demands.

Municipalities, often seen as “creatures of the province,” face constraints from provincial regulations, such as Ontario’s Development Charges Act. Despite municipalities attempting to implement essential zoning reforms, many remain hindered by provincial inertia or conflicting policies, hampering their ability to respond effectively to the housing crisis.

A Roadmap to Change

Fortunately, there is a foundation upon which to build effective housing policy. The Task Force for Housing and Climate, composed of experts including former Edmonton mayor Don Iveson, published a comprehensive document titled Blueprint for More and Better Housing in 2024. This roadmap outlines over 140 actionable recommendations across government levels aimed at enhancing supply, ensuring affordability, and constructing homes resilient to climate changes.

In 2025, the Task Force released a report card evaluating government performance: the federal government earned a respectable B grade for its recent initiatives while being urged to enhance transparency in its programs. In stark contrast, no province scored above a C+, reflecting a range of challenges such as high fees, sluggish approval processes, and inconsistent reforms.

Regional Highlights and Challenges

Among the provinces, Prince Edward Island stood out with effective reforms that improved housing supply; however, it still needs to prioritize energy and climate-resilience standards for new homes. On the west coast, British Columbia has introduced some of the most audacious reforms, but they are undermined by escalating municipal fees and lagging responsiveness in approval processes. Ontario, despite some bold steps towards legalizing higher densities, faces challenges from volatile policymaking and rampant development charges, ultimately resulting in dismal housing starts.

Charting a Path Forward

To effectively tackle the housing crisis, the urgency for leadership—particularly at the provincial level—cannot be overstated. We already have proven policy solutions that are well understood and broadly supported, yet what is missing is the necessary political will. The housing crisis is not confined to any single order of government; it is a collective national challenge that requires collaboration and commitment from federal, provincial, and municipal leaders.

The time is ripe for action. The provinces hold critical keys to unlocking housing supply and must step up decisively. Failure to do so will not only jeopardize the urgent goal of adding 5.8 million new homes by 2030 but could also exacerbate the growing unrest surrounding housing affordability in Canada.

In conclusion, the roads to restorative housing are well-charted, but it will take a united effort across all government layers to combat this crisis effectively. Canada cannot afford to stall; the call to action is clear and immediate. Let us hope that leaders rise to the occasion and seize this pivotal moment in time.