Housing Affordability and Homelessness in Canada: An Urgent Call to Action

Introduction

Housing affordability emerged as a critical topic during the 2025 federal election in Canada, bringing to light the pressing need to address homelessness as an urgent human rights priority. A recent Abacus poll revealed that 67% of Canadians recognize homelessness as a critical housing issue requiring immediate intervention. This recognition comes against the backdrop of alarming statistics from the 2021 national census, which reported at least three million households in “core housing need,” defined by the Canada Mortgage and Housing Corporation (CMHC) as living in unsuitable, inadequate, or unaffordable dwellings.

The challenges are particularly stark for renters; a 2022 Canadian Housing Survey indicated that 22.1% of renters fall into core housing need, compared to just 6.1% of homeowners. Weak regulations and a competitive rental market have exacerbated these issues, leading to an explosion of homelessness and rising encampments in major urban centers. Moreover, the financialization of housing—where homes are viewed purely as financial assets—has intensified these pressing housing challenges.

In response, various government entities, including the Liberal party, have pledged to make significant strides in rectifying the situation. From establishing the Build Canada Homes agency to promising extensive investments in affordable housing, the government’s commitments signal a recognition of the crisis at hand.

Overview of What is Needed

Addressing the multifaceted issue of housing affordability requires a comprehensive strategy that considers both supply and demand. Fundamentally, developing affordable rental housing is essential for those most affected by core housing need. The 2024 federal budget took an initial step by committing $15 million over five years to a Tenant Protection Fund and announcing a Renter Bill of Rights, aimed at holding provinces and territories accountable for the treatment of renters.

To ensure that rentals remain affordable, protections against excessive rent increases—such as rental and vacancy control—are crucial. Currently, the bundled support offered by initiatives like the Canada Housing Benefit (CHB) has been insufficient, especially in the absence of robust rent protections, allowing landlords to increase rents freely.

A significant area of focus must be on expanding social housing—a sector where Canada has notably fallen behind compared to other OECD countries. Only 4% of Canada’s housing stock is designated as social housing, while countries like Finland and the Netherlands boast significantly higher figures. Advocates have long urged the government to double down on social housing investments to align closer with the OECD average.

Housing as an Infrastructure Investment

The potential economic benefits of investing in social housing are substantial. Strong federal investment in housing could stimulate Canada’s economy significantly. A report by the Canada Housing and Renewal Association suggests that increasing the social housing stock to align with the OECD average could generate an economic boost of $67 billion, alongside a 5.7% increase in productivity.

This argument underscores the importance of viewing social housing as a vital infrastructure investment rather than just a humanitarian initiative. By prioritizing social housing, policymakers can tackle homelessness while simultaneously stimulating economic growth—a dual benefit that should not be overlooked.

Public Land for Housing

In exploring creative solutions to the housing crisis, the use of public land presents a promising avenue. Historically, the Canadian government has not fully utilized its available resources, with significant portions of federal office space underutilized. Initial targets established by the Federal Lands Initiative aimed to create 4,000 new housing units, yet the actual outcomes have fallen short, as documented by a 2025 report from the Office of the Auditor General.

Public land should not merely be sold; instead, long-term renewable leases should be allocated to non-market housing developers dedicated to creating affordable homes for low-income renters. This strategic shift is vital for maximizing access to housing for vulnerable populations.

National Housing Strategy and the National Housing Strategy Act

In 2017, Canada introduced its 10-year National Housing Strategy (NHS), establishing the foundation for a more rights-based approach to housing. The subsequent enactment of the National Housing Strategy Act (NHSA) further emphasized the need for a human rights perspective in housing policy, urging the Minister of Housing to prioritize vulnerable groups.

Despite these legislative advancements, the NHS has not yet been updated to reflect the requirements established by the NHSA, a critical gap that needs addressing. Enhancing the NHS to fulfill its commitment to ending homelessness and ensuring housing as a human right remains paramount, particularly as growing attention focuses on the need for non-market housing solutions.

Actions Towards Change

The establishment of a comprehensive framework for addressing housing affordability must take various forms:

• Enhanced Funding: The AFB (Alternative Federal Budget) proposes tripling the investment to $18 billion, aiming to build one million new non-market and co-op housing units over the next decade.

• Partnerships Across Government Levels: Collaborating with local governments to enforce a permanent rent cap set at 30% of a household’s income (25% in Quebec) will ensure long-term affordability for low-income renters.

• Public Land Utilization: Ensure that public lands are retained for public use, with partnerships allowing non-profits to develop affordable housing on available sites.

• Tax Reforms: By altering tax treatments for Real Estate Investment Trusts (REITs) and implementing a national anti-speculation tax, the government can disincentivize investment strategies that erode affordable housing availability.

• Support for Vulnerable Groups: Direct support for indigenous communities, women and gender-diverse people, and other marginalized populations will ensure that housing solutions are equitable and inclusive.

Conclusion

The pressing housing crisis in Canada necessitates a multi-faceted approach that prioritizes urgent action on affordability and homelessness. As public sentiment increasingly recognizes the importance of housing as a human right, the role of government entities, both at federal and local levels, is pivotal. Comprehensive actions, strategic investment, and a commitment to serving the most vulnerable among us will lay the foundation for a healthier, more equitable Canadian society. As stakeholders across sectors mobilize for change, the time to act has never been more urgent.