Understanding the Systemic Issues in the Canadian Housing Crisis
Historical Policy Shifts
From Social Housing to Financialization
In the 1980s and 1990s, Canada experienced a significant shift in housing policies. The government stopped funding social housing programs in 1993. This decision marked a move towards promoting homeownership. The focus shifted from providing affordable housing to encouraging private market solutions. As a result, financialization became a dominant force in the Canadian Housing Crisis. Investors began to view housing as a commodity rather than a necessity. This change led to increased housing prices, making it difficult for many Canadians to afford homes.
Impact on Homeownership and Debt
The retreat from social housing had profound effects on homeownership and debt. Many Canadians found themselves relying on mortgages to purchase homes. This reliance increased household debt levels significantly. The private market’s dominance meant that housing prices continued to rise, outpacing income growth. As a result, the Canadian Housing Crisis deepened, with more families struggling to keep up with mortgage payments.
Economic Disparities
Income vs. Housing Costs
Economic disparities play a crucial role in the Canadian Housing Crisis. Housing costs have risen sharply, while income growth has lagged behind. Many Canadians face a situation where their earnings do not match the escalating housing expenses. This gap creates a barrier to homeownership and forces families to spend a large portion of their income on rent. The disparity between income and housing costs exacerbates the crisis, leaving many without affordable options.
Affordability Index and Quality of Life
The affordability index highlights the challenges faced by Canadians. It measures the ability of a typical family to purchase a home. In recent years, this index has shown a decline in affordability. High housing costs impact the quality of life, forcing families to make sacrifices in other areas. Many must choose between housing and essential needs like healthcare and education. The Canadian Housing Crisis affects not only financial stability but also overall well-being.
The Current State of the Canadian Housing Crisis
Housing Prices vs. Income Growth
Canada’s housing market faces a severe affordability crisis. Canada has some of the highest housing prices, compared to income, in the G7 and leading OECD countries. This disparity between housing prices and income growth has created a significant burden for many Canadians. Home buyers confront rising ownership costs, making it increasingly difficult for them to enter the market. The gap between income and housing costs continues to widen, leaving many Canadians unable to afford homes.
Impact on Vulnerable Households
The affordability crisis disproportionately affects vulnerable households. This system creates inequality, rewarding those with the financial means to buy a home while leaving behind low- and middle-income Canadians. Many families spend a large portion of their income on housing, which limits their ability to afford other necessities. Newcomers to Canada, in particular, face significant challenges in finding affordable housing. The lack of affordable options exacerbates the struggles of these vulnerable groups, impacting their quality of life.
Government Initiatives and Shortcomings
National Housing Strategy
The Canadian government has introduced initiatives to address the housing crisis. The National Housing Strategy aims to provide affordable housing solutions across the country. These programs include funding for new housing developments and support for low-income families. Housing advocates have long called for such measures to tackle the escalating affordability crisis. However, despite these efforts, the crisis persists, highlighting the need for more comprehensive solutions.
Criticisms and Market-Driven Solutions
Critics argue that current government initiatives fall short of addressing the depth of the housing crisis. While we welcome these announcements, they pale in comparison to the depth of need across the country. Higher interest rates following post-pandemic inflation have put additional pressure on housing costs. This has exacerbated the affordability crisis, making it more challenging for Canadians to find affordable housing. To ensure affordability for everyone, a drastic increase in the supply of all types of housing is necessary. Market-driven solutions alone cannot meet the demands of a growing Canada, emphasizing the need for more inclusive and effective policies.
Pathways to Addressing the Crisis
Policy Reforms
Adjusting Market Rules
Canada’s housing market requires significant policy reforms to address systemic issues. Adjusting market rules can help stabilize housing prices and make homes more accessible. Policymakers should focus on reducing speculative investments that drive up costs. By implementing stricter regulations on foreign ownership and investment properties, the government can curb excessive price inflation. Supporting non-profit and co-op housing providers will also increase the availability of affordable homes.
Revising Zoning Regulations
Zoning regulations play a crucial role in shaping housing availability. Revising these rules can lead to more diverse housing options. Cities should encourage mixed-use developments and higher-density housing in urban areas. This approach can maximize land use and provide more affordable living spaces. Prioritizing investments for marginalized communities will ensure that everyone benefits from these changes.
Supporting Vulnerable Populations
Rental Assistance Programs
Rental assistance programs are vital for supporting vulnerable populations. These initiatives can help low-income families afford housing by providing financial aid. The Federal Government’s policy objectives emphasize strengthening protections for renters. By prioritizing affordable and non-market rental housing stock, these programs can alleviate the burden on struggling households.
Incentives for Purpose-Built Rentals
Encouraging the construction of purpose-built rentals can address the housing shortage. Offering incentives to developers can stimulate the creation of more rental units. This strategy supports a fair and effective renting system by increasing supply. By focusing on long-term rental solutions, Canada can ensure that more people have access to stable and affordable housing.
Canada’s housing market faces systemic issues that demand urgent attention. Historical policy shifts, economic disparities, and affordability crises have compounded the problem. Proposed solutions include policy reforms, zoning regulation revisions, and support for vulnerable populations. These measures aim to stabilize housing prices and increase accessibility.
“The right to adequate housing” remains a central focus in Canada’s National Housing Strategy. However, minimal support exists for organizations advocating this right.
Policymakers must prioritize inclusive changes to ensure sustainable housing solutions. By fostering fairness and transparency, Canada can advance the right to housing for all its citizens.
About Brad

Brad Kothlow PREC* is a licensed REALTOR® who resides in Riverwood and operates in Port Coquitlam.
He believes in building valuable relationships and ensuring client satisfaction. With more than 15 years of sales and marketing experience, Brad is a skilled entrepreneur with a high level of professionalism and integrity, resulting in exceptional customer service.
Brad is an esteemed member of the Medallion Club with over 500 total sales. Annually, he ranks among the top 10% of real estate agents for sales out of more than 14,000 in Greater Vancouver. Born in North Vancouver and raised in the Tri-Cities, Brad has a deep understanding of Port Coquitlam, Coquitlam, and Port Moody, and has witnessed their growth and changes over the years.
Brad is actively involved in the hockey community of Port Coquitlam. He is a coach with the Port Coquitlam Minor Hockey Association and part of the ownership group of the Port Coquitlam Trailblazers Jr Hockey Club. As a former scholarship recipient of Port Coquitlam Minor Hockey Association and Port Coquitlam Athletic Association, Brad’s love for hockey led him to open the best hockey training facility in BC, Atomic Hockey.
Brad is not only a successful REALTOR®, but also a renowned keynote speaker at real estate and marketing conferences. His years of experience in sales and marketing, combined with his expertise in the real estate industry, make him a sought-after speaker in these fields. Brad is also an active real estate coach, helping other agents to achieve success in their careers. Through his coaching programs, Brad shares his knowledge and experience, helping other agents to achieve their goals and build their businesses.
In order to better serve his clients, Brad founded the Real City Group, a talented team of over 10 agents who share his commitment to excellence in customer service, professionalism, and integrity. Each member of the team brings a unique set of skills and expertise, enabling them to handle a wide range of client needs. By working collaboratively, Brad and his team are able to provide their clients with the highest level of service possible. Whether clients are buying or selling, they can be confident that they are in good hands with Brad and his team.
As a hands-on REALTOR®, Brad is dedicated to providing expert advice, first-class service, and outstanding results. Additionally, Brad has professional experience and education in online marketing, providing him with a unique perspective on marketing homes in Port Coquitlam, Coquitlam, Port Moody, Pitt Meadows, Maple Ridge, Langley, Cloverdale, and the Lower Mainland.