The Soaring Costs of Canadian Housing

by Saloni Chauhan

The soaring cost of housing has captured the attention of both policymakers and the public in Canada. 

Recent data from a comprehensive survey of 1,000 Canadians, ending in October 2023, highlights the gravity of the situation. 

The data was collected through random interviews with Canadians aged 18 years and over. 

The cost of housing was identified by 13.4 per cent of Canadians as their most worrying issue in September, and this number rose to 14.0 per cent in October, indicating that excessive housing costs are currently a serious problem in Canada.  

“The cost of housing is a critical issue, affecting Canadians across the country,” said Pruthvi Desai, Manager of Capital Projects at Windsor Essex Community Housing Corporation.

“The roots of this problem are multifaceted, including a demand-supply imbalance, speculative investments, fluctuating interest rates, income disparities, and regulatory barriers,” said Desai.  

According to Desai in Windsor, one of the main housing affordability challenges is the growing disconnect between home prices and local incomes and high interest rates on mortgages pose a significant barrier for aspiring homeowners. 

Jayraj Rajput a local resident agrees, he had a strong desire to purchase his first home, but securing mortgage financing was a real challenge for him, particularly given the local income conditions in the area. 

“The slower income growth in the region made it essential for me to carefully manage my finances, given that the housing costs in the area were relatively high,” said Rajput. 

“Approximately 6,000 pending applications for affordable and subsidized housing in the city of Windsor, highlighting a significant demand for affordable housing options,” said Desai. 

Local authorities and organizations are considering strategies to meet this substantial demand for affordable housing going forward.