New Agency to Address Canada’s Growing Housing Crisis

OTTAWA, Canada — As Ottawa prepares to launch a new agency to accelerate home construction, internal documents reveal the severe housing crisis impacting Canadians. Briefing materials for incoming Housing Minister Gregor Robertson, made public this week, underscore how expensive housing threatens the economy and complicates living conditions for many.

The documents indicate that vulnerable populations and low-income households are struggling to meet their basic housing needs due to a lack of affordable options. Middle-class Canadians are also affected, finding it increasingly difficult to purchase homes, consequently prolonging their stay in rental units. This trend adds more pressure on an already strained rental market, driving up costs.

Andy Yan, an urban planning professor at Simon Fraser University, highlighted the significance of the briefing documents. He stated, “This allows us to understand how the minister is briefed and how Ottawa views the housing crisis.” Recent statistics show that Canada’s population growth has exceeded that of other G7 nations, intensifying housing demands.

Documents further suggest that while Ottawa intends to curb population growth to stabilize economic activity and housing prices, they also warn of potential negative impacts from trade disruptions tied to U.S. tariffs. Predictions from the briefing suggest that home prices in Canada could rise more rapidly in 2025, while housing starts may decline but will still surpass the 10-year average.

Construction costs have surged 58% since 2020, in part due to tariffs, complicating the affordability challenge. The materials indicate a mismatch between the types of housing being built and actual community needs. Yan noted a lack of focus on who the housing initiatives are intended for, saying, “They talk about housing prices and rental vacancies, but not about who we’re trying to house.”

Government documents indicated a notable rise in homelessness, with a 43% increase in average nightly shelter use from 2020 to 2023. Lengthier stays reveal significant obstacles in addressing homelessness effectively. The reports criticize a lack of investment in non-market housing options, with only 4% of Canada’s housing stock being affordable, falling below the OECD average of 7%.

On his first day as minister, Robertson acknowledged the historical neglect of affordable housing in Canada. He remarked, “The Government of Canada has not been building affordable housing since the nineties, resulting in a huge shortage.” Robertson emphasized the need for more housing supply rather than lowering prices.

The federal government plans to establish the Build Canada Homes agency to increase affordable home construction and foster innovation in building practices. Prime Minister Mark Carney announced that a significant housing initiative would be rolled out soon, with further details expected in the coming days.

In response to the situation, Conservative Leader Pierre Poilievre criticized the Liberals for delays in housing development, linking it to rising prices and lack of supply. He further argued that the surge of newcomers over the last decade has exacerbated the housing shortage, calling for tighter immigration control.