Housing affordability in Canada has become a growing concern in recent years, as more households struggle to keep up with rising shelter costs. According to new data from Statistics Canada’s 2022 Housing Survey, nearly one in four Canadian households are spending 30% or more of their income on housing, a return to pre-pandemic levels. The report highlights the challenges faced by renters, first-time homebuyers, and those waiting for affordable housing, shedding light on a nationwide issue that continues to affect the financial well-being of millions. In 2024, we have to mention that the affordability crisis has only deepened, with more Canadians finding it difficult to secure affordable housing.
The survey, conducted between November 2022 and March 2023, reveals that the share of Canadian households spending 30% or more of their income on shelter costs has reached 22.0%, a level comparable to the pre-pandemic figure of 21.5% in 2018. Although it provided valuable insights, the situation has drastically changed in 2024. Today, the affordability crisis has deepened, with an increasing number of Canadian households facing severe financial strain due to skyrocketing home prices, rising interest rates, and stagnant wages.
The affordability gap between renters and homeowners persists, with renters facing disproportionately higher financial burdens. In 2022, 33.0% of renters spent more than 30% of their income on shelter, compared to just 16.1% of homeowners.
The study also points to a significant rise in shelter costs, which increased by 20.6% from 2018 to 2022. Renters, already more vulnerable to economic pressures, were particularly impacted by the tightening rental market. For new renters who had moved in the last two years, monthly rent averaged $1,590—27% higher than that of long-term tenants. Not surprisingly, these new renters were more likely to express dissatisfaction with the affordability of their housing. In fact, 34.3% of new renters were dissatisfied, a striking increase from the 23.0% dissatisfaction rate among new renters from 2018.
While social and affordable housing offers some relief, the picture is mixed. Rent in this sector rose by 12.4% from 2018 to 2022, averaging $695 per month. However, this increase was offset by a 15.3% rise in household income, which helped reduce the proportion of social and affordable housing residents spending more than 30% of their income on shelter from 29.4% in 2018 to 25.4% in 2022.
Yet, this form of housing is not without its own challenges. The survey reveals that over 245,000 households were on waitlists for subsidized housing, with two-thirds of those waiting for more than two years. Additionally, the condition of social and affordable housing appears to be deteriorating, with 11.4% of these households living in units in need of major repairs, up from 9.8% in 2018.
Dissatisfaction with housing affordability has grown significantly across the country. In 2022, 14.5% of households expressed discontent with their housing costs, compared to just 11.1% in 2018. Renters were more likely to be dissatisfied, with 20.8% reporting concerns about affordability, compared to 11.2% of homeowners.
Beyond housing costs, the overall financial burden on Canadian households has escalated due to rising prices for essentials such as gasoline (+34.0%) and food (+22.7%) since 2018. By 2022, nearly one-third (30.9%) of Canadian households were struggling to make ends meet, a sharp rise from 21.9% in 2018.
The survey also highlights the growing difficulty for first-time homebuyers in the Canadian housing market. Approximately 1.3 million households (8.6%) purchased their first home between 2018 and 2022, a figure that remains virtually unchanged from the 8.7% recorded in the previous four-year period. However, first-time buyers in 2022 faced stiffer financial challenges compared to their predecessors. Median household income for these buyers rose by 5.1%, from $109,350 in 2018 to $114,950 in 2022. Yet, this modest increase in income was dwarfed by the 12.3% surge in mortgage debt, with the median mortgage amount climbing from $249,350 to $280,000 over the same period.
The result? A larger share of first-time homebuyers (21.3%) in 2022 expressed dissatisfaction with the affordability of their homes, up from 13.4% in 2018. The growing gap between income and housing costs is leaving many Canadians wondering if homeownership is still a viable goal in an increasingly expensive market.
The survey paints a sobering picture for those waiting for social housing. In 2022, approximately 245,900 households were on waitlists for subsidized housing, and many had been waiting for two years or more. Households on these waitlists are particularly vulnerable, with 41.7% of them living in unaffordable housing and 64.5% struggling to meet their financial obligations. The backlog underscores the difficulty many Canadians face in accessing affordable housing, particularly in urban areas where housing costs continue to rise.
Moreover, while social housing provides a lifeline for many, it is not without its own issues. The survey notes that a larger proportion of social housing units required major repairs in 2022 compared to 2018, suggesting that infrastructure investment is falling behind demand.
The challenges outlined in the Canadian Housing Survey are part of a broader trend of economic strain across the country. Rising interest rates, inflation, and stagnant wages are contributing to a growing sense of financial instability for many Canadian households. In 2022, 48.3% of renters in social and affordable housing reported difficulties meeting their financial obligations, reflecting the cumulative impact of rising costs beyond just housing.