Skip to main content

Severely unaffordable housing sucking the life out of Canada's biggest cities

Canada's housing market has gone from bad to worse in most major cities — and it's driving young people away in droves. Image by Public Co / Pixabay

Whether you like it or not, and many people don’t, Toronto is the most important city in Canada. It’s the beating heart of our cultural industries, the home of our biggest companies and financial institutions, and the source of huge reserves of entrepreneurial and intellectual energy. And right now, it’s slowly bleeding to death.

That blood is coming from a self-inflicted wound: housing. The combination of rapidly rising interest rates and slowly moderating prices means housing is even less affordable for new buyers today than it was a year ago, before the rate hikes began in earnest. Worse, that’s the good news here, given that rents have shot up nearly 25 per cent over the last year. Unless you’re a homeowner with a paid-off mortgage, housing in Toronto is a living nightmare for almost everyone living there.

That helps explain why the GTA saw the biggest wave of interprovincial out-migration in nearly 40 years, with many of them moving to more affordable markets like Edmonton or Calgary. It also helps explain why the number of people choosing to raise their young children there continues to decline, with 50,000 fewer children under the age of 15 since 2001 in a city that’s grown by more than 300,000 people over the same period.

Toronto isn’t alone here, of course. Vancouver has been experiencing a similar sort of hollowing out for even longer as the combination of rapidly rising housing costs and stubbornly low median incomes has transformed it from a functional middle-class city into a glass birdcage for tourists and the internationally wealthy. Even Montreal, which has long been more affordable than the major cities to its west (thanks, separatist movement!), has moved into the ranks of the “severely unaffordable” in recent years.

This can all be fixed, given enough time and political courage. But that would require our elected officials, especially the ones at the municipal and provincial levels, to end so-called “exclusionary zoning” — in other words, the primacy of the single family home. In Vancouver, for example, half of the land is occupied by just 15 per cent of the homes, while in Toronto, more than two-thirds of the city’s land is zoned exclusively for single family homes. In both cities, density tends to get squeezed into pockets of ultra-tall towers, with all the attendant challenges that creates.

Canada's housing market has gone from bad to worse in most major cities — and it's driving young people away in droves, writes columnist @maxfawcett. Could it end up tipping the next election, too?

There have been some baby steps here in recent months. In Toronto, Mayor John Tory got council to sign off on “more permissive” zoning in key parts of the city, the details of which will be released in March. In Vancouver, meanwhile, the new city council put forward a proposal that would rezone all standard single-family lots for up to four units, with the bigger lots in the city’s westside rezoned for six.

But this so-called “gentle density” is still far too little, and it’s way too late. If these cities are going to staunch the bleeding of young families, their leaders need to stop tinkering at the margins and instead take the fight to homeowners in these established neighbourhoods who continue to resist meaningful density.

Appeasement, in other words, can only work for so long. As Winston Churchill said in November 1936, “The era of procrastination, of half-measures, of soothing and baffling expedients, of delays, is coming to its close. In its place we are entering a period of consequences.”

Young Canadians have been bearing the brunt of the housing market’s consequences for years now, of course. But if they continue fleeing cities like Toronto and Vancouver for less overtly hostile environments, those consequences will be visited upon a much broader range of the public — including, perhaps, Prime Minister Justin Trudeau.

That’s because for all of Pierre Poilievre’s misfires on issues like cryptocurrencies and COVID-19, the Conservative Party of Canada leader has been consistently on the mark when it comes to housing. That’s allowed him to connect with younger voters in a way that no Conservative leader has in recent memory, and it could pave a rather unique path to victory for his party in the next federal election.

It’s time for political leaders on the progressive side of the spectrum to get more serious about this issue as well, if not for the sake of young Canadians then at least for their own. Yes, implementing policies that visibly transfer wealth or opportunity from today’s voters to tomorrow can be a form of political suicide. But so is visibly fiddling while their futures burn before their eyes.

Comments