Rising Concern Over Housing Affordability

The proportion of Canadians identifying affordable housing as the most important problem has surged dramatically in recent years. In 2020, only 1% of Canadians cited it as their top concern. This figure rose to 5% in 2021, 6% in 2022, and reached 14% in 2023, making it the second most pressing issue after inflation (24%). This shift indicates a growing recognition of the housing crisis, particularly among younger Canadians.

Age and Regional Disparities

The concern over housing affordability is notably higher among younger Canadians. For those aged 18 to 29, 23% consider it the most important issue, compared to just 9% of those aged 45 to 59 and 11% of those aged 60 and older. This age disparity reflects the challenges younger generations face in entering the housing market.

Regionally, the concern is most pronounced in British Columbia (19%), Ontario (18%), and Atlantic Canada (14%), while it is significantly lower in Quebec (7%) and Manitoba (5%). These regional differences highlight the varying degrees of housing market pressures across the country.

Homeownership Aspirations and Realities

Despite the challenges, the desire for homeownership remains strong among Canadians. Approximately 71% of non-homeowners consider it very or somewhat important to own a home someday. However, optimism about achieving this goal has declined over time. In 1989, 34% of non-homeowners believed it was very likely they would afford a home, but this figure dropped to 26% in 2023. The decline is even more pronounced among younger Canadians, with only 31% of those aged 18 to 29 viewing homeownership as very likely, down from 47% in 1989.

Financial Strain on Homeowners

Current homeowners are also feeling the strain. Nearly two in five (38%) are worried about their ability to afford their homes, with the concern being higher among younger homeowners (53% of those under 45) compared to older ones (26% of those 55 and older). This anxiety is exacerbated by rising interest rates, which have increased mortgage payments for many.

Income and Political Affiliation

Income levels significantly influence concerns about housing affordability. Those with annual household incomes below $60,000 are more likely to be worried (43%) compared to those earning $100,000 or more (34%). Additionally, political affiliation plays a role, with Conservative Party supporters (43%) more likely to be concerned than Liberal Party supporters (26%). This difference may be partly due to the younger demographic of Conservative supporters and their greater exposure to housing market pressures.

Impact of Immigration Perceptions

The survey also reveals a link between housing affordability concerns and attitudes towards immigration. Canadians worried about affording their homes are more likely to believe there is too much immigration and less likely to see immigration as beneficial to the economy. This correlation suggests that economic pressures may influence broader social and political views.

The 2023 Focus Canada survey underscores the growing concern over housing affordability in Canada. Younger Canadians, in particular, are feeling the brunt of the crisis, with declining optimism about homeownership and increasing financial strain. Regional disparities and income levels further complicate the issue, highlighting the need for targeted policy interventions. As housing affordability continues to rise on the public agenda, it is crucial for policymakers to address the underlying factors driving this crisis and to support Canadians in achieving their homeownership aspirations.

Policy Recommendations

To address the housing affordability crisis, several policy measures could be considered:

Increase Housing Supply: Governments at all levels should work to increase the supply of affordable housing through incentives for developers, streamlined approval processes, and investments in public housing projects.

Support for First-Time Homebuyers: Programs that provide financial assistance, such as down payment grants or tax credits, can help first-time homebuyers enter the market.

Regulate Interest Rates: While interest rates are primarily controlled by the central bank, policies that mitigate the impact of rate hikes on mortgage holders, such as extended amortization periods, could provide relief.

Address Regional Disparities: Tailored solutions that consider regional housing market conditions are essential. For instance, high-demand areas like British Columbia and Ontario may require different strategies compared to regions with lower housing pressures.

Promote Rental Housing: Encouraging the development of rental properties and providing protections for renters can offer an alternative to homeownership and alleviate some of the demand pressures on the housing market.

By implementing these measures, Canada can work towards a more equitable and sustainable housing market, ensuring that all Canadians have access to affordable and secure housing.

Looking for a Canada-based Best Market Research Firm?

Are you looking for a reliable partner in market research to help your business grow? Ethos Market Research is here for you. Since 2016, we’ve been providing trusted, end-to-end research solutions for top industry professionals. Our mission is to deliver real market intelligence using the latest methodologies and best-in-class techniques, all while keeping costs down.

Why Work with Ethos?

At Ethos, our team is passionate about market research and deeply understands client needs and preferences. With strong market research backgrounds, our experts bring extensive experience to the table. Plus, our multilingual skills and global perspective mean we can handle your research needs no matter where you are.

Let’s Connect:

Phone: 1-800-525-4134
Email: bids@ethosmr.com
Address: 20 Bay Street, 11th Floor, Toronto, Canada, M5J 2N8

Reach out to us today and let’s work together to achieve your business goals and succeed in the global market!