{"id":29497,"date":"2024-01-08T13:08:22","date_gmt":"2024-01-08T13:08:22","guid":{"rendered":"https:\/\/www.canadianrealestatemagazine.ca\/?p=29497"},"modified":"2024-02-23T13:36:42","modified_gmt":"2024-02-23T13:36:42","slug":"co-operation-critical-to-solve-worsening-housing-crisis","status":"publish","type":"post","link":"https:\/\/www.canadianrealestatemagazine.ca\/news\/co-operation-critical-to-solve-worsening-housing-crisis\/","title":{"rendered":"Co-Operation Critical to Solve Worsening Housing Crisis"},"content":{"rendered":"
While substantial efforts have been undertaken by various levels of government to tackle the severe housing affordability and supply crisis, latest indicators show the situation may be getting worse.<\/span><\/p>\n Recently, we learned from a report by RBC<\/a> that only 26 per cent of Canadians could afford a single-family home right now, down from 40 per cent four years ago.<\/span><\/p>\n The figure is even worse for condos, as 45 per cent of households can afford to own a condo apartment based on their income, compared to close to 60 per cent in 2019.<\/span><\/p>\n Soaring interest rates and home prices have taken a toll and reduced the number of people who can afford to buy.<\/span><\/p>\n Of the provinces, Ontario and B.C. are in the worst shape. In Toronto, it takes 84 per cent of a median household income to cover housing costs, while in Vancouver, it\u2019s reached a whopping 102 per cent. We consider housing affordable when 30 per cent or less of income is used to cover costs.<\/span><\/p>\n Reports Show Need for Housing<\/b><\/p>\n The Toronto Regional Real Estate Board reports that home prices are still elevated from pre-pandemic levels, with the average price of a home at $1.08 million, compared to $843,600 four years ago. <\/span><\/p>\n A retrospective by CMHC summarizing insights gained from various reports<\/a> in 2023 shed some light on the difficulties created by the crisis.<\/span><\/p>\n A rental market report revealed patterns of increased turnover in urban centres, suggesting that job mobility, lifestyle changes, or the pursuit of more affordable housing options underscore the need for a more nuanced approach in addressing the challenges faced by both tenants and landlords.<\/span><\/p>\n Another report indicated there is a need for 3.5 million more homes than is expected to be built by 2030. With the increasing population and pent-up demand, it just highlights the urgency of the situation.<\/span><\/p>\n The country\u2019s population grew by more than 430,000 in the third quarter of 2023, setting a record. It\u2019s the fastest pace of growth in any quarter since 1957 \u2013 most of it fueled by immigration. This only exacerbates the need for more housing.<\/span><\/p>\n <\/p>\n Much More Work Remains<\/b><\/p>\n The federal and provincial governments have stepped up their efforts to address the problem, but there is still a long way to go.<\/span><\/p>\n