In the face of political and economic threats from the United States, most Canadians agree on two things: Canada’s sovereignty is non-negotiable, and Canada’s housing crisis will worsen with Trump’s tariffs in effect.
Rents have skyrocketed, vacancy rates are at an all-time low, and homelessness is higher than ever. Job losses, wage stagnation, and increased costs for household goods associated with tariffs could throw an increasing number of people into housing insecurity and homelessness.
Strong federal investment in social housing offers a dual solution. It will not only address the housing crisis by giving people access to affordable housing. It will also act as an economic stimulus by creating good jobs and boosting the GDP at a critical time.
It prioritizes industries affected by tariffs—such as steel and lumber—by using local materials in housing construction. The creation of good jobs will also add to demand, helping to counteract a potential economic downturn caused by trade disruptions.
Bringing Canada’s social housing stock to the Organization for Economic Co-operation and Development (OECD) average by 2030 would create an economic boost of $67 billion, according to a report commissioned by the Canada Housing and Renewal Association and the Housing Partnership Canada. The Deloitte report found that these investments in social housing would boost economic productivity by 5.7 per cent to 9.3 per cent—a needed boon when our economy is facing U.S. tariffs.
Build more social housing that is truly affordable to low-income households
This investment would help move the needle on Canada’s insufficient supply of social housing.
Canada’s investment in social housing—public, co-operative and non-profit—is paltry compared to most industrialized countries. Only four per cent of Canada’s housing stock is dedicated to non-market, including social housing. This falls far below the seven per cent OECD average of social housing stock.
Compare this with the Netherlands, where over 30 per cent of the housing stock is social housing, and the UK, where it constitutes over 15 per cent of the rental supply. Canada can do much better.
Social housing is recognized by the OECD as a “key part of past and future housing policy.” Social housing is a crucial mechanism to ensure a portion of rental units have deeply affordable rents. This ensures low- and very-low-income households can afford somewhere safe to live, and protects tenants from illegal evictions.
Building social housing would help the federal government achieve its commitment to the human right to housing, as outlined in the National Housing Strategy Act. Despite billions of dollars spent, the strategy has failed to result in homes people can afford to rent.
The bulk of funding has gone to private, for-profit developers who are building housing that is out of reach for low- and moderate-income renters. This is happening while rental properties in most Canadian communities are being bought up and flipped as financial assets by corporate landlords, causing chaos for renters.
A failure of housing affordability
Since 2019, average rents have increased by 25.3 per cent. In 2023, the average rent in Canada was $1,314 per month, with the highest rent in British Columbia at an average of $1,655.
The federal government has had eight years to demonstrate progress on the right to housing and the commitment to “improve housing outcomes for those in greatest need.” Actions speak louder than words.
Despite the promise that the “primary focus will be on meeting the needs of vulnerable populations”, Canada has failed to increase the supply of housing for those in most dire need.
The Government of Canada must commit to develop a minimum of 500,000 social housing units in the next 10 years for low-income households and those exiting homelessness. It must ensure that public lands identified for housing development remain in public and non-profit hands, to create non-market housing with maximum rents set at 30 per cent of a household’s income (25 per cent in Quebec).
With a federal election looming, we must ask: which political leaders are willing to take bold steps to secure affordable housing for Canadians and strengthen our economy for the future? With U.S. tariffs in effect, now is the time to invest in social housing. We can create good jobs, support our domestic industry and build affordable homes to form a more equitable and resilient country.
