New research from the Fraser Institute reveals that Ontario's housing affordability crisis has expanded far beyond Toronto, creating significant financial challenges for young families across the province and impacting national housing markets.
The Growing Burden of Home Ownership
According to two recent reports from the think tank, young Canadians face two major financial hurdles: accumulating a substantial down payment and managing ongoing mortgage costs that frequently exceed 70% of a family's median after-tax income.
Authors Jake Fuss and Austin Thompson emphasized in their Monday report that soaring housing costs are no longer confined to major urban centers. Smaller towns and cities throughout Ontario now face similar affordability challenges that make home ownership increasingly difficult for new buyers.
Brantford: A Case Study in Declining Affordability
The research highlights Brantford in southwestern Ontario as a prime example of this troubling trend. In 2023, a family earning the local median income needed $136,880 for a 20% down payment on a typical home - equivalent to 27.3 months of after-tax income.
This represents a dramatic increase from just a decade earlier. In 2014, the same down payment required only $50,200 or 12.6 months of income, demonstrating how rapidly housing costs have escalated in smaller communities.
Mortgage Payments Create 'Unmanageable Burden'
The financial pressure continues even after families manage to secure a down payment. In 2023, the monthly mortgage payment for a typical Brantford home - assuming a 20% down payment and 25-year amortization - reached $3,517, consuming 70.1% of the average family's after-tax income.
The report describes this as "an unmanageable burden unless you can rely on financial support from family or rental income from a live-in tenant." The contrast with 2014 is stark, when mortgage payments represented just $1,065 or 26.7% of family income.
National Implications of Ontario's Housing Struggle
A July report from the Fraser Institute warned that Ontario's housing problems have significant national consequences. "When the country's largest province stumbles, it drags national progress down with it," the authors noted.
The analysis identified three key spillover effects: people priced out of Ontario drive up housing costs in other markets, workers are pushed away from economic hubs like Toronto where jobs are most plentiful, and inflated housing costs increase household debt levels, leaving Canadians more vulnerable during economic downturns.
The report attributes the crisis to multiple factors, including development costs, a shortage of housing starts, and immigration policies from former Prime Minister Justin Trudeau's government. Construction began on only 27,368 new homes in Ontario during the first six months of 2025 - a 25% decrease compared to the same period in 2024 and 35% below the first half of 2023.
Researchers conclude that these failed policies have particularly betrayed young Canadians with dreams of home ownership, creating generational challenges that demand urgent policy solutions.
