Canada's Housing Affordability Crisis Expands Nationwide
Canada's housing affordability crisis, once primarily concentrated in Toronto and Vancouver, has now spread to several other major cities across the country, according to a recent report from Canada Mortgage and Housing Corporation (CMHC). The national housing agency revealed that what was previously considered a localized problem has evolved into a widespread challenge affecting multiple urban centers.
Affordability Deteriorates in Multiple Cities
CMHC's comprehensive analysis indicates that housing affordability has significantly worsened in Ottawa, Montreal, and Halifax between 2020 and 2023. The agency's newly developed homeownership affordability index tracks multiple metrics including the percentage of median income required for housing costs, availability of homes within median income ranges, and discretionary income available for housing expenses.
"It's clear the crisis is no longer limited to Toronto and Vancouver," CMHC stated in its February 25 report. The index, which spans from the first quarter of 1991 to the third quarter of 2025, reveals a troubling pattern of declining affordability across most major Canadian cities.
Edmonton Stands as Lone Exception
Among the seven cities analyzed, Edmonton emerged as the only metropolitan area where housing affordability has remained relatively stable. This contrasts sharply with other urban centers where residents face increasing challenges in securing affordable housing options.
Even Calgary, which has benefited from interprovincial migration due to comparatively lower home prices, has experienced significant affordability deterioration according to CMHC's findings.
Three Waves of Affordability Erosion
CMHC identified three distinct periods of housing affordability decline:
- 2001 to 2007
- 2015 to 2020
- 2020 to 2023
The first two waves were primarily driven by affordability challenges in Toronto and Vancouver, while the most recent period has seen the crisis expand to additional urban centers across Canada.
Mathieu Laberge, CMHC's chief economist and senior vice-president of housing insights, noted that while there has been slight improvement since affordability bottomed out in 2023, "we're still far from going back to pre-COVID-19 levels."
Younger Canadians Particularly Affected
The affordability crisis has created significant barriers for younger Canadians attempting to enter the housing market. Kari Norman, a senior economist at Desjardins Group, highlighted that a substantial number of younger individuals remain unable to secure housing of their own.
Norman cited Parliamentary Budget Officer estimates indicating approximately 631,000 "suppressed households" in Canada based on the last census, with that number likely increasing due to recent population growth. "One possible reason is that affordability is still too far out of reach, preventing many from moving out on their own," she explained in a recent analysis.
Rental Market Complications
The housing affordability crisis extends beyond homeownership to the rental market as well. While rental prices have moderated somewhat from their peak levels driven by newcomer demand, there remains an imbalance in available housing stock.
Current market conditions show an oversupply of higher-priced rental units compared to more affordable options where demand is greatest. Furthermore, elevated rental costs continue to hinder potential homeowners' ability to save for down payments, creating a cycle that makes homeownership increasingly inaccessible for many Canadians.
The CMHC report underscores the growing national challenge of housing affordability, with implications for economic stability, demographic patterns, and quality of life across multiple Canadian cities.
