Canada’s housing crisis is one of the hottest topics in the country right now. Buying a home is a fleeting prospect for a lot of Canadians, with many lamenting the fact that only the wealthy seem to be able to afford to buy right now.
There are a few factors contributing to the affordability issue. According to Statistics Canada, we welcomed 145,417 immigrants in the first quarter of 2023, heightening the demand for homes, increasing prices. Supply is low, with fewer homes being built now than during the pandemic, and a lack of skilled workers making this process even more difficult. With affordability spiralling out of control, there is a renewed effort being made by the federal and provincial governments to try and deal with the issue. Here’s how some cities across Canada are dealing with the problem.
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Canada’s Housing Accelerator Fund Aims to Solve the Problem
The Housing Accelerator Fund was launched in March 2023. The intention of it is to build 100,000 new homes across Canada with a budget of $4B, in an effort to deal with the lack of housing supply which will in turn help soften the affordability issue. The fund has been launched in a few cities so far, mostly across Ontario.
London was the first city selected as part of the fund. Their deal is a $74m grant to build 2,000 homes and support its new homelessness system. According to Prime Minister Justin Trudeau, London was granted access to the fund first due to their willingness to loosen zoning restrictions and their “ambitious plan to solve the housing crisis”.
Vaughan has been granted $59M to build 1,700 new homes in the area according to the federal government. Trudeau said it would allow for “high-density development near public transit, prioritize building apartments and affordable housing, and fix outdated permitting systems”. They will also amend zoning bylaws to allow the building of up to four residential units on one lot.
Hamilton’s deal is the largest to date at $93.5M, in an effort to fast-track the building of 2,600 homes in the next three years, and a view to building 9,000 over the next decade, according to the Canada Mortgage and Housing Corporation. Like Vaughan, the City of Hamilton has agreed to amend a zoning by-law to allow the construction of four residential units on one lot, while including other initiatives such as an accelerator program for accessory dwelling units and multiplex conversions.
Most recently, Halifax was granted approval of a $79.3M grant to support the building of 2,600 new homes over the next three years. It was granted on October 12, after the Halifax Regional Municipality asked for help to fast-track development approvals, reduce fees and expand its affordable housing grant initiative.
Calgary has also recently put together a plan to address housing affordability, with a strategy of nearly 80 recommendations designed to increase the supply of housing, support affordable housing and address the affordable housing needs of the indigenous population of Calgary. The city has received support from the federal government via the Accelerator Housing Fund for its plan, although the monetary amount to support is yet to be disclosed. In addition to this, $16M has been put forward by Alberta’s provincial government for the repair and maintenance of government-owned affordable housing facilities that are not in use, according to Jason Nixon, Alberta’s minister of seniors.
| City | What They’re Doing |
| London | $74M from the Housing Accelerator Fund to build 2,000 homes |
| Vaughan | $59M from the Housing Accelerator Fund to build 1,700 homes |
| Hamilton | $93.5M from the Housing Accelerator Fund to build 2,600 homes |
| Halifax | An undisclosed amount from the Housing Accelerator Fund and $16M from the provincial government to support affordable housing |
| Calgary | An undisclosed amount from the Housing Accelerator Fund and $16M from the provincial government to support affordable housing |
| Peterborough | $42M from the National Housing Co-Investment Fund, $1.8M from the Ontario Priorities Housing Initiative and $2.4m from the Canada-Ontario Community Housing Initiative to build 1,100 new homes |
| Yellowknife | $20.8M from the federal government to build a 50-unit affordable housing complex |
| Vancouver | Changes to expanding where multiplex, townhouses and low-rise apartments can be built as well as rezoning plans |
| Edmonton | Changes to zoning bylaws |
| Toronto | Hiking the city’s vacant home tax and an election promise of 25,000 rent-controlled homes |
What Other Plans Have Been Announced?
Aside from the Housing Accelerator Fund, there are other ways cities are looking to solve their affordability issues.
Peterborough has been supported by the federal government via the National Housing Co-Investment Fund, with a $42M fund, with additional support of $1.8M through the Ontario Priorities Housing Initiative (OPHI), and $2.4M from the Canada-Ontario Community Housing Initiative. The City of Peterborough received the funding to help build 1,100 new homes.
The federal government last week announced an initiative to build more homes in Yellowknife, with $20.8M being pledged in an effort to build a 50-unit affordable housing complex downtown from the federal government’s rapid housing initiative. In Vancouver, the mayor has laid out a plan to deal with the housing affordability issues, with changes including looking to expand where multiplexes, townhouses and low-rise apartment buildings can be built, as well as some rezoning plans. In Edmonton, changes are being proposed to zoning bylaws.
In Toronto, city councillors recently voted to hike the city’s vacant home tax with a projected $55M in revenue to be put toward housing programs. This is in addition to recently elected mayor Olivia Chow’s campaign promise of delivering 25,000 rent-controlled homes in the next eight years.
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