A newly released federal briefing note suggests Canada’s housing crisis is largely a problem for those trying to break into the market, not for longtime homeowners who bought decades ago and now face relatively manageable costs.Blacklock's Reporter says the internal document, prepared by the Department of Housing for Minister Gregor Robertson through an Access To Information request, argues that most established homeowners are not experiencing affordability pressures, even as prices continue to climb.“Most neighbourhoods are affordable in the sense that current residents are generally able to afford living there,” the September 3 briefing stated, while acknowledging that this does not reflect conditions faced by prospective buyers such as young families.According to the report, households already in the market typically spend between 25% and 32% of their income on housing and transportation — levels the department describes as manageable. In contrast, those attempting to purchase homes today face significantly higher entry costs, particularly younger Canadians, immigrants and low-income earners.The briefing goes further, stating that when viewed across the entire population, “there does not appear to be an affordability crisis,” framing the issue instead as one concentrated among those seeking to enter the housing market..Data included in the report highlights the widening gap. In Toronto, homeowners who purchased property in 2004 now spend about 30% of their pre-tax income on housing and transportation, compared to 88% for new buyers. Over the same period, the average price of a single-detached home in the city climbed from $416,000 to $1.4 million.In Edmonton, the divide is also pronounced. Homeowners who bought roughly 25 years ago spend about 14% of pre-tax income on housing and transportation, while new buyers in 2024 face costs closer to 36%. Average home prices in the city rose from about $200,000 to $580,000 over that time.The department attributes the disparity to the insulating effect of homeownership, noting that once a property is purchased, owners are largely shielded from rising market prices. As mortgages are paid down or eliminated, monthly costs drop further, leaving only maintenance, taxes and insurance.
