The average Canadian household will spend 52% of its income on housing in 2024, according to a federal housing department memo that warns of deepening affordability issues nationwide. Blacklock's Reporter says that figure has jumped sharply from 38% in 2015.The internal document, titled 2024 Transition Binder, says the affordability gap is widening for middle-income Canadians, many of whom are staying in rental housing longer, putting pressure on rental supply and driving rents even higher. Rents have increased by an average of 8% annually, far outpacing inflation..“Canada is facing a housing crisis,” the memo stated. “Barriers to increasing the housing supply are wide ranging.” It cited a 58% increase in construction costs since 2020 and blamed part of the rising costs on municipal fees and restrictive zoning laws that block high-density housing near transit and infrastructure.Delays in permit approvals were also flagged as a key obstacle. According to data from the Canadian Home Builders’ Association, construction approval times vary widely, taking three months in Charlottetown, four months in Saskatoon, and as long as 32 months in Toronto..The department estimates that Canada needs to build 3.5 million additional homes by 2030 — on top of current construction levels — to restore affordability. Officials say the current supply gap stands at roughly 2 million homes.New Housing Minister Gregor Robertson, appointed May 14, acknowledged the scale of the problem. “We have a housing crisis,” he said. “We’ve got a lot of work to do on this. It doesn’t happen overnight.”Robertson, a former Vancouver mayor, said he hopes to bring his municipal experience to federal housing policy. “I wasn’t getting the help I needed from the federal government when I was mayor,” he said. “Now I’m here to help make sure that happens.”Robertson is the fifth person to hold the housing portfolio in six years. Prime Minister Mark Carney previously told reporters, “We have a strong view on housing.”
