A federal housing watchdog is urging Ottawa to require that one in five new homes be set aside for low-income families, a proposal that runs directly against advice from Canada Mortgage and Housing Corporation (CMHC).In a report to Housing Minister Gregor Robertson, the Office of the Housing Advocate called for at least 100,000 “deeply affordable” homes to be built each year, warning the number may need to rise to meet what it described as a generational housing crisis. Blacklock's Reporter says the plan would steer federal grants, financing, and land toward co-operatives, non-profits, and public housing, with a long-term goal of making 20% of Canada’s housing stock non-market.The report also urged cabinet to prevent the loss of affordable homes by transferring at-risk rentals into the hands of non-profits or tenants, while tying funding to affordability guarantees and eviction prevention. .“Affordability” was defined as housing costs making up no more than 30% of gross income or 40% of net income.The recommendation contradicts a 2024 CMHC study that said concentrating solely on low-cost housing was “not optimal.” Instead, CMHC argued that a balanced mix of low, mid, and high-cost housing is the most effective way to restore affordability through “filtering,” a process in which higher income households move into newer units, freeing up older ones for middle- and lower-income renters.Analysts warned that building only low-cost units could shrink property tax revenues and drive wealthier residents out of neighbourhoods. With mixed construction, CMHC said, a “vacancy chain” naturally occurs as each move frees up additional homes further down the income ladder.
