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Canada’s housing affordability crisis requires a shift in strategy toward enhancing smaller "secondary" cities rather than focusing solely on large metropolitan areas like Toronto and Vancouver. Concentrating development in major cities risks exacerbating population imbalances and keeping housing prices unaffordable nationwide. By investing in infrastructure, amenities, and economic opportunities in smaller cities, these areas can become attractive alternatives, offering urban advantages alongside more affordable housing.
Between 2009 and 2019, cities like Toronto and Vancouver experienced significant gaps between home price increases and income growth. For instance, Toronto saw an 81.7% growth gap as home prices far outpaced GDP growth. In contrast, cities like Calgary showed more balanced growth, where GDP outstripped housing price increases. This stark difference underscores the importance of distributing growth more evenly to improve affordability across the country.
Despite significant homebuilding efforts—such as Toronto accounting for 17.5% of housing starts in 2024 and Vancouver for 12.2%—affordability challenges remain entrenched. This suggests that increasing supply in large cities alone is insufficient. Instead, enhancing the appeal and livability of smaller cities can attract residents, alleviate pressure on major urban centers, and foster balanced housing markets nationwide.
Read the full article on: STOREYS
