Despite some cooling in housing markets, affordability in Canada and the United States remains a critical issue, with the Canada Mortgage and Housing Corporation highlighting that mortgage or rent payments exceeding 30% of a family’s gross income are considered unaffordable. A recent study involving over 1,000 North American renters in 2023 revealed that nearly two-thirds are spending beyond this threshold, indicating a significant rent burden.
Interestingly, the study uncovered a direct correlation between renters’ understanding of housing economics and their ability to find affordable housing. Those with greater knowledge of affordability principles were less likely to be in unaffordable situations. This finding suggests the importance of not only increasing housing stock but also enhancing educational efforts to inform renters about affordability.
To address the growing crisis, a multi-faceted approach is necessary. This includes increasing the rental housing supply through government and private investments, such as the Canada Infrastructure Bank’s commitment to sustainable affordable housing, and focusing on educational initiatives to help renters make informed decisions.
The study emphasizes that the burden of solving the affordability crisis does not solely lie with renters but requires concerted efforts from governments, developers, and policy makers to create sustainable, long-term solutions. Strategies must focus on both expanding the housing supply and educating the public about rental affordability to mitigate the far-reaching social and economic impacts of the current crisis.
