The British Columbia election is making headlines and capturing attention throughout the province, yet the proposed solutions to address one of the most pressing issues — housing affordability — have largely missed the mark.

Conservative plans: ‘Rustad Rebate’, ‘Get BC Building’

Let’s start with the Conservatives’ Rustad Rebate, a $3,000 monthly credit on rent or mortgage interest costs. While well-intentioned, this rebate seems to be a short-term fix that skirts around the larger systemic issues plaguing the housing market. This plan risks inflating property values further by offering rebates instead of addressing the root causes of high housing costs. The rebate could also inadvertently increase demand without a corresponding surge in supply, thus exacerbating the affordability issue it aims to alleviate. 

To be fair, the Conservatives have offered other housing solutions beyond the Rustad Rebate in the form of the “Get BC Building” plan. 

The costed platform and details of this plan were revealed just days before the election, leaving experts little time to understand the long-term implications of the proposed initiatives. Moreover, the platform sets an ambitious and unrealistic GDP growth target of 5.4 per cent, along with a deficit comparable to the one presented by the NDP. A lot of the content focuses on criticizing the NDP rather than providing further details on potential solutions.

Rustad’s proposal to develop new towns certainly captures attention and sparks creativity. But, many British Columbians, including myself, are eager to learn more specifics about how the details of this ambitious plan would be implemented. 

NDP plans: Cover 40% of a home’s cost for new buyers, tax cut & more homes for middle-class

On the NDP front, David Eby’s pledge to cover 40 per cent of a home’s cost for new buyers is similarly problematic, essentially transforming the NDP into the very speculators they criticize. 

While it’s designed to simplify entry into the housing market, this may also result in higher home prices, as sellers anticipate greater purchasing power from buyers. This also only targets a small group within the larger housing market in B.C. – first-time buyers. While we can all agree that first-time buyers are having an increasingly hard time getting into the market, this excludes equally important groups like young couples looking to start a family and seniors looking to downsize.

The plan also ties homeowners to long-term financial commitments that could become a burden if personal circumstances shift, echoing concerns from economic analysts about its potential to create new forms of financial insecurity. 

The NDP’s plan, combined with the Federal Liberals, could also significantly impact our housing market by encouraging potential buyers to pursue short-term incentives for homes that may ultimately exceed their long-term financial capabilities.

Both strategies reflect a trend toward using public funds to bring down housing costs. However, critics argue that these financial interventions don’t tackle fundamental issues such as property taxes and the cost of developing a project, which stand as significant barriers. 

Beyond Eby’s big idea to fund housing costs for new buyers, the NDP proposed a $1,000 boost for household budgets through a middle-class tax cut, along with a plan to intensify efforts against speculators and build 300,000 new homes for the middle class, which appear to be a fresh spin on their earlier policies. 

Green plans: Rental support & emergency housing

And lastly, the Green Party’s focus on rental support and emergency housing clearly leans on the public sector to boost housing supply and protect affordable rentals. While the public sector definitely has a role in making housing more affordable, we can’t forget about helping the private sector too. This approach overlooks a chance to come up with strong, creative policies that could connect with a wider audience looking for real change.  

Many of these electoral solutions fail to address the root causes of the complex housing affordability crisis in the region. From what we can see, even when they do acknowledge these underlying issues, they often lack specific details on how the party plans to implement effective measures.

Key solutions missing from the discussion include addressing the skilled worker shortage affecting home construction, slowing the growth of housing prices to allow wages to catch up, collecting wealth windfalls from zoning changes to fund affordable housing and implementing strategies to control costs in the regular housing market.

Ultimately, these housing strategies, though well-intentioned, risk becoming costly stopgaps. True progress demands policies that not only offer immediate relief but also pave the way for sustainable growth in our housing supply. B.C.’s housing crisis calls for a balanced approach that includes fiscal responsibility, market dynamics and long-term planning — a challenge that remains unmet in the current political discourse.

A new survey from Wahi that explored what type of home Canadians would most like to buy reveals that many homebuyers still dream of owning a renovated single-family home in the suburbs, despite ongoing affordability challenges.

Single-family homes preferred among nearly two-thirds of homebuyers; most want suburban living

The survey found that 64 per cent of potential homebuyers prefer single-family homes, particularly those that are larger, renovated and located in suburban (38 per cent) or urban (34 per cent) neighbourhoods. Three-bedroom homes were the most popular option (43 per cent), with only 28 per cent of respondents opting for rural living.

What’s more, a previous Wahi poll found that despite elevated interest rates and home prices, about 20 per cent of Canadians say they’ll probably or may buy a home in 2024.

Regional and demographic differences

However, regional differences emerged. In provinces with more affordable housing markets, like Saskatchewan/Manitoba (82 per cent) and Atlantic Canada (77 per cent), the preference for single-family homes was even stronger. Atlantic Canada was also the only region where most respondents (58 per cent) wished to live in a rural area.

Meanwhile, high-cost provinces like British Columbia saw a lower demand for single-family homes, with only 52 per cent of respondents choosing this option.

“Canadian cities like Vancouver, Montreal and Toronto all have great urban cores with lots to do, so some potential homebuyers may also choose condominiums to be closer to the action,” explains Wahi CEO Benjy Katchen.

Younger Canadians (18-34) are most likely to prefer single-family homes, with 67 per cent wanting this type of property, though they also prefer urban settings (34 per cent), while older generations (55+) are more inclined to downsize, with only 50 per cent choosing single-family dwellings.

Turnkeys favoured over fixer-uppers

When it comes to the condition of their future homes, the majority of Canadians (64 per cent) would prefer a renovated property, with older buyers (55+) especially drawn to turnkey homes to avoid the hassle of renovations.

About 23 per cent would consider a fixer-upper, but only 2.0 per cent are interested in a complete tear-down.

While the dream of homeownership has evolved, Wahi’s survey shows that Canadians still prioritize suburban living and single-family homes, even in today’s competitive real estate market.

On September 16, the Ontario government announced a formal consultation process to implement pay-on-demand surety bonds as an alternative to Letters of Credit (LOCs) for home builders.

The Ontario Home Builders’ Association (OHBA) recognizes this is a significant and progressive step forward for the housing industry and notes its appreciation for the efforts and commitment of Minister Calandra and the Ministry of Municipal Affairs and Housing to modernize how new housing approvals are administered.

‘Precisely the type of innovative regulatory updates we need to effectively increase our housing supply’

OHBA has advocated for this financial security tool to help home builders access capital for new housing projects for years, as it will streamline the construction of more homes in Ontario. In a release, the organization says it’s proud that its efforts were able to highlight the benefits of surety bonds as an effective tool, and it’s eager to collaborate with municipalities to facilitate its adoption.

“This is a great step forward for Ontario’s housing industry and the issue of housing affordability,” OHBA CEO Scott Andison, who played a significant role in moving the initiative forward and worked closely with Minister Calandra and Municipal staff, says.

“Allowing builders to access capital held up in LOCs and reinvest it into new projects is precisely the type of innovative regulatory updates we need to effectively increase our housing supply.”

What’s next

A key focus for the organization during this consultation will be to ensure that builders currently using LOCs can easily transition to surety bonds, freeing up essential capital for new projects.

As part of the legislative framework established under Bill 109 and Bill 185, the government is exploring regulations to authorize using surety bonds for securing municipal obligations tied to land-use planning approvals.

The consultation is open for 30 days, concluding on October 16, and OHBA will be submitting feedback on behalf of its industry and the 28 local associations across Ontario.

Canada’s post-secondary education system is globally recognized, attracting students from around the world. However, a severe shortage of student housing threatens this success, posing a broader socioeconomic challenge that demands urgent action.

The Canadian housing market faces a significant supply and demand imbalance, with over four million homes needed over the next six years to restore affordability.* Other policymakers, such as the Canadian Human Rights Commission, believe this number could be even higher. Rising government charges and insufficient construction capacity have exacerbated this crisis.

Without positive government intervention and policy adjustments — such as the recently introduced HST exemptions on rental housing — amid the currently challenged financial environment, the lack of housing starts witnessed in the past two years will persist, particularly in university cities and towns where demand for all housing is exceptionally high. 

The magnitude of the student housing shortfall 

Canada is experiencing an unprecedented shortfall in student housing, with a deficit of over 400,000 beds nationwide.** This shortage is particularly acute in the country’s 20 largest university markets, which host approximately 1.5 million post-secondary students but offer only around 170,000 beds.*** The result? An overwhelming majority of students are forced to compete for already limited and expensive rental housing, exacerbating the housing crisis in local communities. 

In university towns like Guelph, Ontario, the housing shortage is particularly severe, reflecting a broader trend across many such communities. The strain on local rental markets, driven by insufficient student housing, has led to rising rents and forced many, including students, into substandard or overcrowded accommodations. Compounding this issue, the provincial tuition freeze mandate for domestic students has compelled universities to increase international student intake to cover rising costs, further straining the housing supply. 

The role of purpose-built student accommodations 

Purpose-built student accommodations (PBSAs) offer a viable solution to this crisis. Unlike traditional rental units, PBSAs are specifically designed to meet the unique needs of students, providing them with safe, affordable and community-oriented living spaces.

Countries like the United Kingdom and the United States have successfully implemented PBSAs at scale, significantly alleviating housing pressures on students and local communities alike. Off-campus PBSA accounts for 60 per cent in the U.S., 58 per cent in the U.K. and 69 per cent in Australia, but only 29 per cent in Canada.**** The PBSA market in Canada remains underdeveloped.

To close the gap, we must incentivize the development of PBSAs through policy changes, financial support and streamlined regulatory processes. The recent introduction of PBSA in the Government of Canada’s Affordable Housing Fund, which aims to provide low-interest loans for new affordable housing projects, is a step in the right direction, though details have yet to be released. Still, more needs to be done given PBSAs are essential to drive affordable housing and economic growth, by alleviating existing housing stock that can be made available to the general non-student population.

Student housing in Ontario amid ongoing municipal approval challenges 

Bill 185 in Ontario is a significant development for expediting approvals in the student housing sector. This legislation has enabled Forum Asset Management to unlock approximately 1,100 units across projects in Guelph and Toronto, providing University of Guelph and York University students with high-quality, community-focused housing.

However, despite the progress made by Bill 185, developers continue to face headwinds, from continually escalating development charges (which in Toronto, according to data from Scotiabank, have increased by 2,000 per cent over 20 years) to higher construction and financing costs. 

The way forward: Collaborative efforts and policy reform 

The Canadian student housing crisis cannot be solved by developers alone. It requires a combined effort from all stakeholders, including government agencies, educational institutions and the private sector. Key policy changes, such as the inclusion of PBSA in the definition of affordable housing (which would create development charge exemptions) and the adoption of policies similar to Bill 185 across other provinces, are essential to unlocking the potential of this sector. 

Additionally, property tax exemptions for student housing catering to specific university student bases, both on and off-campus, should be created. These exemptions could play a pivotal role in supporting universities’ broader educational and community missions, regardless of whether the housing is university-owned or operated by the private sector.

By lowering the operational costs for student housing providers, such exemptions could directly translate into lower rents for students. This is particularly critical as students often face significant financial pressures, including the burden of repaying student loans upon graduation. Alleviating financial strain allows students to focus more on education and well-being, and less on the economic challenges associated with finding suitable housing.*****

Moreover, universities must take a more active role in facilitating the development of PBSAs on or near their campuses. The QUAD at York University is an example of what can be achieved when public and private entities work together toward a common goal. 

Canada’s housing crisis is multifaceted and impacts all Canadians as well as international students. By adopting supportive policies, we can create more PBSA, which delivers a “two birds, one stone” approach by freeing up traditional housing while providing students with the safe, affordable housing they deserve.

Successful projects such as ALMA @ Guelph and The QUAD at York University offer a blueprint for creating vibrant communities that benefit both students and the broader population. Crucially, these projects require experienced developers who understand the unique needs of students, as PBSAs are far more than just conventional apartment developments — they’re about building communities that foster social belonging, well-being and positive environments essential to the development of our future leaders.

* Canada Mortgage and Housing Corporation, Housing shortages in Canada, Updating how much housing we need by 2030.
** Forum estimate using data from Bonard, Student Housing Market Canada. November 2023, and Statistics Canada.
*** Bonard, Student Housing Market Canada. November 2023.
**** Canada Mortgage and Housing Corporation, Canada’s Housing Supply Shortages: Estimating what is needed to solve Canada’s housing affordability crisis by 2030.
***** Simplydbs. Student Housing Index Survey. Student housing and youth mental health: Survey finds strong correlation.

There’s an interesting pattern emerging in Canadian real estate: ever since the Bank of Canada’s first rate cut, home sales have increased as buyers get improved affordability, though still well below the long-term average.

Price recovery is still yet to be found, and sales volume trended up again 1.3 per cent month-over-month in August, reaching its highest level since January 2020.

At the same time, new listing activity continues to accumulate with new listings climbing for the fourth straight month. Will this trend continue? The market will head into buyer’s market territory, where supply is outgrowing demand.

With that in mind, there are expectations that future rate cuts into 2025 well lead to cautious optimism among potential buyers and investors.

Newly listed properties in Edmonton and Calgary offset GTA decline 

Despite the uptick in sales, the market remains mostly stuck in a holding pattern as many buyers are waiting for improved affordability before making purchases.

The number of newly listed properties increased by 1.1 per cent month-over-month in August, with approximately 177,450 properties available for sale — up 18.8 per cent from the previous year, but still below historical averages.

But for the second month in a row, there was a boost in new supply in Calgary, with Edmonton also witnessing an uptick of listings. The rise of newly listed properties in Edmonton and Calgary offsets a decline in the GTA. 

Consistent, stable increase in sales-to-new-listings

The national sales-to-new listing ratio rose slightly to 53 per cent, matching our record in April. We’re a long way from returning to what was our highest average of sales-to-new listings which we achieved in December 2023: 81 per cent.

We have been relatively and consistently stable ever since our increase from January’s 46 per cent to February’s 52 per cent. So, it may be some news that we’ve matched our April 2024 average. 

Prices

After Canada experienced a record high price in 2022, the market recoiled down about as quickly as it jumped up. Since the bottom of the recoil, we’ve seen very little upward or downward momentum in price. 

Significant fluctuation in GTA condominiums

Toronto area condominium apartments are having a significant fluctuation, with a recoil off of an all-time high price and a few bounces since the blow-off top. 

Source: x.com/Tablesalt13/

It’s clear that the outlook doesn’t look good for 2025, as it seems it will touch the 350 margin — the record low from around 450 in January 2022.

Despite ongoing housing affordability issues across Canada, younger generations remain optimistic about homeownership as a valuable long-term investment. A recent survey by Royal LePage reveals that 84 per cent of Canadians aged 18 to 38 (the “next generation” of homebuyers) feel this way.

Of those who don’t currently own a home, 74 per cent consider homeownership a significant goal they hope to achieve in their lifetime. However, young buyers are well aware of the financial hurdles: 54 per cent believe that owning a home is attainable, 26 per cent are uncertain and 20 per cent doubt it’s achievable for them.

Optimism among challenges

“It is not surprising that young buyer hopefuls see immense benefits in home ownership,” notes Phil Soper, president and CEO of Royal LePage.

“What is both surprising and promising in these findings is the practical and purposeful manner in which these people are tackling affordability barriers. They are well educated on the state of the real estate market and the wide variety of government programs put in place to assist young families find homes. They are hyper-focused on saving for a down payment, which is often the biggest hurdle buyers face. And, they are open to creative solutions, such as shared ownership with friends and family, or buying a property with the express intention of renting a portion of the home to a tenant.”

For many, this drive to own property comes from a desire for long-term housing security. About 73 per cent of next-generation homebuyers prioritize homeownership for a permanent place to live, while 57 per cent believe it provides stability. Additionally, 45 per cent feel renting is restrictive due to tenant-landlord policies, and 32 per cent view homeownership as a critical part of their retirement planning.

Confident in their financial future

Even though many young Canadians face numerous barriers on the path to homeownership, 75 per cent still plan to purchase a home in their lifetime.

“The youngest cohort of homebuyers in Canada has no shortage of barriers on their path to ownership. Though the cost of borrowing has begun to come down, chronic supply shortages have kept housing prices from dropping, even as demand softened under the weight of high interest rates,” says Soper. “Despite these hurdles, the next generation of homebuyers remains committed to their pursuit of owning real estate, and are remarkably optimistic that they can make their dream a reality.”

Among those who are unsure or don’t believe homeownership is possible, 58 per cent cite insufficient household income to cover the costs, and 52 per cent say they lack enough savings for a down payment. Conversely, those confident in achieving homeownership attribute their optimism to diligent saving (45 per cent), career trajectories that promise high income (31 per cent) and sufficient combined household income with a partner (26 per cent).

Sacrificing for the dream of homeownership

40 per cent of those planning to buy a home expect to do so within the next five to 10 years, while 25 per cent anticipate purchasing a home in more than 10 years. Nearly 18 per cent plan to buy a home within the next three years and 13 per cent in three to five years — motivated by the possibility of lower borrowing costs.

To save for a down payment, 47 per cent are setting aside a portion of their earnings regularly, 42 per cent are focusing on maintaining a good credit rating and 34 per cent are cutting back on discretionary spending. 30 per cent live with family to save on rent and increase their savings for a home purchase.

To improve affordability, 45 per cent would consider buying a property with rental income potential and 31 per cent would consider a rent-to-own program. Despite the trend of parental assistance, nearly half (47 per cent) of respondents plan to purchase a home without financial support from family, while 32 per cent expect some form of financial help.

Delaying life milestones to save for a home

High real estate prices are prompting young Canadians to make significant sacrifices. For example, 27 per cent have postponed or canceled travel plans and 21 per cent have delayed purchasing a car to save for a home. Additionally, some are delaying moving out of their parents’ homes (21 per cent), living independently (17 per cent), starting a family (14 per cent) or saving for retirement (11 per cent).

“If policymakers needed yet another example of the impact of our nation’s chronic housing supply crisis on the financial security and well-being of young people, this is it,” Soper stresses.

Policy changes to support first-time buyers

To increase affordability, the Canadian government now allows financial institutions to offer 30-year amortizations for insured mortgages on new construction homes for first-time buyers, up from the previous maximum of 25 years. This policy aims to reduce monthly payments and make homeownership more accessible.

“We know that young Canadians are eager to transition from renting to owning, and most remain hopeful they will. Government policies that make lending practices more favourable for the next generation of homebuyers will help young families achieve their real estate dreams, especially those in the country’s most expensive markets,” adds Soper.

He says Royal LePage hopes to see these initiatives expanded to include resale homes, too.

Review the full report, including regional summaries.

Despite a challenging housing market and affordability issues nationwide, many (38 per cent) of Canada’s prospective first-time buyers under 30 are prioritizing homeownership over other life milestones, like weddings, a recent survey from RBC company, Houseful, shows. For those over the age of 30, this was 18.4 per cent.

No disillusionment

While the younger group is looking to own a home and build equity for their future, they’re well aware of current market challenges: 72 per cent note that market reports make housing seem unattainable and 71 per cent feel that homeownership will be a key piece of their retirement plan.

“Younger adults are increasingly conscious of ongoing housing affordability challenges, which motivates them to secure a financially stable future by seizing saving opportunities earlier,” explains Karen Starns, CEO of Houseful. “After getting a foothold in the market, they can gain the flexibility to pursue other life milestones that are important to them.”

Homeownership: Outranking marriage, travel & vehicles

The survey found that 40 per cent of first-time homebuyers under 30 are making homeownership an important part of their five-year plan. This is more than marriage (24 per cent), travel (30 per cent) and vehicles (33 per cent).

How young buyers are tightening their budgets

Within this same group, 72 per cent are allocating at least some portion of their monthly income toward their first home, while 24 per cent are saving over 15 per cent of their income. To help, they’re also tightening their spending, with 74 per cent of this group reducing discretionary spending like eating out.

“It’s promising to see the common trend among this segment of first-time homebuyers under 30 as they make tangible efforts for long-term financial planning at early stages of their adult lives,” notes Starns.

Of first-time homebuyers in the over-30 group, 47 per cent are putting some of their income toward a home and 61 per cent of this group are decreasing their discretionary spending.

Understanding the costs of homeownership

74 per cent of first-time homebuyers under 30 see a home purchase as the most important financial decision they’ll make in their life (compared to 54 per cent of those over 30). However, 47 per cent of the first group are confident that they understand all the costs associated with buying and owning a home.

As real estate professionals, we’re well aware of the challenges facing today’s housing market, especially for younger buyers. Millennials and Gen Z are finding it increasingly difficult to break into the market due to soaring property prices, high interest rates and the ongoing cost of living crisis.

However, shared homeownership is emerging as a strategic solution, offering a creative pathway to homeownership that aligns perfectly with current market trends.

A shift in homeownership dreams

Homeownership has long been synonymous with stability, wealth and personal success — the quintessential Canadian dream. Yet, this dream seems increasingly out of reach for many younger Canadians.

A recent BMO survey highlights a significant generational shift, with 68 per cent of Canadians believing that buying a home is less attainable now than it was for their parents. This sentiment is even stronger among Gen Z and younger Millennials, who are navigating an unprecedented affordability crisis.

The financial landscape 

The National Bank of Canada reports that housing affordability has reached record lows, particularly in major urban centres. For example, in Vancouver, the cost of a home has surged to 14.5 times the median household income, while in Toronto it stands at 11.8 times and in Victoria, 10.7 times. Meanwhile, the cost of living has increased substantially, with rent prices in urban centres like Vancouver and Toronto averaging $2,500 to $3,000 per month for a two-bedroom apartment and exceeding $3,500 for single-family homes.

These financial pressures highlight the need for innovative solutions to make the dream of owning a home achievable for younger generations once again.

The co-ownership advantage

Shared homeownership offers many benefits that make it an attractive option for prospective buyers. By dividing the costs of a down payment, mortgage and maintenance fees, this approach makes it possible for individuals to enter the housing market sooner and with less financial impact. Sharing the financial responsibility reduces the risk for each co-owner, making the investment and monthly obligations more manageable.

A Royal LePage survey conducted by Leger reveals that six per cent of Canadian homeowners co-own their property with another party, not including their spouse or significant other, and that number is growing. According to a study by Compare the Market, 61 per cent of Canadian respondents expressed willingness to buy a home with friends or family to offset costs. The concept is simple: multiple parties jointly purchase a property, sharing the costs and benefits. 

One approach to shared homeownership involves parents co-signing mortgages to help their children qualify for better financing, leveraging their financial stability for improved terms and interest rates. This has led to more multigenerational homes, where families either live together or parents provide a financial investment while living separately.

Another common structure is Tenancy in Common (TIC), allowing multiple parties to own undivided shares of a property. Each owner holds a specific percentage and has the right to use the entire property, making TIC ideal for friends or family members co-owning a home while maintaining individual ownership stakes.

A case study in modern shared homeownership

Consider the case of Liane Van Raalte, a Squamish, British Columbia-based realtor. She and her family invested in two presale units at Sokana, a Kerkhoff Develop-Build development in Penticton, B.C. Developments like this go beyond simply providing homes; they offer a lifestyle specifically designed for the new generation of homebuyers.

Increasingly, new developments are transforming the concept of co-ownership by including resort-style amenities that elevate the shared living experience. These features make shared ownership even more appealing by providing benefits that individual buyers might struggle to afford on their own.

Co-owners can enjoy state-of-the-art co-working spaces, fitness centers, rooftop pools and communal areas, enhancing their overall lifestyle. This approach shows that shared ownership not only makes homeownership more affordable but also enriches the living experience, making it a highly attractive option for today’s younger generation of buyers.

For Van Raalte, the decision to invest in Sokana was driven by the development’s unique offerings and blend of practical and luxurious amenities. “We wanted to invest in something with our children that they may potentially live in down the road while starting to build equity now, rather than wait until they are more settled in their lives,” she explains.

Key considerations for co-ownership

While shared homeownership offers many benefits, it requires careful planning and clear agreements to ensure a smooth experience. Here are some essential factors to consider when counselling clients on co-ownership options:

1. Legal agreements. Advise clients to draft a comprehensive co-ownership agreement. This document should clearly outline each party’s rights and obligations, detail financial contributions and include processes for dispute resolution and exit strategies. A well-drafted agreement is crucial for protecting all parties involved.

2. Financial contributions. Emphasize the importance of clearly defining each party’s financial responsibilities. This includes the initial down payment, mortgage payments, property taxes and ongoing maintenance costs. Clear financial delineation helps prevent misunderstandings and conflicts.

3. Responsibilities and maintenance. Encourage clients to establish a detailed plan for property upkeep and repairs. This ensures that the property is well-maintained and helps prevent disputes over maintenance responsibilities.

4. Exit strategies. Stress the necessity of a well-defined exit strategy. This should cover the process for selling a party’s share of the property, valuation methods and rights of first refusal for remaining co-owners. Having these details sorted in advance can prevent contentious separations.

5. Conflict resolution. Recommend including mediation or arbitration clauses in the co-ownership agreement. These can help resolve disputes amicably and avoid costly legal battles.

Understanding and promoting shared homeownership can help you better serve your clients, particularly Millennials and Gen Z. This model not only makes homeownership more accessible but also aligns with the evolving needs and financial realities of younger generations. By embracing innovative approaches like co-ownership, you can help turn the dream of homeownership into a reality for more Canadians.

Renting in Canada today can be challenging, but some cities are making it easier with a perfect blend of affordability, quality of life and community. Point2 identified the best cities for renters by analyzing 24 metrics across these areas, ranking Canada’s 100 largest cities.

These cities offer the best of all worlds for renters

In these top-ranking cities, renters can enjoy a well-balanced lifestyle without feeling like they’re in limbo until they can buy a home. Seven cities in Quebec and Cape Breton, Nova Scotia, boast the lowest average rents, all under $1,000, making them ideal for those seeking affordability.

Meanwhile, cities like Toronto, Oakville and Montreal have the largest inventories of rental homes, offering plenty of options, while the highest number of new rental unit starts are found in North Vancouver, B.C.

St. John’s, Newfoundland emerges as a standout city, striking the right balance between economic opportunity and vibrant community life. Cities in Quebec dominate the rankings, with Sherbrooke, Quebec City and others offering the most satisfying renter lifestyles, where tenants thrive rather than just making do.

Economy & housing hotspots: Quebec renters for the win

In terms of economic and housing conditions, 18 out of 19 Quebec cities lead the pack, highlighting their exceptional quality of life for renters.

Wood Buffalo, Alberta, also shines as an affordability haven, where nearly 83 per cent of renters spend less than 30 per cent of their income on housing costs.

Best spots for quality of life: Quebec & Ontario

Quality of life is crucial for renters, and factors like safety, walkability and access to green spaces make British Columbia and Ontario stand out. Vancouver and North Vancouver are praised for their walkability, while Caledon, Ont., boasts the highest greenness score.

The least stressed renters are found where life feels the most comfortable: St. John’s, Saskatoon and Oshawa.

Connecting to community: Victoria, B.C. takes first place

Community connections are vital, and Victoria, B.C., leads in this category with high scores for access to restaurants, museums and educational opportunities. Each province has cities that excel in building a strong sense of community, proving that renters can find a fulfilling lifestyle across Canada.

Review the full report here.

There’s speculation that Canada’s housing market is headed in a direction that will land us in a foul-up similar to much of Europe, with housing prices so out of reach that many people will never be able to afford a home unless they inherit one.

In a country like ours, recognized globally for its opportunities, this harsh forecast comes as a shock. But experts aren’t denying that it’s a possibility.

The housing supply crisis’ magnitude

“It’s a valid question,” says Kevin Hughes, deputy chief economist with the Canada Mortgage and Housing Corporation (CMHC). “Housing affordability and the housing crisis have been in the news for several years now.”

To get an idea of the magnitude of the housing supply crisis, CMHC recently updated its Supply Gaps Estimate report in hopes of determining how many housing units beyond current trends would need to be built between now and 2030 to restore affordability. The number CMHC came up with is 3.5 million.

“That’s a lot,” Hughes stresses. “I’m not saying it’s a realistic goal. But it’s what we’re looking at.”

It would in fact be an unprecedented boost in construction, which would come at what many consider an unacceptable societal cost, majorly stressing the system and creating countless spin-off issues around infrastructure, traffic and the environment.  “We can’t look at housing in isolation of these other factors,” Hughes asserts.   

What’s realistic?

Reading between the lines, such an extreme level of supply may very well not be achievable, despite ongoing government initiatives at all levels, including the recent federal budget, which lays out a plan to unlock 3.87 million new homes by 2031. 

According to the CMHC report, Ontario and British Columbia continue to be Canada’s least affordable housing markets, with the lion’s share of the housing supply gap. As financial pressure mounts for Canadian households in large centres battling high prices and insufficient supply, “more people get priced out and move elsewhere,” notes Hughes.

Increased population density is another path forward for cities in this situation, he explains. 

“There are roughly 4,000 people per square kilometre in Montreal, and Toronto is about the same. That can go up to 7,000 and above in some centres in Europe. The starkest comparison is Paris, where there are 20,000 people per square kilometre.”

Yowza. No wonder France is experiencing a major lack of housing supply.

Similar trends around the globe

In cities worldwide with similar issues around population and housing shortages, experts have observed that there tend to be:

• greater numbers of compact housing units being built,
• more focus on public transit over cars in the downtown core,
• increased cohabitation and communal living,
• more people commuting greater distances,
• a significant percentage of young people living at home who’d normally have moved out and
• mortgages being held for longer periods, even well past retirement.

All of these things are happening to some extent in Toronto, Vancouver and Canada’s other large, busy cities.

“We’re already seeing density increasing,” Hughes affirms.

Many possible future paths — including those like Europe’s

The True-North-strong-and-free is shifting to a new normal. Take the example of commuting. “Before, no one would travel an hour to get to work. Now no one gives it a second thought,” Hughes points out. “What people think of as ‘normal’ changes. When we think we’ve reached the limit, we realize we haven’t.” 

He continues: “The future in Canada will likely be a mixture. We’ll see more supply, more density and more people moving elsewhere. The variables aren’t mutually exclusive. It’s never all or nothing. It could go many ways with many variables. Nothing is inevitable and none of this will happen overnight. There are many possible paths.”

So yes, it seems that watching our housing market become more like Europe’s may be among these. 

“I’ve heard that,” confirms Valerie Dooley, a sales rep with Forest Hill Real Estate in Toronto who’s lived in Europe. “Multigenerational living is common in countries like Italy,“ she adds. “I think we’re starting to move more in the same direction.”

Another outlook

Despite perceptions to the contrary, Re/Max Canada president Christopher Alexander states that homeownership rates throughout much of Europe remain high, “upwards of 70 per cent in places like Malta, Estonia, Hungary and more.” (At the time of the last census in 2021, Canada’s homeownership rate sat slightly beneath that, at 66.5 per cent — a 20-year low.) 

Alexander insists that Canada still has a lot of affordable markets. “Many people tend to make affordability comparisons to our most expensive and sought-after cities when it’s not realistic for first-time homebuyers to expect to buy their dream homes at their first purchase,” he points out.

The best advice he can give homeowners, he says, is to get into the market within their means and start building equity. “That’s a surefire way to be able to eventually afford the home you want in the city you want.”

And in case of any lingering doubt, Alexander asserts that real estate in Canada continues to be a good investment.

“Canada is aggressively trying to build more homes and create greater affordability. I’m confident that homeownership will be in reach for most people for years to come.”