Why Young Canadians Are Losing Hope
(And What We Can Do About It)

Let me paint you a picture: You're a 28-year-old professional making $60,000 a year in Toronto. That’s a solid salary by most standards. But when you look at housing prices—where the average home costs $1.1 million—that income suddenly feels like pocket change. And it’s not just Toronto. Across Canada, young people are facing what might be the most challenging housing market in our nation’s history.

The Happiness Freefall: A Generation in Crisis

Recent data from the CD Howe Institute reveals a startling trend: Canadians under 30, once the happiest demographic, are now the least happy. In just one generation, the shift has been dramatic. Canada now ranks 58th in happiness for young people, compared to 8th for those over 60. The decline in happiness among under-30s has been three times faster than other age groups, and a staggering 78% of young Canadians cite housing costs as their number one financial stressor.

So, what’s driving this crisis?

The Perfect Storm: How Housing Became Unaffordable

For decades, homeownership was an achievable milestone. In 1980, the average home cost about three times the median household income. Today, that ratio has skyrocketed to ten times. Cities like Toronto and Vancouver have reached extreme levels, with income-to-home price ratios at 13.3x and 12.3x, respectively. Even smaller cities like Halifax have seen affordability vanish, with housing prices doubling in just a decade.

For those hoping to rent, the picture isn’t much brighter. A one-bedroom apartment in Toronto now averages $2,500 a month. To comfortably afford this under the standard 30% income rule, you’d need to make at least $90,000 a year. The result? More young adults stuck in rental limbo, unable to save for a down payment, and facing an uncertain financial future.

The Construction Conundrum: More Homes, Higher Prices?

At first glance, it seems like Canada is building plenty of homes. In fact, we construct more per capita than the UK, the U.S., and Australia. Yet, prices continue to soar. Why? One major reason is the type of housing being built.

Canadian cities are largely stuck in a binary trap: high-rise condos, which are expensive to build and purchase, and single-family homes, which are scarce and increasingly out of reach. Missing from the equation are townhomes, duplexes, and low-rise apartments—affordable options that provide density without driving costs sky-high.

The Ripple Effects: How the Housing Crisis is Reshaping Society

This affordability crisis isn't just about where people live; it’s affecting every aspect of life. The average age of first-time homebuyers has risen to 36, up from 29 in 1990. Birth rates have plummeted, with Canada now averaging just 1.4 children per woman. More young adults are staying in multi-generational households, a trend that has increased by 45% since 2001.

Beyond family life, the crisis is stalling economic productivity. When workers can’t afford to live near job centers, commutes lengthen, efficiency drops, and cities lose talent to more affordable regions. This lack of affordability is also fueling a long-term retirement crisis, with many young Canadians delaying savings or abandoning homeownership entirely—depriving them of the property wealth that previous generations relied upon for financial security.

Breaking the Cycle: Real Solutions That Could Work

The good news? Solutions exist. Here’s how we can turn the tide:

1. Legalize Gentle Density Nationwide

   • Vancouver’s laneway homes have created over 4,000 units.

   • Montreal’s plex conversions have kept rents 30% below Toronto’s.

   • Calgary’s secondary suite program has expanded rental options.

2. Target Speculation Without Hurting Supply

   • New Zealand’s bright-line test taxes quick property flips.

   • Singapore imposes a 30% additional buyer’s tax on foreign investors.

   • Berlin enforces rent controls with vacancy taxes to prevent artificial shortages.

3. Revolutionize Construction

   • Modular and prefabricated homes are 30% cheaper and 50% faster to build.

   • 3D-printed communities, like the 100-home project in Ontario, offer cost-effective housing solutions.

   • Co-housing models with shared amenities provide affordable alternatives to traditional homeownership.

4. Create “Next-Tier” Cities

   • Investing in transit for mid-sized cities like London, ON, can reduce pressure on major urban centers.

   • Developing tech hubs and offering remote work incentives can spread economic growth beyond Toronto and Vancouver.

The "Five Ways Home" Strategy

At a recent event, we had the privilege of hearing Dr. Franz Hartmann from the Alliance for a Livable Ontario (ALO) discuss their "Five Ways Home" strategy—a plan that addresses affordability while protecting the environment. 

Attending the Brampton Environmental Alliance Annual General Meeting on March 19th, 2025

We encourage you to check our their website and dive deeper into their action plan, but essentially, their core action steps are:

• Building in the right places: We need to focus on housing development in existing towns and suburban areas rather than sprawling into farmland and sensitive ecosystems. Strategic development can make smaller cities more attractive while reducing pressure on major urban centers.

• Diverse housing types: The market is flooded with high-rise condos and single-family homes, yet affordability remains an issue. The solution lies in multiplexes, low-rise apartments, and a broader mix of housing options to meet various needs.

• Smarter, faster construction: Reducing reliance on carbon-intensive materials like concrete, embracing modular homes, and training more skilled workers will speed up and lower the cost of building.

• Investing in non-market affordable housing: Governments must play a role in ensuring housing isn’t just a commodity but a fundamental necessity, supporting social and community-driven housing initiatives.

• Sustainable, livable communities: Affordability isn’t just about housing costs—it’s about creating neighborhoods with schools, grocery stores, parks, and services that improve quality of life.

What You Can Do Today

While systemic change takes time, individuals can take action now:

• Advocate at local council meetings—zoning changes often start at the community level.

• Explore alternative paths like co-ownership models or rent-to-own agreements.

• Get financially creative with strategies that make homeownership more accessible.

• Vote for housing-focused policies in every election.

This crisis took decades to create, and it won’t be solved overnight. But with smart policies, community action, and a little Canadian ingenuity, we can rebuild an affordable future.

What’s your experience with housing affordability? 

Sources:

• CD Howe Institute - "Generation Unaffordable" (2024)

• CMHC Housing Supply Report (2023)

• OECD Affordable Housing Strategies (2022)

• StatsCan Household Survey Data (2024)

• Canada’s Housing Atlas

• The Missing Middle Project

• Happy Cities Initiative (Well-being research)

• How Canada's Housing Crisis is–The Canadian Real Estate Investor – Apple Podcasts
  
  
• Five Ways Home
  
  
• BEA Hosts 2025 Annual General Member Meeting – BEA