Politicians have a lot riding on housing initiatives

By Michael Giles

July 6, 2026

Over the course of history in all countries there are major issues that drive the political agenda and ultimately impact electoral outcomes. 

One has only to gaze over political history to see this manifested. Look upon the Goods and Services Tax introduced during the era of Prime Minister Brian Mulroney. Or the major Free Trade debate during the 1988 election that the same prime minister was able to use to defeat then Liberal Leader John Turner. 

Scandal often drives these kinds of issues. Think of Watergate under President Richard Nixon and subsequently Gerald Ford. In Ontario’s history, an early election call combined with some scandals sealed the fate of then Liberal Premier David Peterson who went from an historic win to a devastating loss. 

One common thread that impacts electoral success is the economy and issues related to it.  Think of former Premier Bob Rae whose NDP government was wiped out in 1995 after five years of perceived fiscal mismanagement and a very challenging economy for voters.

One can also point to the presidency of George H. W. Bush which in 1992 saw him lose to then Governor Bill Clinton, an election that was all about the domestic economy. Keep in mind that the year before (1991) following the first Gulf War, Bush had a 90-per-cent approval rating.

The point being that while there are broad forces that drive the political winds, these manifest themselves in specific issues that directly affect voters. And the price to pay for governmental failure or ineffectiveness can be very high.

The issue of housing is unquestionably one of those issues. Think back to only a few years ago when everything in the housing sector seemed to be moving along well. It did not take long for a major shift to take place, and we find ourselves now firmly implanted in one of the most impactful housing affordability and supply crises ever seen. In fact, it could be well argued that the Greater Toronto Hamilton Area and southwestern British Columbia are among the worst regions in the world in terms of housing. 

While all three levels of government in Canada, particularly in these areas, were slow to recognize the seriousness of the situation they sure do now. Two or three years ago, governments started announcing things like an elusive commitment in Ontario to build 1.5 million homes over 10 years. The federal government under former Prime Minister Justin Trudeau launched a number of relatively mediocre initiatives and municipalities made proclamations that were really just noise.

Recognizing that Canadians in all parts of the country had transitioned from being concerned to outright panic, governments started really paying attention. 

In Ontario, new measures were introduced but this became highly intensive under current Municipal Affairs and Housing Minister Rob Flack who is undoubtedly the most impactful provincial housing minister in generations.

At the federal level, things accelerated enormously with the ascendancy of Prime Minister Mark Carney. There has been a flurry of initiatives from the federal government since he took office last year.

Municipally, there was the usual foot-dragging and mediocrity until both the feds and Ontario ignited a fire under them and began to impose new policies to support residential housing construction. Their apparent slumber has been involuntarily interrupted. 

What does all of this mean? 

Politically, much has changed. Housing is now a third-rail issue and with all the initiatives that governments have advanced, all eyes will be on if and how this moves the dial in terms of addressing the housing affordability and supply crisis in this country.

This issue also operates in parallel to broader affordability concerns. Bottom line is simple – with all that has been done, if things don’t change expect severe political consequences in the months and years ahead and it won’t be pretty to watch.