True cost of a housing crisis runs deep

By Richard Lyall

for The Toronto Sun

Oct. 9, 2026

The real cost of Canada's housing crisis can now be measured in something far more important than dollars and cents: the health, stability and well-being of Canadians.

Often, the magnitude of the problem is gauged by the price of a home, the cost of renting or number of residential starts. But while these metrics matter, they don’t fully capture what is at stake.

At a recent housing summit hosted by RESCON, Paul Smetanin, president and CEO of the Canadian Centre for Economic Analysis (CANCEA), delivered a powerful message. His research suggests that housing affordability has evolved from an economic challenge into a public health issue, one with consequences that reach into nearly every aspect of Canadian life.

The findings are difficult to ignore. Nearly one in three households in the Greater Toronto Area lives in unaffordable housing, spending more than 30 per cent of before-tax income on shelter.

Many households are spending more than half their income simply to keep a roof over their heads. When so much income is devoted to housing, families inevitably sacrifice elsewhere. Food, transportation, education, recreation and even health-related expenses are squeezed. Unexpected costs such as a medical bill or a car repair can quickly become an emergency.

The result is not merely economic hardship. It is persistent stress, insecurity and a diminished quality of life.

Using more than a decade of survey data and well-being research, CANCEA found a direct relationship between housing affordability and life satisfaction.

People living in affordable housing reported significantly higher levels of well-being than those facing housing stress. Households spending between 30 and 50 per cent of income on housing experienced meaningful declines in life satisfaction, while those spending more than half their income on shelter fared even worse.

To put those findings into perspective, CANCEA estimated the social value cost of housing unaffordability in Ontario at $26.2 billion annually. That represents lost well-being, lost opportunities and the accumulated effects of chronic financial strain across society.

Perhaps most startling was the comparison to major illnesses. Using methods commonly employed in health research, CANCEA found that the societal burden associated with housing unaffordability is approximately one-and-a-half times greater than the burden of cancer and approaches the burden associated with heart disease and diabetes.

Think about that for a moment.

We would never accept a disease that diminished quality of life on such a scale without mobilizing public resources and policy responses. Yet housing unaffordability continues to affect millions of Canadians every day.

Housing has therefore become one of the defining issues of our time.

Unaffordable housing affects our workforce mobility, productivity, family formation, mental health, community cohesion and confidence in the future. When people can’t secure stable housing, they delay major life decisions such as starting families or changing careers.

This is not to say that Canada hasn’t made meaningful progress on housing reform. Governments have finally recognized the severity of the challenge and introduced measures aimed at increasing supply and improving affordability.

However, while we are heading in the right direction, we have much more to do.

Canada is not building enough homes. While annual housing starts are around a quarter-million units, estimates suggest the country requires roughly 400,000 to 470,000 new homes each year to address affordability pressures and close the accumulated supply gap.

To encourage investment in new housing supply, barriers must be reduced, approvals must be accelerated, and development charges and taxes on new housing must be permanently reduced.

Jason Mercer of the Toronto Regional Real Estate Board noted that affordability has improved substantially over the past two years. Mortgage costs have eased, home prices have softened and the income required to purchase a typical GTA home has fallen considerably. Yet many buyers remain hesitant. Confidence, not affordability alone, is now the primary obstacle. Economic uncertainty, trade concerns and interest-rate expectations continue to keep households on the sidelines.

At the summit, David Coletto of Abacus Data reminded attendees that housing is fundamentally about security and opportunity. His research shows that many Canadians, particularly younger generations, no longer believe the traditional path from education to employment to homeownership is guaranteed.

That growing sense of precarity is reshaping attitudes toward the future and eroding confidence in the social contract that many Canadians once took for granted.

If we truly want healthier families, stronger communities and greater economic opportunity, we must treat housing affordability with the urgency it deserves.

When one-third of households are struggling to afford a place to live, the problem is no longer confined to the housing market. It belongs to all of us.

Richard Lyall is president of the Residential Construction Council of Ontario (RESCON). He has represented the building industry in Ontario since 1991. Contact him at media@rescon.com.