Despite minor shifts in the housing market, prices remain too high for both buyers and renters, pushing families into instability and homelessness. The National Housing Strategy (NHS), designed to solve this crisis, has spent billions, yet the situation is more dire than ever. The promise of affordable housing remains elusive as market rents continue to rise and homelessness reaches record highs. The government’s solution, launched in 2017, is proving to be a disaster, and it’s time to examine why.
A $115 Billion Plan That Misses the Mark
The NHS was intended as a massive, long-term intervention to restore housing affordability across Canada. With over $89 billion already allocated and another $115 billion pledged through 2024, the program aimed to solve the housing crisis by increasing supply. Most funding has been directed to new construction, repair, and renewal of housing units through the Canada Mortgage and Housing Corporation (CMHC).
However, seven years and tens of billions later, housing affordability is worse than ever. The NHS has largely benefited private developers, offering low-interest or forgiven loans to spur construction, but it hasn’t produced the necessary volume of genuinely affordable housing. The most significant expenditures have focused on repairing existing units rather than building new ones. Additionally, the details surrounding loans and financing remain opaque, making it difficult to track how much public money has gone directly into developers’ pockets.
Where the National Housing Strategy Went Wrong
The NHS primarily operates by assuming that increasing the housing supply will lower prices. In theory, more homes should drive down costs, but the results have been underwhelming in practice. For example, the CMHC reports nearly $20 billion in funding for constructing and repairing 225,000 units. Yet, only 190,000 of those are designated as “affordable,” and even those units often fail to meet the affordability needs of Canadians.
The largest NHS investment—$2.68 billion—was allocated to repair Toronto’s existing housing infrastructure, which, while critical, doesn’t solve the need for new affordable housing. The second-largest project, a $444 million loan to West Don Lands, has produced units where only 30% are considered affordable, and even those are priced at 80% of average market rent. The result is a program that props up market rates rather than brings them down.
A glaring example of failure is Concert Properties’ 55One complex in Coquitlam, BC. With a $109 million loan from the NHS, Concert Properties built 148 “affordable” units, but the rent for a one-bedroom apartment ranges from $2,450 to $2,600 per month—hardly affordable for most working Canadians.
Developers Win, Canadians Lose
One of the NHS’s critical flaws is its reliance on private developers to create affordability. While developers receive massive government loans and funding, they are still profit-driven entities with little incentive to prioritize genuinely affordable housing. Concert Properties, for example, boasts $9 billion in assets but has produced apartments that cater to the middle or upper-middle class. Rent prices, often pegged at market rates, make it impossible for low-income Canadians to benefit from these housing projects.
In Edmonton, a similar pattern emerges. The Rundle at Riverview Crossing, built by a private developer and funded with $46 million from the NHS, offers no affordable units. The not-for-profit housing provider that eventually purchased the building is charging $2,000 per month for a one-bedroom apartment—the average market price in the city.
This focus on market-driven solutions fails to address the affordability gap and exacerbates it. By pumping billions into private developers, the government inflates demand for high-end housing, driving up prices for everyone else. The NHS, rather than solving the crisis, has empowered corporate interests to dominate the housing market further, leading to what some call “neoliberal feudalism.”
A Neoliberal Approach to Housing Won’t Solve the Crisis
The failure of the National Housing Strategy is rooted in its neoliberal approach, which relies on the private sector to solve public problems. By funnelling government funds to corporations and developers, the NHS encourages the very market behaviour that caused the crisis in the first place. Instead of focusing on social housing or government-controlled affordable units, the strategy pushes money into the hands of billion-dollar corporations that are more concerned with profit margins than public welfare.
Mid-term audits by the Parliamentary Budget Office and the CMHC found that the NHS is falling short. Few of the completed projects are accessible to low-income households, and overall funding for families in need has decreased despite the program’s massive financial footprint.
Canada faces a housing bubble, and the NHS is doing little to deflate it. As the government pours more money into the hands of developers, housing prices continue to soar, making homeownership an impossible dream for many Canadians. Renters fare no better, with market rates consistently outpacing inflation, leaving many on the brink of eviction or homelessness.
Downtown Eastside Vancouver Highlights the Failure of “Affordable” Housing
Nowhere is the disconnect between policy and reality more evident than in Vancouver’s Downtown Eastside (DTES). Despite being one of Canada’s most vulnerable communities, the so-called “affordable” housing solutions are out of reach for many who need them most. Nearly 70 percent of social housing units in Vancouver are rented at the “low end of the market,” which is around $2,000 per month for a one-bedroom apartment. For someone on social assistance, disability, or a basic pension, this rent exceeds their entire monthly income. Even for those earning minimum wage or the median income, such rents swallow a significant portion of their earnings.
As a result, much of the social housing built under the National Housing Strategy effectively excludes low-income residents, leaving many people with no viable options. The Ministry of Social Development and Poverty Reduction estimates over 3,500 people in Vancouver have no fixed address. This figure only counts homeless individuals receiving social assistance, overlooking countless others—seniors, those without social benefits, and the working poor—who are similarly left out.
The city’s records paint a grim picture. A December 2022 memo revealed that out of 40 new social housing projects approved or under development, only 13 included shelter-rate units. This means that 27 of these buildings are not accessible to those living on the margins, perpetuating the cycle of homelessness. In the DTES, where temporary shelters are also in short supply, this exclusion further exposes the gap between policy intentions and actual outcomes, illustrating the urgent need for real solutions that cater to the city’s most vulnerable residents.
A New National Housing Strategy
The current National Housing Strategy isn’t working. Despite the enormous financial commitments, the program has failed to deliver affordable housing to those most in need. Now, a complete rethink of how Canada approaches the housing crisis is needed.
First, the government should focus on building social housing—units owned and operated by public entities, not private developers. These units should be truly affordable, with rents based on income rather than market rates. Additionally, Parliament must implement rent controls that apply universally, even when units become vacant. This would prevent landlords from jacking up prices between tenants, a practice that has contributed to the housing bubble.
Second, the government must take steps to decommodify the housing market. This can be done by regulating housing as a public good and, in some cases, through compulsory purchasing of properties owned by prominent real estate conglomerates. By bringing housing under public control, Canada can stabilize the market and ensure that housing is available to everyone, not just the wealthy.
Restoring Affordability in Canada
Canada’s housing crisis is not just a problem of supply—it’s a crisis of affordability driven by a market that prioritizes profits over people. The National Housing Strategy has fallen short, allowing developers to charge market rates with little accountability. If Canada is to solve its housing crisis, the government must take bold, decisive action to protect its citizens.
It’s time to stop treating housing as a speculative asset and treat it as a fundamental right. Canada can reverse course and restore housing affordability with new policies focused on social housing, rent control, and market regulation.
For Canadians feeling the squeeze, the need for change is urgent. Housing is more than a commodity—it’s the foundation for a secure, dignified life.
Denise is a long-time advocate for affordable and dignified housing in the Downtown Eastside. Having lived in SROs and volunteered in homeless shelters, she brings a personal understanding of the housing crisis and its impact on the community. Her work reflects years of lived experience, frontline work, and commitment to creating better living conditions for DTES residents.
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