New Insights from the 2022 Canadian Housing Survey on Housing Needs and Affordability

The 2022 Canadian Housing Survey (CHS), conducted by the Canada Mortgage and Housing Corporation (CMHC) in partnership with Statistics Canada, sheds light on the evolving housing challenges faced by Canadians. By focusing on affordability, core housing need, and the disparities faced by different demographic groups, the latest survey results offer a clearer picture of Canada’s housing landscape. 

The Canadian Housing Survey, conducted biennially by CMHC and Statistics Canada, plays a crucial role in shaping housing policies across the country. By collecting essential data on the living conditions and housing experiences of Canadian households, the survey offers valuable insights into the needs of communities, especially those in vulnerable groups identified by the National Housing Strategy (NHS). Its findings help identify housing challenges, such as affordability and accessibility, which are key factors in developing effective housing programs and support services. This survey remains a vital resource in improving housing outcomes for Canadians. 

Why This Research is Important in 2024

Understanding housing in 2024 requires a close look at the trends and challenges highlighted in surveys like the Canadian Housing Survey (CHS). By examining the data collected over time, we can see how housing needs have evolved and how current issues, such as affordability and core housing need, continue to affect Canadians. The CHS not only tracks these long-term trends but also reveals emerging patterns, like the disproportionate impact on racialized and Indigenous households, the ongoing struggles of renters, and the rise in financial hardship due to increased shelter costs. 

With housing costs continuing to soar and income levels lagging behind in many regions, the data from the CHS allows us to contextualize these problems within a broader social and economic framework. By identifying which communities and demographics are most affected, policymakers and housing advocates are better equipped to develop targeted solutions. 

For 2024, the insights from the 2022 survey show us that housing affordability is still a pressing concern. The nearly doubled percentage of Canadians facing financial difficulties due to increased rent or mortgage payments reflects the broader economic conditions Canadians are grappling with today. Rising interest rates, inflation, and the strain on the rental market underscore the need for affordable housing strategies. 

By analyzing the CHS data, we also gain a deeper understanding of the gaps in housing equity. Knowing that racialized and Indigenous households continue to experience higher levels of core housing need offers a critical opportunity to tailor support to these communities. The 2024 housing landscape remains complex, and the findings from the survey help guide informed decisions to ensure all Canadians, especially the most vulnerable, have access to safe and affordable housing. 

The Role of the Canadian Housing Survey

The CHS is a critical tool for understanding and addressing Canada’s housing needs. It provides invaluable insights into the experiences of Canadians, particularly those in vulnerable groups. This information is essential for policymakers, researchers, and housing advocates as they work to create targeted solutions that ensure all Canadians have access to affordable, adequate, and suitable housing. 

As housing affordability continues to challenge Canadians across the country, the data from the 2022 CHS will play a key role in shaping future housing policies aimed at improving living conditions and reducing financial hardship for those in need. 

Housing Affordability Returns to Pre-Pandemic Levels

According to data from Statistics Canada, the share of households spending 30% or more of their income on shelter costs returned to pre-pandemic levels in 2022. Roughly 22% of Canadian households faced unaffordable housing costs, a figure nearly identical to 2018 (21.5%). Renters were disproportionately affected, with 33% spending over 30% of their income on shelter, more than double the rate of homeowners (16.1%). 

Notably, households in social and affordable housing saw a decline in unaffordable housing from 2018, as rent increases were outpaced by income growth. By 2022, 25.4% of these households spent 30% or more of their income on shelter, down from 29.4% in 2018. Despite these improvements, the broader housing market pressures—especially the surge in rent costs for new tenants—continue to drive dissatisfaction, with many new renters reporting higher dissatisfaction with affordability than ever before. 

This data from Statistics Canada underscores how, despite small gains in certain segments of the housing market, affordability remains a critical challenge, affecting renters, new homeowners, and those seeking social housing. 

Affordability: The Primary Driver of Housing Challenges

Affordability remains the dominant issue for Canadian households struggling with housing. In 2022, 88.4% of households in core housing need cited affordability as the key factor. The widely accepted threshold for housing affordability is spending no more than 30% of pre-tax income on shelter costs. When this limit is exceeded, many households find themselves facing difficult financial decisions, often having to choose between paying for shelter or other essential needs. 

In contrast, issues like inadequate housing, which refers to homes needing major repairs, affected 16.8% of households in core housing need, while 9.7% were in unsuitable housing, meaning there weren’t enough rooms for the size and composition of their household. 

Stability in Core Housing Need, but Renters Remain Vulnerable

The concept of core housing need refers to households living in housing that is unaffordable, inadequate, or unsuitable and who also cannot afford alternative, suitable housing in their community. Between 2018 and 2022, core housing need rates remained relatively stable at around 11%. However, the numbers dipped to 9.8% in 2021 due to temporary financial support such as the Canada Emergency Response Benefit during the COVID-19 pandemic. 

Despite this overall stability, renters face a far more challenging situation compared to homeowners. In 2022, 22.1% of renters were classified as being in core housing need, compared to just 6.1% of homeowners. Renters in social and affordable housing faced the highest burden, with almost a third (30.8%) in core housing need. 

How Core Housing Need Impacts Overall Wellbeing

Core housing need, defined as living in housing that is unaffordable, unsuitable, or inadequate, has far-reaching effects on individuals' wellbeing. For many Canadians, the inability to access safe and affordable housing creates a ripple effect that influences multiple aspects of life, including mental, physical, and financial health. 

Mental Health Strain 

Housing insecurity is strongly linked to increased stress and anxiety. When individuals or families face uncertainty about their living situation—whether due to unaffordable rent, fear of eviction, or overcrowded living conditions—the psychological toll can be significant. Constant worry about keeping a roof over one’s head can lead to chronic stress, which is associated with anxiety, depression, and even physical health issues such as cardiovascular disease. According to studies, the persistent pressure of inadequate housing can also reduce overall life satisfaction and contribute to a sense of hopelessness, particularly in vulnerable populations. 

Physical Health Effects 

Poor housing conditions can also have direct physical health consequences. Inadequate housing—such as homes in need of major repairs, or those with poor insulation, ventilation, or mold—can exacerbate respiratory issues and other chronic health conditions. Overcrowded spaces increase the risk of illness transmission, while lack of access to basic amenities like clean water or proper sanitation further compounds health risks. Children, in particular, are more vulnerable to the long-term effects of growing up in such environments, which can negatively impact their development, academic performance, and overall wellbeing. 

Financial Health and Stability 

Housing costs are often the largest expense for households, and when they consume more than 30% of household income, financial strain becomes inevitable. Many Canadians facing core housing need are forced to make difficult decisions between paying for rent and other essentials like food, transportation, or healthcare. This financial instability often leads to a cycle of debt, as individuals may take on loans or cut back on necessary expenses to make ends meet. Moreover, housing instability can negatively affect job security. Unreliable or unstable living situations may impact a person’s ability to maintain steady employment, adding to the financial stress. 

Impact on Family Dynamics 

For families, the stress of housing insecurity can strain relationships and alter family dynamics. Parents experiencing housing-related stress may have less emotional energy to engage with their children, leading to tensions and disruptions in the home environment. Overcrowded living spaces can lead to conflict and a lack of privacy, contributing to strained relationships between family members. Children growing up in unstable housing situations may also experience social and emotional difficulties, as well as challenges in their educational performance. 

Inadequate housing doesn't just affect those living in it—it has broader societal implications, contributing to inequality, poor health outcomes, and reduced economic productivity. Addressing core housing need is essential for improving the quality of life for Canadians, and ensuring that everyone has a safe, stable, and affordable place to call home. 

Financial Hardship on the Rise

Perhaps one of the most concerning findings of the 2022 CHS is the increasing number of Canadians struggling with housing-related financial hardship. The percentage of households that reported experiencing financial difficulties due to rising rent or mortgage payments nearly doubled between 2018 and 2022. In 2018, 12.2% of Canadians said they "often" or "sometimes" faced financial strain due to housing costs. By 2022, that figure had jumped to 22.6%. 

This steep increase reflects the broader trend of rising living costs across Canada. As more Canadians grapple with inflation, higher interest rates, and skyrocketing housing prices, financial hardship due to housing costs is likely to continue growing. 

Regional Variations in Housing Need

Housing challenges also vary significantly by region. In 2022, British Columbia and Ontario reported the highest rates of core housing need, at 16.0% and 14.5%, respectively. In contrast, Québec had the lowest rate, with only 5.5% of households in core housing need. 

Urban areas reflect these disparities. Cities like Toronto (17.4%) and Vancouver (17.3%) exhibited some of the highest rates of core housing need, while Québec City saw the lowest, at just 4.1%. These differences point to the varying cost of living and housing availability across provinces and municipalities. 

Disparities Among Racialized and Indigenous Households

The 2022 CHS highlights that housing challenges disproportionately affect racialized and Indigenous households. In particular, 14.1% of racialized households were in core housing need, compared to 11.6% of all households. Certain racial groups, such as West Asian (27.7%) and Korean (26.9%) households, experienced significantly higher rates of core housing need, while Filipino households had the lowest rate at 6.3%. 

Similarly, 17.9% of Indigenous households were in core housing need, a notably higher rate than the general population. This finding highlights the ongoing need for targeted housing programs that address the unique challenges faced by these communities. 

Canada’s Commitment to Solving the Housing Crisis

Over the past decades, Canada’s housing crisis has worsened due to a combination of factors. Restrictive planning policies, high fees from municipalities, and lack of supportive housing investments from provincial governments have all contributed to rising costs and construction delays. While Canada’s population grew rapidly, the pace of home construction failed to keep up, leaving many Canadians, particularly younger generations, struggling to find affordable housing. 

In 2017, the federal government began reinvesting in housing after decades of underinvestment. This led to a surge in housing construction, including efforts to support low-income and vulnerable Canadians, encourage rental developments, and help first-time homebuyers. Despite this progress, the post-pandemic world introduced new challenges. Higher interest rates slowed home construction, and more people entered the housing market as Canada’s population continued to grow, exacerbating affordability issues. 

Today, Canada faces one of its greatest social and economic challenges: a national housing crisis. Housing costs have risen not just in major cities but also in small towns, rural areas, and northern communities. Many Canadians, from middle-class families to newcomers and racialized communities, are feeling the strain. An entire generation of young Canadians is questioning whether they will ever be able to own a home. 

Canada’s housing plan aims to restore the dream of homeownership and affordable rent by addressing the root causes of the crisis. The government is committed to building homes at an unprecedented pace by reducing construction costs, increasing the housing workforce, and streamlining regulations to accelerate homebuilding. Additionally, there is a focus on supporting vulnerable populations, including Indigenous peoples, seniors, and equity-deserving communities, to ensure every Canadian has access to safe and affordable housing. 

This challenge cannot be solved by the federal government alone. A "Team Canada" approach is required, with provincial, territorial, and municipal governments playing a critical role in increasing housing supply and supporting affordability efforts. By working together, Canada can rise to meet this crisis and build the homes that Canadians desperately need. 

The National Housing Strategy: A Comprehensive Toolkit for Addressing Housing Needs

The National Housing Strategy (NHS) represents Canada’s dedicated effort to tackle the complex and varied housing challenges across the country. Designed as a multifaceted toolkit, the NHS brings together a range of initiatives aimed at building new affordable housing, modernizing existing stock, and fostering innovation within the housing sector. By coordinating efforts across different levels of government and engaging community organizations, the NHS is working towards creating sustainable and inclusive housing solutions for all Canadians.

Building and Renewing Affordable Housing

A key component of the NHS is its focus on expanding and revitalizing the affordable housing supply. The strategy includes several targeted programs:

• Affordable Housing Fund: New Construction provides low-cost repayable and forgivable loans to support the development of new affordable housing units, including shelters, transitional, and supportive housing.

• Affordable Housing Innovation Fund supports innovative building techniques and unique ideas that aim to transform the affordable housing landscape. This initiative encourages the development of more sustainable and cost-effective housing solutions.

• Apartment Construction Loan Program offers low-interest loans to stimulate the construction of rental apartment projects throughout Canada, promoting long-term rental solutions in various communities.

• Federal Lands Initiative repurposes surplus federal lands and buildings to create affordable, sustainable, accessible, and socially inclusive developments, leveraging underutilized public resources for housing.

These programs are designed to boost the construction of affordable housing at a time when demand significantly outstrips supply.

Modernizing Existing Housing

In addition to new construction, the NHS emphasizes the importance of modernizing and maintaining the existing affordable housing stock:

• Affordable Housing Fund: Renovation provides low-cost repayable and forgivable loans for the repair and renewal of existing shelters and supportive housing, ensuring these properties remain safe and viable.

• The Affordable Housing Innovation Fund also supports the modernization of existing housing units by promoting innovative renovation techniques and materials that enhance energy efficiency and cost-effectiveness.

Supporting Research, Capacity Building, and Innovation

The NHS is committed to advancing research and building capacity within the housing sector:

• Federal Community Housing Initiative provides subsidies to federally-administered community housing providers under their existing operating agreements.

• Community Housing Transformation Centre offers tools and assistance to strengthen the capacity and efficiency of community housing providers, enhancing their ability to meet community needs.

• Community-Based Tenant Initiative funds local organizations that assist tenants in accessing housing information, improving financial literacy, and managing finances effectively.

• The NHS also promotes research excellence and innovation through initiatives such as the Collaborative Housing Research Network, which conducts holistic research on housing conditions, and the NHS Research and Planning Fund, which supports NGOs engaged in housing-related research.

Promoting Partnerships and Collaboration

Achieving the ambitious goals of the NHS requires collaboration among various stakeholders:

• The Canada Mortgage and Housing Corporation (CMHC) leads many federal NHS initiatives, often working with other federal departments, agencies, and third-party organizations.

• Solutions Labs focus on scaling potential solutions to housing affordability pressures, while the Housing Supply Challenge invites communities and experts to propose innovative solutions for creating new housing supply.

• National Housing Conference serves as a platform for showcasing new ideas and innovations, fostering collaboration among experts, and promoting knowledge exchange.

By integrating these diverse initiatives, the National Housing Strategy addresses the full spectrum of housing needs—from new construction to modernization and research. The strategy represents a holistic effort to make housing more accessible, affordable, and sustainable, reflecting Canada’s commitment to creating a more inclusive and equitable housing future for all.

The 2022 Canadian Housing Survey has provided invaluable insights into the evolving landscape of housing needs and affordability across the country. As we navigate the complexities of today's housing challenges, these findings underscore the urgent need for comprehensive strategies and collaborative efforts to address disparities and support vulnerable populations. By understanding the multifaceted nature of housing issues and leveraging the data from this survey, policymakers, community organizations, and stakeholders can work together to craft solutions that ensure every Canadian has access to safe, affordable, and adequate housing. As we move forward, it is essential to remain committed to addressing these critical needs, fostering innovation, and implementing effective strategies that will pave the way for a more inclusive and equitable housing future for all.