Why it’s time to move beyond affordability myths and prioritize accessible housing for everyone in Canada.

Introduction

Housing in Canada, particularly in cities like Toronto, has reached a point where affordability is a myth, accessibility is a challenge, and government interventions often feel like band-aid solutions for much deeper wounds. From rate cuts to mortgage limit increases, the strategies we see today are less about solving the real crisis and more about political optics. Let’s dive into why housing affordability will never be “fixed,” why accessibility should be our focus, and how public land policies are the key to real progress.

Affordability vs. Accessibility: Stop Chasing Unicorns

For decades, the narrative around housing has revolved around affordability—making it easier for more Canadians to buy homes. Here’s the reality: affordability is a fantasy, and it’s time to stop chasing it.

Affordability Myths:

Many still romanticize the days when a single income could buy a detached home in Toronto. But let’s be real: those days are gone, and it’s not the government’s fault. Toronto is desirable—demand will always drive prices higher, and no policy will bring us back to “the good old days.”

Why Accessibility Matters: (and we’re not talking about wheelchairs here)

Instead of focusing on affordability for all, we need to shift toward housing accessibility:

• Ensuring everyone has a place to live, regardless of income.
• Prioritizing housing for those in need over those who simply want to own a piece of downtown.
• Embracing diverse solutions like purpose-built rentals, co-ownership models, and community housing.

Rate Cuts and Mortgage Rule Changes: Playing to the Wrong Crowd

Recent moves by the Bank of Canada and federal policymakers, such as increasing the insured mortgage cap to $1.5 million, are well-intentioned but misplaced when viewed through the lens of long-term housing stability.

The Impact of Rate Cuts:

A 50-bps overnight rate drop may grab headlines, but it risks fueling more speculative buying and over-leveraging. Sure, lower rates ease borrowing costs, but they also stoke demand in a supply-starved market. This often results in higher prices, not more affordable homes.

The Quiet Catalyst of Mortgage Rule Changes:

Raising the insured mortgage limit to $1.5 million is far more impactful than rate cuts, especially in markets like Toronto. Here’s how:

• Old Rules: Homes over $1 million required a 20% down payment.
• New Rules: Homes up to $1.5 million can now qualify for insured mortgages with a lower down payment (as little as 5% for the first $500,000 and 10% for the remainder).

Example:

$1.4 million home:

• Old Rules: $280,000 down payment.
• New Rules: $115,000 down payment.

This change will undoubtedly inject activity into the $1–$1.5 million price range, creating short-term momentum in both housing sales and the broader economy. But it comes at the cost of long-term financial risk for buyers and more upward pressure on prices.

Stop Selling Public Lands to Private Developers

One of the most critical yet overlooked aspects of housing policy is how governments use public lands. Selling excess lands to private developers has proven to be a failure for creating accessible housing.

Why Selling Public Land Fails:

• Profit Over People: Developers, accountable to shareholders, prioritize profit. Even with mandates for “affordable” units, the majority of projects cater to market-rate buyers.
• Minimal Impact: A handful of “affordable” units in high-priced developments do little to address the housing crisis.
• Permanent Loss: Public land is a finite resource. Once sold, it’s gone forever, along with the opportunity to create meaningful housing solutions.

The Better Alternative:

Governments should develop these lands themselves, focusing on purpose-built housing that prioritizes those in need without the incessant public consultations that bring out your Aunt Sally and her husband Bob. A retired school teacher and an accountant who owns a $3.5mm house near Casa Loma and don’t want their their precious community sullied by peasants.

• Invest in mixed-income communities to integrate diverse socio-economic groups without isolating lower-income residents.
• Use innovative models like modular construction and sustainable design to maximize efficiency and impact.

Housing Policy Is a Systemic Problem, Not a Partisan One

Let’s not kid ourselves—this isn’t a Liberal problem, a Conservative problem, or even an NDP problem. It’s a systemic issue rooted in the realities of modern governance:

• Political Optics Over Substance: Housing policies are designed for short-term wins, especially leading into elections.
• Lobbyists’ Influence: Developers, banks, and real estate groups hold significant sway, ensuring policies that maintain the status quo.
• No Party Will Fix Affordability: The notion that any party can make real estate “affordable” is a lie. The market dynamics of desirable cities like Toronto make that impossible.

Instead, we need to focus on policies that aren’t about appeasing middle-class voters or private industries but about housing everyone.

It’s Time to Stop Whining About the Past

Housing has changed, and it’s not going back. Instead of lamenting the “good old days,” let’s accept reality:

• Toronto is awesome, and demand will always be high.
• Governments can’t control market dynamics but can influence housing accessibility.
• Complaining about the inability to buy a detached home on a single income is unproductive. It’s not 1980 anymore, and policies need to reflect that.

A Real Path Forward

If we stop chasing affordability myths and focus on accessibility, we can start to make real progress:

1. Incentivize Density: Reform zoning laws to allow more multi-unit housing in low-density areas. We’re doing this, but it took so long as we’re too deep. We’re now in a position where we cannot outbuild the need for housing.
2. Build Purpose-Built Rentals: Invest in large-scale rental projects to meet demand for those who don’t need or want to own.
3. Develop Public Land for Public Good: Governments must lead the charge in creating housing that serves people, not shareholders.
4. Stop Propping Up Demand: Policies like rate cuts and higher mortgage limits are short-term fixes that fuel long-term instability.

Final Thoughts: Housing as a Human Right

Canada’s housing crisis isn’t going to be solved by rate cuts, mortgage rule tweaks, or selling off public lands. Real progress requires a fundamental shift in how we think about housing: not as a commodity, but as a basic human right.

Let’s stop pandering to those with means and focus our energy on those in need. Only then can we start to build a housing system that works for everyone.

Namaste.

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