Housing Affordability in Canada 16 / Canadian Government Executive // January/February 2022 BY FELICIA PARR HOUSING Intergovernmental Relat ions and Access to affordable housing is essential both for citizen health and as a means to economic prosperity. Housing policy in Canada over the last few decades has hindered some levels of government from solving affordability challenges, such as increasing the supply of affordable rental housing, subsidizing the upgrading of old housing stock, and the ability to make housing available to vulnerable populations. Until recently, the federal government played a minor role in the supply of affordable housing, putting pressure on both provincial and municipal governments to solve the affordability issue themselves. To ensure a more efficient approach to affordability moving forward, the federal government needs to continue to provide financial support as well as maintain a leadership role in providing clear policy guidance to provincial and territorial governments. It will also have to promote flexibility with respect to regional needs in housing policy. Municipalities also have an important role to play and are in a unique position to help address the housing affordability challenge with the tools at their disposal. Finally - despite the importance of each individual role of government - cooperation, collaboration, and the sharing of resources is required among all three levels to put the affordability crisis behind us. The Affordability Issue in Canada Housing affordability has become an increasing concern over the last few years. Market-driven forces such as historically low interest rates, high demand, and limited supply have caused housing prices to accelerate, impacting affordability for the average Canadian and increasing inequality. While the price for a home has increased by 69.1% nationally, median household income has only increased by 27.6% between 2007 and 2017 and the gap continues to widen. The COVID-19 pandemic has only exacerbated the issue, with the Bank of Canada reducing interest rates to historic lows, indi-
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