Percentage of Canadians living in unaffordable housing returns to pre-pandemic levels

Housing affordability

Housing affordability did briefly improve in 2021, thanks to pandemic-related government supports.

From 2018 to 2022, shelter costs increased nationally by 20.6%. Against this backdrop, a larger share of Canadians were dissatisfied with the affordability of their housing in 2022 than in 2018.

In 2022, 14.5% of households were dissatisfied with the affordability of their housing, marking a 3.4 percentage-point increase from 2018 (11.1%). Renters (20.8%) were more likely to be dissatisfied with the affordability of their housing than owners (11.2%) in 2022, but the rates of both groups grew by more than three percentage points since 2018.

Meanwhile, a smaller proportion of renter households living in social and affordable housing (10%) were dissatisfied with the affordability of their housing in 2022.

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New renters

New renters faced their own disadvantages. In 2022, new renters who had moved into their dwelling during the previous two years paid an average monthly rent of $1,590, which is 27% more than that of existing tenant households that did not move during that time.

These new renters (34.3%) were more likely to be dissatisfied with the affordability of their housing compared with all renters (20.8%) in 2022. By comparison, the share of new renters who were dissatisfied with their housing affordability in 2022 was 11.3 percentage points higher compared with new renters in 2018 (23%), who moved during the period from 2016 to 2018.

Naturally, reasons for moving varied. Close to one-third (30.8%) of new renters in 2022 moved for school, for a job or to start their own household, while some moved to improve their housing and neighbourhood conditions (24.1%), and others moved to reduce shelter costs (9.1%).

First-time home buyers

About 1.3 million households, or 8.6% of all households, bought their first home from 2018 to 2022. This period was marked by changing home prices and fluctuating interest rates, both of which put pressure on housing markets and homebuyers. However, the share of households that bought their first home from 2014 to 2018 (8.7%) was virtually the same as that recorded from 2018 to 2022.

While many households in 2022 were able to own their home for the first time, the perceived affordability of homeownership changed between cohorts. A larger share of first-time homebuyer households (21.3%) were dissatisfied with housing affordability in 2022, 7.9 percentage points higher than that of their counterparts in 2018 (13.4%).

The median outstanding mortgage amount increased by 12.3% from $249,350 to $280,000 over this period.

Since around early 2022, most households have been renegotiating their mortgages at higher rates. An estimated 2.2 million households will be renewing their mortgage in 2024 or 2025, accounting for 45% of all outstanding mortgages.

Survey methodology

Statistics Canada released results from the third cycle of the Canadian Housing Survey for 2022. Collection for the 2022 CHS took place from October 31, 2022, to March 31, 2023, in the 10 provinces. The information reflects the housing situation in the provinces only. The next cycle of the CHS, for 2024, will begin on October 28.