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Housing affordability in the GTHA has been a dire issue for years now, one that we have all become very familiar with and which is impacting many residents across the region who are struggling to make ends meet among ever-increasing housing costs. It has shaped our elections at all levels of government, and has sparked many debates across all media platforms. At this point we have heard all the slogans and promises and red-tape-cutting as developers and governments struggle to address a complex, multi-faceted issue that was decades in the making, but there is one quieter voice that seems to be drowned out among the noise — that of the everyday people who are affected by all of this.
CivicAction is leading an initiative focusing on the human story of housing to reframe the narrative of the housing crisis by putting people back in the centre of the issue. Through CivicAction's TD Housing Affordability Leaders-in-Residence Program, a series of four reports is being released focusing on the real economic and human impacts to our cities that this housing crisis creates, and a call to action on how to address it. The first report, titled The Why: The Human Story of Workforce Housing, describes the issue in detail, how it impacts our critical workers, and how that translates into economic loss.
The report lays out some stark facts about the impacts of the housing crisis:
- 66% of survey respondents are spending more than 30% of their income on housing, with 29% spending more than 50%;
- 67.7% of middle-income worker survey respondents actively considered changing jobs and/or moving in the past 3 years;
- The GTHA contributes 50% of Ontario's GDP and 20% of Canada's GDP. Housing costs are directly and indirectly related to a 2.1% loss of GDP, amounting to roughly $7.5 billion annually;
- More than 550,000 workers have left the GTHA between 2014 and 2024.
The report hones in specifically on middle-income workers — nurses, teachers, trades, first responders, and other such professionals — who are essential to the functioning of our cities. This demographic is often overlooked when it comes to housing provision, but which is now getting squeezed out of the region due to unaffordable housing costs. Workers are either faced with moving further out of the urban core, facing increasingly cumbersome commute times, or leaving the region altogether. The report argues that without these workers, the city cannot function, and the economy suffers as a result. UrbanToronto spoke with Leslie Woo, CEO of CivicAction, about the report.
Woo argues for a more human-centric approach to housing policy. She states that when we do not keep in mind who the housing is for, we lose sight of what the actual needs are. The report outlines how our market-driven approach to the provision of housing dehumanizes housing supply, which leads to scenarios where despite an affordability crisis, thousands of tiny condo units specifically geared towards investors currently sit empty or unwanted in the GTHA, as they do not fulfill the actual needs of the general population. She also uses the example of how development charges are calculated on a per unit or per square foot basis, which incentivizes developers to build more units at a smaller size. Larger units for families get lost in the mix, even though families make up a very large and important demographic that are deeply impacted by rising housing costs.
Woo highlighted four main takeaways from the report. The first is gaining a comprehensive understanding of the issue and the toll it is taking. When middle-income workers are struggling financially, there is a domino effect on the economy. Longer commute times lead to a deterioration in mental health: people arrive at the workplace tired and grumpy and therefore are less productive. They may have less personal time for family or hobbies which leads to more stress, or they may be forced to relocate out of the region entirely away from friends and family, all of which translates into the mental state of how people show up to work. As aspects like child care, seniors care, and community integration begin to suffer, these all compound to drag down the economy and the general mental health of the population.
The second key takeaway from the report is that these issues are not on the distant horizon, they are happening here and now, and therefore quick action must be taken to address them. The reports are a stark warning that though we are not yet too late to act, if we do not do something soon it will be difficult to reverse.
There are further economic effects beyond the mental health of employees. Commute times and stress levels may lead to higher rates of turnover and absenteeism in the workplace. Unaffordable housing that forces workers to leave the region translates into difficulties retaining talent. These are all contributing to a drain on the economy directly related to the housing crisis.
The final takeaway is that addressing the housing crisis needs to be a collective effort involving all levels of government and the private sector. Woo emphasizes that there is no 'silver bullet' solution to the housing crisis given the complexity of the issue, and that a multi-dimensional approach is required to provide appropriate solutions that will actually address the current needs.
The report delves into detail about the causes of the housing crisis, and lays out a much more nuanced analysis than the simple supply-and-demand narrative that the debate is often reduced to. It argues that policy directions and incentives, restrictive zoning, a lack of government funding, and external influences beyond our control, among other factors, have collectively led us into a system that prioritizes standardized, efficient, and cheap housing over housing that addresses the actual needs of the population.
Woo argues that there should be a healthy tension between profitability and delivering for the public good, and that there are many ways to achieve both of these through alterations to our current system. She believes that more innovative housing in a variety of typologies is not only possible but is required to address the wide range of housing needs in the GTHA. Despite all the current problems, Woo stresses there is reason to be hopeful even if the issues are significant, and that we can act decisively so long as we keep the individuals that we want to support at the centre of the solutions.
You can read the full report by following the link here. CivicAction will be releasing three more reports in the coming months that dig into the details of the economics of the housing crisis; propose solutions on how to address the crisis; and compile a Call to Action aimed at bringing all relevant parties together to address the human needs at the centre of the crisis. Armed with this new research and a drive for collaboration, CivicAction aims to address the housing needs of the GTHA head on in the hopes of maintaining and broadening the bright and prosperous future of our region.
UrbanToronto will continue to follow CivicAction's reports as they are released, but in the meantime, you can leave a comment in the space provided on this page.
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UrbanToronto has a research service, UTPro, that provides comprehensive data on development projects in the Greater Golden Horseshoe — from proposal through to completion. We also offer Instant Reports, downloadable snapshots based on location, and a daily subscription newsletter, New Development Insider, that tracks projects from initial application.
