Canada's Housing Crisis: A Policy Problem

Canada's housing crisis has been years in the making, but it wasn't inevitable. According to the Frontier Centre for Public Policy, government decisions have contributed significantly to the problem.

The Demographia International Housing Affordability Index, authored by Wendell Cox, compares 96 markets across eight nations and finds that Vancouver and Toronto are among the least affordable in the world. In contrast, Edmonton remains more affordable despite strong population growth and a healthy economy.

The key difference between these cities lies in public policy. Governments at every level have restricted the supply of developable land while adding planning requirements, environmental reviews, development charges, permitting delays, and complex regulations. These measures may have been introduced for understandable reasons, but collectively they have made it slower and more expensive to build new homes.

Canada is not running out of land; rather, it's running short of land made available for housing. Edmonton demonstrates that better policy can produce better outcomes by streamlining approval processes, increasing housing supply, and removing unnecessary barriers to construction.