Fact Check: "Housing affordability is a significant issue in Canada."
What We Know
Housing affordability has been a recurring theme in discussions about the Canadian economy. According to a report from the National Bank, housing affordability remains a significant challenge for Canadians, although there has been some improvement noted in the first quarter of 2025. This report indicates that affordability improved for the fifth consecutive quarter, marking the longest such streak since 2008-2009.
Further corroborating this, the Fraser Institute describes housing affordability as one of Canada's most urgent economic and social challenges. The report highlights that key affordability metrics have deteriorated nationwide since the onset of the COVID-19 pandemic, with rising house prices and rents contributing to increased shelter costs that have outpaced inflation.
Additionally, the OECD Economic Surveys emphasize that housing affordability has become a pressing issue in Canada, driven by rising housing prices that have not kept pace with demand. This suggests a systemic problem in the housing market that affects many Canadians.
Analysis
The claim that housing affordability is a significant issue in Canada is supported by multiple credible sources. The National Bank's report provides a quantitative analysis of housing affordability trends, indicating both the challenges and recent improvements in the market (source-2). The Fraser Institute's report offers a broader context, linking the issue to economic and social challenges exacerbated by the pandemic (source-5). The OECD's assessment further reinforces this by highlighting the mismatch between supply and demand in the housing market (source-7).
However, while these sources are reputable, it is essential to note that they may have inherent biases. The Fraser Institute, for instance, is known for its free-market perspectives, which may influence its interpretation of housing data. The National Bank, being a financial institution, may also present data in a way that aligns with its interests. Therefore, while the data presented is credible, the framing and interpretation should be considered critically.
Moreover, the improvement in affordability noted in the National Bank's report does not negate the ongoing challenges faced by many Canadians, particularly in urban areas where housing prices remain high. This duality—improvement in some areas while significant challenges persist—makes the overall assessment of housing affordability complex.
Conclusion
Verdict: Unverified
While there is substantial evidence supporting the claim that housing affordability is a significant issue in Canada, the nuances of the situation—including recent improvements and the varying interpretations of data—make it difficult to categorically affirm the claim without acknowledging these complexities. The ongoing challenges, particularly in major urban centers, suggest that while some progress has been made, significant issues remain.
