In November 2023, CHRA, Housing Partnership Canada, and our sector partners released our economic study, The Impact of Community Housing on Productivity. This study, authored by Deloitte, finds a causal connection between the proportion of community housing within the overall housing stock and gains in economic productivity.

In the fourth piece in our series of blog posts examining the study, we’re looking at the key takeaways from the provincial data on BC, Alberta, Saskatchewan, Manitoba, and Ontario. Read on to learn more.

 

British Columbia

British Columbia has the highest home prices (on average) in Canada while households in BC experience the highest core housing need of all the provinces.

Demand challenges

• Population and incomes have risen in BC over the last 20 years.
• Houses have increasingly become a popular investment. In 2020, investors owned 23.3% of residential properties in BC.

Supply challenges

• The housing supply in BC is unresponsive to need due to factors including long approval times, challenges faced by community housing providers in securing funding, and land use planning.
• The lack of federal involvement in community housing since the mid-90s has led to a dearth of community housing developments.

Deloitte finds that bringing the percentage of BC’s community housing units in line with the OECD average by 2030 would contribute between $9.0 to $18.7 billion to the province’s GDP.

 

Alberta

Alberta’s recent increase in demand (due to rising population) has not been matched by an increase in housing construction.

Demand challenges

• Alberta had one of the highest provincial population growth rates in 2023, driven by a high rate of international and interprovincial net migration.
• In 2020, there were 19,000 households on the waitlist for subsidized housing, with approximately one-third of those being seniors.

Supply challenges

• Zoning and land-use regulations, fees, building codes, and permit wait times limit the growth of housing supply.
• Inefficiencies and delays in planning and completing maintenance work led to fiscal pressures and inadequate housing units.

Deloitte finds that bringing the percentage of Alberta’s community housing units in line with the OECD average by 2030 would contribute between $16.5 to $30.5 billion to the province’s GDP.

 

Saskatchewan

The past three censuses found that households in Saskatchewan experienced a higher core housing need compared to the Canadian average (excluding the Territories).

Demand challenges

• The provincial government hopes to increase Saskatchewan’s population by nearly 200,000 by 2030, which will lead to an increase in the demand for housing.
• Immigrants are the main source of population growth in Saskatchewan, which increases demand for rental housing.

Supply challenges

• The current projects under construction in Saskatchewan will not be sufficient to address the expected increase in demand.
• Over the next ten years, an increasing number of community housing operating agreements will expire as the community housing stock ages.

Deloitte finds that bringing the percentage of Saskatchewan’s community housing units in line with the OECD average by 2030 would contribute between $1.5 to $3.1 billion to the province’s GDP.

 

Manitoba

There has been a notable lack of growth in the construction of new housing in Manitoba over the past few years.

Demand challenges

• There is a high demand for affordable and adequate housing in Manitoba.
• Houses have increasingly become an attractive investment. In 2020, investors owned 20.4% of residential properties in Manitoba.

Supply challenges

• There has been little growth in the number of community housing units in Manitoba in recent years.
• Manitoba’s community housing stock is older and in poorer condition than the national average. As of March 2022, over 1,000 community housing units owned by Manitoba Housing were vacant because they required repairs.

Deloitte finds that bringing the percentage of Manitoba’s community housing units in line with the OECD average by 2030 would contribute between $0.9 to $2.2 billion to the province’s GDP.

 

Ontario

Between 2005 and 2022, the average rent for an apartment increased 72% in Ontario’s metropolitan areas.

Demand challenges

• Between 2018 and 2019, Ontario’s population increased7%, compared to the average annual growth of 0.9% between 2006 and 2016.
• Houses are considered an attractive investment. In 2020, investors owned 20.2% of residential properties in Ontario.

Supply challenges

• Ontario is the only province where community housing is a municipal responsibility.
• About one third of Ontario’s community housing stock is at risk of converting to market-rate rentals after provider operating agreements expire. About half of these expired in 2020 and the remainder are due to expire in 2033.

Deloitte finds that bringing the percentage of Ontario’s community housing units in line with the OECD average by 2030 would contribute between $23.3 to $50.3 billion to the province’s GDP.

 

Stay tuned to the blog to learn about more regional data from the report.

Check out The Impact of Community Housing on Productivity.