Opinion: Housing affordability also depends on deposits and financing, not only building more homes

The Story

In his opinion, Josh Hunt says that while building more homes matters, affordability also depends on how people can access ownership—particularly the capital required to enter the housing market.

He argues that Canada’s housing problem is not simply a shortage of buildings, saying the way homes are built, financed and accessed has become “separate conversations” that need to be addressed together.

Hunt cites Statistics Canada figures showing that in 2023, the median renting family under 35 had $12,000 in liquid assets and would still be about $80,000 short of a 20 per cent down payment if that amount were used toward a purchase.

He adds that for renting families aged 35 to 44, the median shortfall was $97,000.

Hunt also points to Statistics Canada data from the first quarter of 2024, stating that renters spent 33.3 per cent of their income on housing compared with 22.8 per cent for homeowners.

He further notes that Statistics Canada found renters had average negative net savings of $707, while homeowners had positive net savings of $2,835.

The opinion piece argues that affordability barriers are not limited to whether households can make monthly payments, but also include the upfront deposit and the financing structure.

Hunt also says Statistics Canada has pointed to the growing role of family wealth and inheritance in helping younger Canadians enter the housing market.

On the supply side, Hunt argues that Canada cannot build at the scale needed using a system he describes as slow, fragmented and expensive, and says modern methods of construction can improve predictability, reduce waste and shorten timelines.

He concludes that Canada needs to create a housing delivery system and financing approaches that make homes not just available, but attainable, and credits local governments with a role in streamlining approvals as part of that effort.