In the intricate web of societal challenges, housing unaffordability looms as a profound disruptor, silently eroding the well-being of individuals and communities alike. In TRREB’s 2024 Market Outlook and Year in Review report, the Canadian Centre for Economic Analysis (CANCEA) shares their ground-breaking study Locked Out: The Social Value Cost of the GTA’s Housing Crisis. It provides an in-depth look at the toll on individuals and families forced to budget more than half of their income towards housing.
“Households spending more than 50 per cent of their income on housing in the GTA experience a lower well-being score, when considered in total, it is comparable to the burden of some of the most significant health challenges faced by a society,” said Paul Smetanin, President and CEO of CANCEA.
The Impact of Housing Unaffordability
The numbers tell a compelling story – a staggering $37 billion in negative social value cost for Greater Toronto Area (GTA) residents in 2023 alone. This surpasses the social value costs attributed to major chronic diseases such as cancer, diabetes, and heart disease. In the GTA, young adults contend with exorbitant housing costs, hindering their path to homeownership. Newcomers and renters face additional hurdles grappling with integration challenges and financial strain due to escalating rental prices. CANCEA’s findings highlight that housing unaffordability is not just an economic problem but a pressing societal issue. It’s a revelation that underscores the urgency of the housing unaffordability crisis, shedding light on its profound effect on individual well-being.
“The social value cost attributed to housing unaffordability in the GTA is approximately 1.75 times greater than that of cancer in the GTA,” added Smetanin.
Forging a Path Forward
It’s clear that policymakers at all levels of government need to take action and address the social impact of housing unaffordability. Together, they must move forward with determination and empathy, working collaboratively towards a future where every individual has access to safe, affordable housing.
For a more in-depth look into CANCEA’s research and a comprehensive understanding of the current real estate landscape, explore TRREB’s 2024 Market Outlook and Year in Review report.