Housing affordability crisis spreading to cities such as Montreal and Halifax, CMHC says

"Affordability started recovering slightly since 2023, when it reached historical lows. For home ownership, we observed improved affordability, while for renters we saw stabilization over the last two years. Even with these improvements, we cannot overlook how much housing affordability has eroded in recent years, especially in Ottawa, Montreal and Halifax, clearly demonstrating that Canada's housing affordability crisis is no longer limited to Toronto and Vancouver."

"One of the key factors, CMHC said, was the impact of labour mobility brought on by remote work during the COVID-19 pandemic, which has persisted even as the job market has changed. The national housing agency says affordability issues are no longer limited to Canada's largest cities and have spread to other areas such as Ottawa, Montreal and Halifax."

"CMHC says its housing affordability composite index provides a more comprehensive picture of affordability and looks at factors like whether incomes are keeping up with the cost of housing, if supply can meet demand, and if households have income leftover after paying for essentials."

Canada's housing affordability crisis has expanded geographically beyond major cities like Toronto and Vancouver to include Ottawa, Montreal, and Halifax. While affordability conditions have improved slightly since 2023, they remain at historic highs. Remote work during the COVID-19 pandemic enabled labour mobility that contributed to this spread. Home ownership affordability hit its lowest point since the 1990s in the second quarter of 2022, with modest recovery since then. Rental affordability has stabilized over the past two years. The CMHC's affordability index examines whether incomes keep pace with housing costs, supply meets demand, and households have income remaining after essential expenses. Affordability erosion began in the early 2000s, with three distinct periods of worsening conditions occurring between 2001-07, 2015-20, and 2020-23.

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