Canada is in the pit of a growing housing affordability problem. From the younger generation facing the reality that they may not be able to buy homes like previous generations did, to the growing challenges of monopolization on housing stock, housing in Canada is a topic that relates to all ages and income brackets. As the country with the highest housing costs to household income ratio of all the G7 countries, Canada is in a unique but grim position. How can the growing financial burden of housing on Canadians be alleviated? With a rapidly growing population, there is not a one size fits all solution. The private sector has been inundated with investors buying up much of the housing stock, while the public housing sector has been stagnant and overwhelmed. LandSeed is here to provide a wholly unique solution; from tiny homes to rent-to-own programs, our nonprofit offers new and innovative solutions towards homeownership that are tailored and accessible to you. Nonprofits should be at the forefront of helping create a viable solution for the housing affordability crisis, and LandSeed is here to help.
Housing Affordability
What exactly is housing affordability? And what exactly counts as a ‘housing crisis’? Some might say it's due to the excessive housing prices featured across many major Canadian cities. Others might exclaim it's due to the rapid and growing amount of immigrants coming into our country. In general terms, housing affordability can be related to the amount of people that spend 30% or more of total household income on shelter expenses. In 2022, 22% of all households spend more than 30% of their income on housing. This rises to 33% of renters. Housing affordability can be seen as a part of a growing affordability problem in Canada. Close to one-third of households found it difficult for ends to meet in 2022, compared to only one-fifth in 2018 (Statistics Canada, 2024). Homeownership appears to be an almost unattainable goal for many Canadians, young and old, especially when you consider that the average reported home price in March 2022 was $796,068 in Canada. This rises to a whopping $1,354,000 in the Greater Toronto Area (Farhan, 2024).
One hidden cost of homeownership are interest costs. Many Canadians have been priced out of the housing market since interest rates started rapidly rising. Even after mortgage costs have decreased from their 2023 highs, monthly interest payments on a five-year fixed rate mortgage are still 40% higher than they were in January 2020, according to calculations based on average house prices from the Canadian Real Estate Association (Mukherjee, 2024).
What exactly do all these statistics point out? Housing in-affordability and inaccessibility is growing in Canada. Rising interest rates, rising housing costs, wage stagnation, and more all play a part in pricing many Canadians out of homeownership. With no sign of this crisis stopping, creative solutions must be pursued.
So what exactly can be done to fix such a dire crisis? LandSeed provides a glimmer of hope. We are here to help you build a future together. The housing crisis affects us all, and at LandSeed, we’re helping create the collective responsibility needed to address it. Taking a sustainable and community-empowered approach, our goal is to support attainable housing opportunities for all; young and old, from all income brackets.
LandSeed’s Role
LandSeed is addressing the Canadian housing crisis by partnering with communities to identify challenges and develop practical pathways to homeownership. Through our programs and initiatives, we aim to create a community that offers everyone an opportunity to thrive through sustainable housing solutions. We’re here to help people who might otherwise be locked out of the housing market take meaningful steps toward homeownership. Our current offerings and programs include:
Rent-to-own program
Resource grants for organizations
Down-payment support program
TeraHomes: a Tiny Homes x LandSeed collaboration
Community empowerment is an integral of our nonprofit. Every purchase made with us will be invested back into programs and initiatives that will benefit communities. By combining community development and housing affordability, LandSeed takes a unique approach in creating solutions to Canada’s housing crisis.
Our Call to Action and Next Steps
The solution to housing affordability in Canada is not a quick fix or primarily one industry venture. Addressing this crisis requires a collective long term commitment, and LandSeed is dedicated to building and fostering partnerships that drive sustainable and inclusive housing solutions for all. We are also always looking for new solutions to add to our offering that will positively benefit communities across Canada. The housing crisis requires all hands on deck, and LandSeed is here to bring new perspectives.
LandSeed is always looking for organizations and companies to collaborate with. Whether you’re looking for new ways to engage your community or buying your first home, we can help you achieve your goals. Join our online community to learn how you can start your journey to homeownership and get involved, whether you’re an individual, business, or non-profit!
References
Farhan, B. Y. (2024). Canada’s leadership and Housing Affordability: Evidence from the Canadian Real Estate Market. Retrieved from https://www.sciencedirect.com/science/article/pii/S2226585623000882
Statistics Canada (2024). Housing Affordability in Canada, 2022. Retrieved from https://www150.statcan.gc.ca/n1/daily-quotidien/240910/dq240910b-eng.htm
Murkherjee, P. (2024, September 30). Canada's housing affordability crisis may persist for years despite rate cuts. Retrieved from https://www.reuters.com/world/americas/canadas-housing-affordability-crisis-may-persist-years-despite-rate-cuts-2024-09-30/
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