Hope on The Horizon?
In a recent Leger survey, 34% of Canadians said the economy is “good” or “very good”, a small but meaningful uptick from previous months. Meanwhile, 59% continue to view it as poor or very poor.
That’s the hopeful headline. The harsher bottom line: housing affordability remains the top concern for a plurality of Canadians. In the same survey, 43% ranked housing costs ahead of healthcare, tariffs, inflation, crime, or climate change.
For immigrants or prospective newcomers, this tension matters deeply. Rising economic confidence doesn’t erase the reality that owning or even renting a stable home is increasingly out of reach. You might feel Canada is bouncing back — and you’d be partly right — but the housing challenge threatens to limit opportunities, mobility, and long-term settlement.
A Fragile Optimism
The shift in confidence isn’t sweeping, but it’s genuine. Canadians report easing pressures from inflation and interest rates that show signs of tempering.
Still, future expectations remain muted: 45% of respondents foresee a decline in Canada’s economy over the coming months.
In plain terms, people are feeling a little better about today, but not convinced about tomorrow. They’re hopeful, not confident.
By The Numbers
Across nearly every group, housing affordability is the top concern. In the latest surveys:
43% of Canadians list housing affordability among their top three issues.
Health care (39%) and U.S. tariffs (33%) follow behind.
In earlier data, 45% of people said housing costs or rent increases were a “very big concern.”
Over one‑third report difficulty meeting basic financial needs (housing, food, transport) in the past year.
These data show housing isn’t just an economic issue; but also a stress point for daily life, decisions, and migration choices.erations to regions outside of the U.S.
Housing: The Persistent Drag
What’s holding that confidence down? Housing, without a doubt.
Affordability slowly easing, but still high
On one hand, some metrics suggest things are improving. According to the Housing Affordability Monitor, affordability has improved for six consecutive quarters as of Q2 2025. The mortgage payment burden (as a share of household income) fell about 2 percentage points quarter over quarter.
But improvements are uneven. Markets like Toronto and Vancouver posted sharper gains, while Edmonton and Québec City lagged behind.
That said, this easing comes off a very steep climb. For many households, especially newcomers, these marginal gains barely move the needle.
Supply constraints and policy gaps
Canada’s housing shortage is baked into multiple reports. The OECD flags rising household debt, stretched housing affordability, and development bottlenecks as core vulnerabilities.
In mid-September 2025, the federal government responded with a bold move: unveiling a new agency, “Build Canada Homes,” capitalized at roughly CAD $9.4 billion, to drive affordable and mid-income housing development.
Advocacy groups welcomed the move but cautioned that speed, climate resilience, and affordability must remain central. The Pembina Institute, for one, urged the government to favour modular, low-carbon, efficient housing construction.
These are positive steps, but they’re far from solving entrenched issues like land-use zoning, municipal permitting delays, and regional mismatch in supply-demand dynamics.
Core housing need still high
The Canadian Housing Survey shows that about 11–12% of Canadian households live in core housing need, meaning their housing is unaffordable, inadequate, or unsuitable, and they can’t access better options in their community.
Renter households bear the brunt: in 2022, for instance, over 22% of renters were in core need compared to just 6% of homeowners.
Crucially, racialized and Indigenous households are overrepresented in core housing need categories; a factor newcomers must consider.
That disparity doesn’t just reflect income, it reflects systemic challenges in access, neighborhoods, and housing quality.
What’s Driving the Housing Squeeze
Here are some of the root reasons behind the affordability issue:
Rapid demand growth: immigration, population growth, and strong household formation.
Insufficient housing supply: new home builds not keeping pace, especially for affordable or mid‑level stock.
Rising construction costs & interest rates: materials, labor, regulation, and financing all pushing costs up.
Regional imbalance: units in more affordable regions are limited; the expensive cities (Toronto, Vancouver) continue to dominate.
The OECD also notes that demand is strong while real incomes are sluggish, making housing increasingly out of reach for many households.
What This Means for Immigrants & Newcomers
The dynamics of confidence and housing affect people arriving in Canada, especially newcomers, in important ways.
Risk & Stress Before Getting Settled
Many newcomers are renting before they buy. High rents make it harder to save, raise down payments, or afford moving.
Housing affordability concerns may restrict where newcomers settle. To find cheaper rents or homes, some may have to live far from job opportunities or transit.
When housing is unstable or expensive, newcomers often trade off other essentials; less spending on education, health, or remittances.
Impact on Mobility & Job Decisions
High housing costs limit mobility. Even if there’s a job opportunity in another city or province, moving can be prohibitively expensive.
For those eligible for Express Entry or provincial pathways, location choice matters. Settling in more affordable regions may improve financial stability but reduce access to certain jobs.
Longer Term Financial Strain
Newcomers often carry debt (student loans, moving costs) and are trying to build credit. A large fraction of income going to housing makes debt repayment harder.
Delays in homeownership extend dependence on rentals, often with rent increases that outpace income growth.
In short: the relative optimism in the economy doesn’t liberate you from the housing crisis; it forces you to navigate it under more pressure.
What Needs to Change (and What’s Being Done)
Canada is recognizing the problem; here’s what’s in motion and what gaps remain.
Policy Moves & Government Plans
Ottawa plans to slow population growth to ease pressure on housing.
A new federal agency, Build Canada Homes, with C$13 billion backing, aims to build affordable housing for low-income and middle-class households.
The federal government’s housing documents expect home prices to grow in 2025 but forecast that they’ll cool over 2026–2027.
The National Housing Strategy and linked policies target affordable housing funding, though many argue it's not enough.
What’s Missing or Needs Scaling
Building permits, zoning, and red tape delays slow down new construction.
More funding and focus are needed for “below-market” or subsidized housing, especially in major metro areas.
Regional coordination is weak: some provinces lag far behind in rolling out policies.
For newcomers, programs for settlement support and housing subsidies are often thin or competitive.
What Newcomers & African / Nigerian Immigrants Should Do
In this tightening environment, here’s how immigrants can make more strategic decisions:
Explore more affordable provinces / cities: Places like Calgary, Ottawa, Halifax may offer more manageable housing costs and growing job markets.
Be flexible on location vs. job: Sometimes, a slightly lower wage but lower cost location nets you better net savings.
Rent smart & early: Start saving the moment you arrive. Look for shared housing, smaller units, co‑living options. Use community networks to find trusted, lower-cost housing options.
Budget aggressively for down payments / savings: Factor in the high cost and long timeline. In many cases, you'll need extra cushion for interest rate hikes, maintenance, etc.
Watch and time the market: Interest rates, policy announcements, new housing starts; all these affect affordability; entering at the right moment matters.
Leverage government & community housing supports: Some cities and provinces offer first-time homebuyer programs, rent subsidies, or support for newcomers. Check local programs.
Advocate, network & stay informed: Be aware of plans like Build Canada Homes; public comment or advocacy at provincial or municipal levels can shift priorities. Network with local immigrant groups; they often share housing insights.
Final Word
Canada’s economic confidence may be slowly turning up—but for many, the weight of housing costs is still the defining issue. For newcomers especially, where and how you land contributes heavily to your financial stability, career options, and long-term prospects.
If Canada wants to live up to its reputation as a destination for opportunity, it must make housing affordable, not just in remote regions, but where people want to live, work, and build communities.
Until next time,
