Consequences of the Housing Crisis
- Girl Up McMaster
- Mar 8, 2023
- 2 min read
Over the last decade, housing prices have skyrocketed (Boynton, 2022). As a result, new homebuyers must work full-time for around 22 years to afford a 20% down payment for their mortgage (Boynton, 2022). Unaffordable housing has multiple ramifications, such as homelessness, immigration struggles, and mental and physical health issues.
To begin, many people in Ontario experience homelessness due to limited vacancies and poor housing options. (AMO, 2022). In addition, with rent and real estate costs rising faster than full- time income, homelessness is becoming a costly problem. According to the State of Homelessness, homelessness costs the economy $7.05 billion (ACTO, n.d).
Moreover, unaffordable housing affects immigration. Immigrants play an important role in the economy. To illustrate, Canada relies on immigrants for labor shortages due to its aging population (Dodig, 2022). Without immigration, the working population would reduce by 150,000 individuals annually (Dodig, 2022). However, due to Canada’s high cost of living, many immigrants desire to return home. To highlight this, according to a survey of 500 Canadian immigrants, nearly half plan to leave Canada or are considering leaving (Dodig, 2022). To remain immigrant-friendly, Canada must offer affordable housing and decent wages (Dodig, 2022).
Furthermore, while the housing crisis is impacting people's physical health, it is also impacting their mental health. Poor housing and mental health are cyclically linked (Mind, n.d.). To demonstrate, poor mental health makes it hard to cope with housing problems and in turn, housing problems can worsen mental health (Mind, n.d.). Common mental health issues include concerns about living costs, and living in a crowded or dangerous environment (Mind, n.d.). Some people have irregular sleep patterns due to noisy environments and stress, and a lack of sleep can make dealing with housing problems even more difficult. Additionally, due to housing costs, some people are forced to live in vulnerable areas where drugs and alcohol are prevalent. As a result, they are at a higher risk of developing addiction problems. Housing issues also affect other areas of life such as partnerships. Stress about housing costs and trying to save enough money can lead to fights and arguments. Overall, it is important that people with housing problems receive adequate mental health support.
In summary, Ontario's high home prices have several consequences. These outcomes include homelessness, less immigration, and poorer mental health. Additionally, the discrepancy between home prices and full-time income means that some people may never own a home in their lifetime. As real estate prices skyrocket, some individuals have to keep living paycheck-to-paycheck. The Canadian government must take policies and actions to combat this housing crisis.
Written by Nivetha Nimalanesan
Edited by Jaime White
Link to ‘One-time top-up to the Canada Housing Benefit’ Application:
*Application Deadline: March 31st, 2023
References
ACTO. (n.d.). Fact sheet | homelessness in Canada and Ontario. Fact Sheet | Homelessness in Canada and Ontario. Retrieved November 10, 2022, from https://www.acto.ca/production/wp-content/uploads/2017/07/Factsheet-4- Homelessness-in-Canada-and-Ontario2.pdf
Boynton, S. (2022, May 19). Housing affordability in Ontario has eroded faster than any province amid covid-19: Report. Global News. Retrieved November 9, 2022, from https://globalnews.ca/news/8843092/ontario-election-housing-affordability-report/
Dodig, V. (2022, October 24). Canada must fix affordability, housing issues so immigrants can thrive ... Retrieved November 10, 2022, from https://financialpost.com/news/economy/victor-dodig-canada-immigration-housing- affordability
How can housing affect mental health? Mind. (n.d.). Retrieved November 10, 2022, from https://www.mind.org.uk/information-support/guides-to-support-and- services/housing/housing-and-mental-health/
Ontario's Housing and Homelessness Crisis. AMO. (2022, August 2). Retrieved November 9, 2022, from https://www.amo.on.ca/advocacy/health-human-services/ontarios- housing-and-homelessness-crisis
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