Conversations about affordable housing and homelessness continue to attract all levels of government and is a ripe topic for community members and decision-makers alike.
Calgary’s rental market is a harsh place for low-income renters, with a vacancy rate of just 1.4%, and rents soaring by over 40% since 2020. Canada’s housing crisis is rooted in policy shifts after the 1980s that reduced Canada’s supply of affordable housing, the consequences of which began to appear in the 1990s. Homelessness in Calgary skyrocketed to over 3,600 people in 2008 and since the 2000s, all orders of governments have started to respond. Understanding this history is key to finding lasting solutions.
Post-WWII Welfare State (1965-1980)
The post-WWII era marked the largest expansion of public housing in Canada, with 5% of all new housing dedicated to social housing which accommodated half of all low-income renters in urban centres. After the war people were more open to government spending to rebuild society. This period saw significant government investment into social housing.
Shift in Social Policy (1980s)
By the 1980s Canada’s economy had become globalized and was negatively impacted by a combination of high inflation and high unemployment. In the 1970s the federal government was facing a deficit for the first time in many years which led to scepticism of welfare programs, and negative beliefs about the value of government spending on social housing. The policies that were enacted post 1980 that cut government spending, and reduced regulation also marked an era of devolution where the federal government downloaded costs, including costs for subsidized housing and social assistance to the next lower-level government, usually with fewer resources. The 1980s marked the beginning of a decline in Canada’s stock of social housing.
Financialization of Housing (2011-2016)
Housing researcher Steve Pomeroy estimates Canada lost more than 300,000 units of private-landlord housing Between 2011 and 2016, while fewer than 20,000 subsidized units were created. This has been referred to as the financialization of housing, when large investment firms acquire thousands of units as financial assets, owned by different investors. The treatment of housing as a financial commodity rather than for a social need is having a negative impact on affordability.
National Housing Strategy (2017-Present)
In 2017, the federal government launched the National Housing Strategy, the largest and most ambitious federal housing program in Canadian history. Although tracking progress remains challenging due to insufficient data, the federal government has contributed funds to build more than 146,408 units. However, after almost five years of implementation, some argue much of the housing built and subsidies provided under the strategy are not reaching those experiencing homelessness.
Housing as a Human Right (2019)
In 2019, Canada recognized housing as a human right through Bill C-97. This law requires the government to implement reasonable policies and programs to ensure the right to housing for all within the shortest possible timeframe. It also means priority must be given to vulnerable groups and those in greatest need of housing. Since the right to housing has not been included in the Canadian Charter of Rights and Freedoms it cannot be enforced, but it is a powerful tool for advocates.
The Government of Alberta (2021-Present)
Released in 2021, Alberta’s affordable housing plan, Stronger Foundations: Alberta’s 10-year strategy aims to expand and improve affordable housing by creating 13,000 subsidized units and providing rent supplements to 12,000 more households within the decade. Since the plan's launch, 1,968 new units have been created, and 4,902 households have received rent supplements. However, the strategy’s commitments fall short of meeting the demand, as research shows 115,000 people in Calgary alone are at high risk of homelessness. Additionally, many non-profit housing providers' operating agreements are outdated, and have not been adjusted for inflation.
The City of Calgary (2002-Present)
The City of Calgary’s affordable housing policies began in 2002, with significant updates in 2016 and 2022. The current strategy, Home is Here was created in 2022 and includes targets like citywide rezoning (which council approved on May 14, 2024), a minimum of 15% of the total housing units to be non-market affordable housing and utilizing city-owned land for affordable housing. Although it’s early to report on progress, the City has created a Secondary Suites Incentive Program and has donated five parcels of land and up to $75,000 in capital funding to non-profit housing providers through the Non-Market Housing Land Sale Program. However, many goals in the City of Calgary’s strategy depend on funding from other levels of government.
Solutions for the Future
To address the housing crisis, Canada must significantly increase its social housing stock, which currently sits at only 4% of our total housing stock, compared to the OECD average of 7%. In Alberta, subsidized housing represents just 2.9% of the total housing stock, and in Calgary, it's even lower at 2.6%. Preventing homelessness and keeping people in their homes is also important and can be achieved through rental subsidies, which requires the government of Alberta to raise their targets. Finally, enhancing data collection and transparency is crucial—timely publication of progress reports on housing strategies is essential to assess targets and adjust as needed.
Canada's housing crisis is complex, but with concerted effort and collaboration between each order of government, we can create a future where affordable housing is accessible to all. By learning from past decisions, we can reduce housing need and improve wellbeing.
