The housing crisis: A national emergency and a local call to action

Housing in Canada has become a flashpoint for frustration. For years, housing problems seemed like big-city issues—homelessness and affordability challenges were often associated with Toronto, Calgary, Vancouver, or Montreal. But that’s no longer the case.

Since 2017, I’ve been advocating for change in my community, approaching this crisis with a unique perspective: 15 years in residential construction, a run for provincial office in 2020, and my current role as a Councillor-at-Large in Saint John. Recently, I’ve taken my nonprofit, the Saint John Tool Library, into the fight—working to create affordable housing while training a new generation of builders.

Can we solve this crisis? Absolutely. Will we make the bold changes needed? That’s less certain.

Housing and profit: The real estate industry’s role

Many are surprised to learn that the real estate and leasing industry is the largest profit-maker in Canada, with a GDP of $292 billion in 2023. To put this in perspective, this sector generates more revenue than the financial, insurance, and energy sectors combined. Meanwhile, the construction industry—the one tasked with building and maintaining homes—is nearly half its size.

Adding to the disparity is profit. The real estate and leasing sector enjoys a margin, compared to an average of 15.1 per cent for other leading industries[1,2]. In other words, companies like realtor firms, property management groups, private equity investors, and real estate trusts are profiting immensely from the housing crisis.

The social cost of housing instability

At the 2023 Federation of Canadian Municipalities Conference, I heard pollster David Coletto describe housing crises as profoundly destabilizing to western democracies. He warned that housing insecurity fuels dissatisfaction with the status quo, citing examples like Brexit, the U.S. Capitol insurrection on January 6, and political upheaval in Canada, including the trucker convoy.

Housing insecurity erodes our communal sense of stability. Rising homelessness, skyrocketing rents, and increasing numbers of adults living with their parents reflect a nation under strain. Even Bonavista, Newfoundland, has declared a housing crisis, going so far as to freeze new Airbnb units in a desperate attempt to address shortages.

Who benefits from the crisis?

While communities struggle, some reap enormous profits. The profit margin of the real estate and leasing sector has risen from 20 per cent in 2004 to over 36 per cent today. Economist Jim Stanford, Director of the Centre for Future Work, explains that housing has “become a speculative financialized asset rather than a roof over your head.”

When mainstream economists start labeling landlords and speculative investors as contributors to the problem, it’s clear the issue demands our attention. I’ve long argued that private interests will dismantle our housing system if left unchecked. Yes, it may be uncomfortable to hear 35-year-old renter challenge policies that prop up a 67-year-old homeowner’s investments. But discomfort doesn’t make it wrong.

Housing is an essential, not an optional luxury commodity. It’s time we act like it.