According to a report released by the online real estate platform rentals.ca on Thursday, April 3, many Canadian renters are abandoning the dream of homeownership due to rising housing prices that far outpace wage growth. The “2025 Federal General Election Survey,” conducted with over 500 renters across Canada, found that more than 40% of respondents cited the widening gap between stagnating wages and escalating housing prices as the primary cause of the ongoing housing crisis.
The report highlighted that 47% of all respondents identified the issue of wage stagnation coupled with rising housing costs as a key concern in the upcoming federal election. Renters, along with other Canadians, are grappling with economic inequality and the growing burden of housing costs. This issue has become central to voter concerns, with many undecided voters also ranking inflation and wage stagnation as significant worries. For political leaders, addressing the overall cost of living, including housing affordability, is seen as crucial to gaining voter support.
A recent analysis by actuarial consulting firm Normandin Beaudry predicts that Canadians can expect only modest wage increases through 2025, following years of declining wage growth. As a result, housing affordability continues to worsen for many.
In response to this crisis, leaders of Canada’s major political parties have made housing policy a central focus of their campaigns. Prime Minister Mark Carney has proposed a policy to exempt first-time home buyers from the federal Goods and Services Tax (GST) on homes valued under $1 million. Meanwhile, Conservative Leader Pierre Poilievre has pledged to eliminate the GST on new homes priced under $1.3 million. The Liberal Party has also announced plans to create a new national “public housing development agency” aimed at accelerating the construction of new homes in Canada.
NDP Leader Jagmeet Singh has expressed deep concern about the housing cost burden, particularly for younger generations, calling the housing crisis the most pressing issue for millennials and Generation Z. Currently, the federal government offers a rebate of up to $6,300 (or 36% of GST) for homes priced under $350,000. However, this rebate decreases for homes priced above that threshold and is unavailable for properties exceeding $450,000.
As Canada’s housing crisis intensifies, the gap between rising home prices and stagnant wages continues to shape political discourse, with solutions varying across party lines but all acknowledging the need for urgent action.