November 22 is National Housing Day, a time to recognize both the progress made and the work still needed to ensure everyone in Canada has access to safe, affordable housing. Each year, this day reminds us that a secure home is the foundation of stability and opportunity.

As a mortgage lender in Canada on a mission to deliver the bright side of mortgages, it is essential to join the conversation on this topic. As we mark National Housing Day 2025, the national conversation around housing has intensified, shaped by high borrowing costs, tight supply, and new commitments to accelerate construction. While signs of improvement are emerging, housing affordability remains the defining challenge for many Canadians.

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Key Takeaways

• National Housing Day was established in 2000 to advocate for reducing homelessness in Canada.
• The National Housing Strategy was established to give more Canadians a place to call home. 
• Homelessness is a product of the rapid decline in home affordability, affecting everyone.

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What Is National Housing Day?

In 1998, homelessness was declared a national disaster in Canada. Two years later, National Housing Day was formally recognized to raise awareness of Canada’s increasing housing challenges and homelessness. National Housing Day is observed every year on November 22nd to recognize the importance of affordable housing and the collective efforts required to make it accessible to all Canadians. It serves as both a celebration of progress and a reminder of ongoing challenges from homelessness prevention to housing affordability.

This annual reflection takes on new urgency in 2025 as housing costs continue to strain households across the country, from first-time buyers struggling to qualify for mortgages to renters navigating record-high rents. The Canadian Mortgage and Housing Corporation (CMHC) estimates that Canada needs to increase housing starts to around 430,000 to 480,000 units per year until 2035 to meet demand and restore housing affordability.

National Housing Strategy (NHS)

The National Housing Strategy (NHS), launched in 2017, is a 10-year federal initiative that aims to implement a national plan to ensure Canadians can access affordable housing that meets their needs. This $115 billion plus plan aims to give more Canadians a place to call home. 

As of June 30, 2025, the Strategy has delivered:

• $69.62 billion in total funding commitments
• 170,716 new housing units created or committed across Canada
• 363,454 community housing units protected, ensuring affordability for low-income households
• 33.7% of funding committed toward meeting the housing needs of women and their children

How Homeownership Has Evolved in Canada Through the Years

To understand how we reached today’s affordability crisis, it’s worth looking back at how homeownership evolved across generations. The Dominion Housing Act, the first national housing legislation, was established in 1935 to speed up recovery from the Great Depression. This act provided $20 million in cheap and flexible loans and helped finance 4,900 units over 3 years. By the time the National Housing Act was established in 1938, the goal was to make home financing more accessible for the average person. 

After the Second World War, to accommodate returning veterans and their families, as well as the increase in immigration, the federal government made significant investments in housing. Over 45,000 homes were built nationwide, creating new neighbourhoods to meet the growing housing needs of those returning from war. 

Canada quickly became a homeownership society, with homeownership rates growing from 40% in the 1930s to almost 70% by 2011. Homeownership has been and remains the foundation of financial stability and well-being in the country. If we compare the situation decades ago to today, homeownership is much harder for the average Canadian to achieve. Between the 1950s and 1980s, many families bought homes in major cities like Toronto on modest incomes.

Let’s Run Some Numbers

• In the 50s, you might have bought the average Toronto home in the $12-15K range with an annual income of $3-6K. This would have been around 3-4x your annual salary. A high-end home in the city would have run you about $30K, and your annual income would likely be in the upper range of $10K or more, keeping in line with the 3x income projection. 

• As the ’60s progressed and the ’70s rolled in, the 3 times income factor became the norm. Average home prices hovered around $60,000, and annual incomes were around the $20-25K range. 
• As the 1980s came and inflation hit, mortgage interest rates doubled from 10% to 20%. It was tough for homeowners when mortgage payments suddenly jumped from $800 to $1600. 

Today, the housing market is quite different. Statistics Canada reported that the median after-tax household income for families and unattached individuals was $74,200 in 2023, while home prices now average $676,154 nationally, up 0.7% from last year. 

The home price-to-household-income ratio is approximately 9.1x the median household income. That ratio is roughly triple what was considered affordable in the 1960s and highlights how steep the gap has become between earnings and home values.e for the majority of the Canadian population.

Now, Let’s Talk About Renting

Typically, renters would exit the rental market once they have saved enough for a down payment and become homeowners. However, higher interest rates have made it difficult for many to undergo the stress test and qualify for a mortgage. 

Most Canadians continue to rent and remain on the sidelines, creating more demand for rental units. To add fuel to the fire, ongoing increases in mortgage rates for homeowners renewing their mortgages directly influence mortgage carrying costs, making owning investment properties costlier. Homeowners with rentals and no rent control can choose to pass these rising costs on to their tenants, driving up rents and pricing people out of their homes. 

In this way, Canadian housing is situated in a precarious cycle centred around the supply and demand of housing. Currently, the demand for housing significantly outweighs supply. The decline in housing affordability has pushed more people towards renting, even as the availability of rental properties is reduced as investors exit the market. 

We now see ourselves in a market that is too costly for anyone seeking affordable housing, whether buying or renting. 

Housing insecurity affects marginalized people more than ever, and its scope is growing to include the middle class. Even those making 6 figures in major cities are spending half or more of their after-tax income on housing, a significant leap from the 30% of after-tax income which is typically considered the affordable maximum.

Homelessness in Canada and the Effectiveness of the National Housing Strategy

The Government of Canada’s National Homelessness Indicators show that homelessness has accelerated. Nationally, the median increased from 24 per 10,000 people in January 2024 to peak at 30.1 per 10,000 in July 2025. 

This means that for every 10,000 residents in Canada, around 30 are estimated to be without stable housing for at least one day during the reporting month. This median highlights how persistent homelessness has become nationwide. Homelessness isn’t limited to large urban cities either; it exists in virtually every region of the country. 

Why Housing Policy Is Key to Canada’s Economic Stability

The National Housing Strategy has committed $69.62 billion of the over $115 billion planned as of June 30, 2025. 170,716 units have been built or committed, falling short of the 240,000 target. Building on the NHS, the Government of Canada introduced a new initiative, Solving the Housing Crisis: Canada’s Housing Plan.

Canada’s Housing Plan aims to make housing more attainable and affordable and has committed to: 

1. bring down construction costs and build more homes,
2. make it easier to rent or own a home, ensuring that renters and homeowners can keep their homes, and 
3. help Canadians unable to afford a home by building affordable housing for students and seniors to work toward ending chronic homelessness. 

The NHS represents the most significant federal investment in housing in decades. Their success will depend on how effectively funding commitments translate into completed, livable homes and how quickly new rental and supportive housing units can come online to prevent more Canadians from slipping into housing insecurity.

Tying these efforts to broader housing policy, CMHC and the Bank of Canada continue to emphasize that improving affordability is not only a matter of social well-being but also economic stability. As housing pressures persist, ensuring that Canadians can access safe, affordable homes remains central to both the nation’s growth and its long-term financial resilience.

Federal Budget 2025

Recently, Budget 2025 recognized the housing supply gap, with the Parliamentary Budget Officer estimating that 290,000 homes per year are needed to close it. As part of the plan to increase affordable housing supply, the budget proposes a $25 billion investment over 5 years, allocating $16 billion to existing programs, $7 billion to Build Canada Homes, and $2 billion to tax measures. 
The federal government has also proposed eliminating GST for first-time home buyers of homes valued at or under $1 million and using federal funds invested in Build Canada Homes to attract private capital, investors, and builders to expand the housing supply. 

Final Thoughts

As a national lender, nesto will continue to shed light and be a voice on this issue, as we believe that making homes affordable will benefit everyone. As Canada marks National Housing Day 2025, it’s clear that the path to affordability and stability requires collective effort. Governments, lenders, builders, and communities each play a critical role in ensuring that no Canadian is left without a place to call home.

We’ll continue to advocate for solutions that make homeownership attainable for everyone. Whether you’re buying, renewing, or refinancing, nesto mortgage experts are here to help you navigate today’s market with clarity and confidence.

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Why Choose nesto

At nesto, our commission-free mortgage experts, certified in multiple provinces, provide exceptional advice and service that exceeds industry standards. Our mortgage experts are salaried employees who provide impartial guidance on mortgage options tailored to your needs and are evaluated based on client satisfaction and the quality of their advice. nesto aims to transform the mortgage industry by providing honest advice and competitive rates through a 100% digital, transparent, and seamless process.

nesto is on a mission to offer a positive, empowering and transparent property financing experience – simplified from start to finish.

Contact our licensed and knowledgeable mortgage experts to find your best mortgage rate in Canada.

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