Fact Sheet: The Affordability Crisis in Canada

Canada is grappling with a significant affordability crisis affecting housing, health care, child care, food security, and education. This crisis places substantial financial pressure on households, particularly those with lower incomes. Additionally, addressing the crisis involves adhering to guidelines for decent work, such as those set by the International Labour Organization (ILO). This fact sheet provides an overview of the key affordability issues and the role of decent work standards in alleviating some of these challenges.

1. Housing Affordability

Rising Costs: Housing prices in Canada have soared, making homeownership increasingly unattainable. For example, average home prices in cities like Vancouver and Toronto have doubled in the past decade.

Rental Market: The cost of rent has also escalated, with many cities seeing average monthly rents rise significantly. According to the Canada Mortgage and Housing Corporation (CMHC), rental prices in major urban centers have increased by 20% or more over recent years.

Government Response: Efforts to address the housing crisis include federal and provincial initiatives to build affordable housing and support low-income renters, though progress has been slow.

2. Health Care Affordability

System Strain: Canada’s public health care system is under pressure due to an aging population and increased service demand, leading to longer wait times and access issues.

Private Clinics: The rise of private, for-profit clinics poses a growing concern. These clinics can introduce user fees and additional billing practices not covered by the public health insurance system, potentially leading to two-tiered care. Patients might face higher out-of-pocket costs and increased financial burdens, particularly if they require services not covered by their insurance or if wait times in the public system are long.

• Government Trends: Right-wing governments are increasingly supportive of private, for-profit health care models. Their policies often aim to normalize the use of private clinics as a solution to the inefficiencies of the public system. However, this approach risks further entrenching inequities by creating a system where those with greater financial resources can access faster or more comprehensive care, while those relying on public health services face longer wait times and limited options.
• Cost Implications: Normalizing private clinics could shift significant costs onto Canadians. While proponents argue that private clinics can reduce wait times and provide more efficient care, critics warn that this could lead to increased overall health care costs and reduced access for lower-income individuals. The risk is that private care becomes a more prevalent option, leading to a deterioration of the universal, publicly funded health care system and widening disparities in health care access and quality.

Funding Needs: Increased investment is needed to improve health care services and support health care workers. Proposals include universal pharmacare and expanded mental health and dental benefits.

3. Gender Pay Gap

Gendered poverty: Women are consistently more vulnerable to low income than men, earning 84 cents for every dollar men make. The pay gap is even more pronounced for Indigenous women, racialized women, new Canadians and those who identify as 2SLGBTQ+.

Precarious employment: Women are concentrated in underpaid, precarious occupations in the ‘5 Cs’: caring, clerical, catering, cashiering, and cleaning. In these sectors, poor working conditions and lack of decent work persist.

4. Child Care Affordability

High Costs: Child care expenses are a major financial burden, with full-time care often exceeding $1,000 per month in some cities.

Government Initiatives: Plans to reduce child care fees to $10 a day are underway, but a shortage of spaces limits the program’s effectiveness.

Expansion Needs: There is a need for more publicly funded and managed child care spaces and adequate staffing to meet demand.

5. Food Security

Soaring Prices: Food prices have risen sharply due to inflation, global supply chain disruptions, and climate change impacts, increasing food insecurity among Canadian households.

Rising Demand for Food Banks: As food prices climb, more Canadians are turning to food banks for assistance. According to recent statistics, food bank usage in Canada has reached unprecedented levels, with more than 1.5 million individuals relying on these services each month. This includes a growing number of working families who, despite having jobs, struggle to afford basic necessities due to stagnant wages and high living costs.

Impact on Vulnerable Populations: The rise in food bank usage highlights a critical issue: many Canadians are facing severe food insecurity. This impacts their overall health and well-being, particularly for children and elderly individuals. Increasing food prices mean that many households must make difficult choices between paying for food and other essentials such as housing and healthcare.

Long-Term Solutions: Addressing food security effectively requires a multi-pronged approach, including investment in sustainable agriculture, support for local food systems, and policies to reduce the overall cost of living. Ensuring that low-income individuals and families have access to affordable, nutritious food is essential for reducing reliance on food banks and improving public health.

6. Education Affordability

Rising Tuition: Post-secondary education costs are climbing, leading to high tuition fees and significant student debt burdens.

Funding and Support: Federal funding proposals aim to lower tuition costs and support students, including expanding access to apprenticeships and skills training.

7. Decent Work

ILO Guidelines: The International Labour Organization (ILO) provides guidelines to ensure decent work in the agri-food sector, which is crucial for addressing issues in food security and affordability.

Employment Opportunities: Ensure that work is available and accessible to all, particularly marginalized groups.

Fair Income: Guarantee fair wages that meet the basic needs of workers and their families.

Safe Working Conditions: Provide a safe and healthy working environment, minimizing risks and ensuring worker safety.

Social Protection: Offer comprehensive social protection, including health care, maternity benefits, and unemployment insurance.

Rights and Dignity: Respect workers’ rights, including freedom of association, collective bargaining, and protection against discrimination and exploitation.

8. Impact on Low-Income Families

Increased Pressure: Low-income families are particularly hard-hit by the affordability crisis, spending a larger proportion of their income on essentials like housing and food.

Government Support: Programs such as the Canada Child Benefit and various income support measures aim to alleviate financial pressure, though they may not fully address rising costs.

The affordability crisis in Canada presents significant challenges, impacting housing, health care, child care, food security, and education. Addressing these issues requires a multi-faceted approach, including adherence to decent work standards, particularly in the agri-food sector, to ensure fair wages, safe working conditions, and comprehensive social protection. A holistic policy response is essential to create a more equitable and sustainable future for all Canadians.

Together, we can make a difference. Together, we can build a Canada where everyone can afford to live with dignity and security. Join the Affordability for All campaign today and be a part of the movement for change. Together, let's ensure that affordability isn't just a dream—it's a reality for all Canadians.

Send a message to your Member of Parliament, spread the word, and take action! Ask your elected representatives what actions they are taking to address the affordability crisis.