Ontario’s housing crisis has emerged as a defining issue in the 2025 provincial election, with affordability concerns dominating discussions among voters. According to a recent Royal LePage survey, 69% of Ontarians say a party or candidate’s housing policies will influence their vote, with young people and renters showing the highest levels of concern.
This detailed blog will explore the key challenges behind Ontario’s housing affordability crisis, voter concerns, political responses, and potential solutions to address the supply shortage.
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1. Housing Affordability: A Crisis at the Ballot Box
For years, Ontario’s housing market has faced mounting pressure due to rising home prices, limited inventory, and increasing demand from population growth. Housing affordability is now a top voting priority, ranking second only to healthcare among the province’s most pressing election issues.
a) Voter Priorities by Generation
The Royal LePage survey reveals generational differences in how Ontarians rank housing concerns:
- Gen Z & Millennials: Housing affordability ranks as their #1 priority, surpassing all other concerns.
- Gen X & Baby Boomers: Healthcare remains their top concern, though housing still ranks highly.
These findings indicate that younger generations, many of whom are first-time buyers or renters, feel the greatest impact from skyrocketing housing prices.
b) Renters and First-Time Buyers Feel the Pressure
Among renters and those planning to buy a home within two years, 82% consider housing a deciding election issue. Many younger Ontarians fear they may never be able to afford a home unless drastic changes occur.
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2. Ontario’s Housing Market: Key Challenges
a) Supply Shortage: The Core Issue
The fundamental driver of Ontario’s housing crisis is the severe shortage of available homes. In major cities like Toronto, Hamilton, and Ottawa, demand continues to outpace supply, pushing prices beyond the reach of many buyers.
The province has seen record-high immigration and population growth, further straining housing availability. Construction rates have not kept pace with this influx, leading to an undersupply of homes.
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b) Interest Rates and Mortgage Challenges
While interest rates have fallen from their 2023 peak, many homebuyers still face higher borrowing costs compared to pre-pandemic levels. The cost of mortgage renewals in 2025 remains a concern, particularly for homeowners who secured ultra-low rates in 2020-2021 and now face higher renewal payments.
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c) Investor-Owned Properties
Another factor contributing to Ontario’s affordability crisis is the high percentage of investor-owned properties. Many homes are bought as rental properties or speculative investments, reducing supply for actual homebuyers. Critics argue that stricter regulations on real estate investment could help rebalance the market.
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d) Rising Cost of Living
Beyond housing, inflation and the rising cost of living make homeownership even less attainable. Many Ontarians are struggling with higher food, gas, and utility bills, making it difficult to save for a down payment.
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3. The Election’s Impact on Housing Policy
With the Ontario election approaching, voters are looking to political parties for solutions to the housing crisis. Each party has presented policies aimed at tackling affordability, increasing supply, and addressing rental concerns.
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a) Political Party Housing Platforms
Here’s how Ontario’s major parties are addressing the housing crisis:
Progressive Conservative Party
- Committed to accelerating housing development by reducing zoning restrictions.
- Supports public-private partnerships to boost housing supply.
- Plans to streamline building approvals to fast-track new developments.
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Liberal Party
- Pledges to build 1.5 million homes over 10 years.
- Proposes expanding rent control to prevent excessive increases.
- Wants to introduce new taxes on vacant properties to curb speculation.
New Democratic Party (NDP)
- Promises to create affordable housing units through government-led construction.
- Supports higher taxation on corporate real estate investors.
- Proposes rental subsidies for low- and middle-income families.
Green Party
- Focuses on sustainable housing initiatives, including eco-friendly developments.
- Supports tiny home communities and co-op housing programs.
- Calls for stronger tenant protections to combat rent gouging.
Each party’s approach varies, but all acknowledge the need for aggressive action to address the housing crisis.
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4. Young Ontarians Are Willing to Make Drastic Moves
With affordability at an all-time low, young Ontarians are considering alternative strategies to achieve homeownership.
a) Relocating to More Affordable Areas
- 38% of Ontarians would move to a more affordable region within the province.
- 20% would leave Ontario altogether to buy a home in another province.
b) Alternative Homeownership Strategies
- 18% are considering purchasing homes with rental units to offset mortgage costs.
- 12% would co-purchase a home with family or friends to share expenses.
These findings indicate a major shift in homeownership strategies, as buyers adapt to changing market conditions.
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5. Will Housing Become More Affordable in 2025?
a) Falling Interest Rates Could Provide Temporary Relief
Since mid-2024, the Bank of Canada has cut interest rates, making borrowing slightly more affordable. However, experts warn that rates will not return to pandemic-era lows, meaning home prices could remain high.
b) Government Action Will Be Critical
Long-term affordability solutions will require policy intervention. Industry leaders are calling for:
- Zoning reform to allow more multi-unit housing.
- Faster building approvals to increase construction.
- Incentives for first-time buyers, such as down payment assistance programs.
Without massive increases in housing supply, affordability challenges could persist for years.
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6. The Future of Ontario’s Housing Market
With the 2025 Ontario election just days away, housing affordability remains a key issue that could shape the outcome. Younger voters, renters, and first-time buyers are demanding solutions, making housing one of the most influential factors at the ballot box.
a) Key Takeaways:
- 69% of Ontarians say housing policies will influence their vote.
- Housing is the #1 election issue for Gen Z and millennials.
- Many are considering relocation or alternative ownership models to cope with affordability.
- Political parties have varied approaches to tackling the crisis, from rent control to boosting housing supply.
Ontario’s next government will face immense pressure to act swiftly. Regardless of election outcomes, one thing is clear—Ontarians want real, lasting solutions to the housing crisis.
