Ontario housing crisis could be solved with non-profit and co-op housing, reports CHF Canada

Ontario’s housing crisis has left hundreds of thousands of people struggling to find an affordable place to live, and advocates say the province needs to pivot toward meaningful and long-lasting solutions.

A new report from United Way Greater Toronto (UWGT) and the Co-operative Housing Federation of Canada (CHF Canada) lays out a delivery-ready plan, built around non-profit and co-op housing. It warns that without targeted investment in affordable housing, Ontario’s goal of 1.5 million new units by 2031 will leave too many residents behind.

The Built for Good report’s modeling shows that a $16.7 billion investment over two years could jumpstart a province-wide affordable housing strategy, creating thousands of homes while also generating jobs and economic activity across Ontario.

“Ontario's protracted housing crisis continues to rob our communities of potential and prosperity, and we've identified a new roadmap for getting out of this,” President and CEO of United Way Greater Toronto, Heather McDonald, said in a statement.

Ontario’s housing gap

The report states that nearly 400,000 households in Ontario will need housing support by 2030, whether that’s via new builds, rental assistance or simply preserving existing community housing. Other key points from the report claim that:

• Over 55,000 affordable homes are at risk of being lost without investment
• More than 80,000 Ontarians experienced homelessness in the past year
• 120,000 affordable rental units were ‘lost’ between 2006 and 2021

According to Statistics Canada, 74% of Ontarians have reported facing at least one housing challenge, whether related to affordability, condition or suitability, compared to 62% nationally. CMHC estimates that Canada needs around 3.5 million new homes to be built by 2030 in order to restore affordability, with the majority of that housing gap residingr in Ontario and British Columbia.

The two-year plan laid out in the Built for Good report would aim to address Ontario’s need for affordable housing by building over 15,000 new affordable homes, as well as provide rental assistance to as many as 170,000 low-income households.

Beyond that, there is also a need to develop over 8,000 moderately affordable homes, while also preserving and repairing 65,000 existing affordable homes throughout the province.

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Why non-profit and co-op models matter

Non-profit and co-op housing providers differ from private developers in that their mandate is long-term affordability, rather than market-rate returns. This means homes built through these models are insulated from speculative pressures, which helps to stabilize housing costs over time.

“Ontario's housing crisis demands bold, proven solutions,” Tim Ross, CHFC's CEO, Ontario Region, said in a statement.

“The co-op housing sector is ready and able to deliver affordable homes that strengthen communities. With an existing pipeline of co-op projects across the province, we can build quickly, create good construction jobs and ensure public dollars result in homes that stay affordable for generations.”

The report from UWGT and CFH Canada urges all levels of government to treat affordable housing as critical infrastructure — like transportation or healthcare projects — and commit to a province-wide plan to scale up non-market housing.

How ‘Built for Good’ could reshape Ontario’s housing market

While Built for Good is aimed at policymakers, its proposals could ultimately ease pressure for Ontarian renters and buyers alike.

Expanding and preserving affordable housing stock through new builds and repairs could help prevent the loss of older, lower-cost units in high-demand areas. And impactful rental assistance measures could also offer immediate relief for households struggling with high market rents, though success would ultimately hinge on swift, well-funded action across all levels of government.

“Built for Good opens the door to opportunities for real progress by focusing on non-profit partners and the right investment, so we can build and protect the deeply affordable homes people need”, McDonald said. “This benefits all Ontarians, no matter where they find themselves on the housing continuum.”

UWGT and CHF Canada say they will be engaging government and community stakeholders across Ontario in the weeks ahead to build support for this plan. With demand projected to grow sharply over the next decade, advocates argue that meaningful action cannot wait.