Ontario urged to act as housing crisis spreads from cities to communities across province

financialpost.com:

Ontario needs to incentivize the development and preservation of a range of affordable housing options as high housing costs limit buying power and fuel migration out of the province, a business group says.

In the policy brief released July 5, the Ontario Chamber of Commerce said it is critical to build the right types and mix of housing, including purpose-built rentals, missing middle, student, non-profit, cooperative and supportive housing.

“Housing has reached a crisis point in Ontario,” the report said. “Previously considered an urban issue, housing affordability is now impacting communities of all sizes across the province.”

The report said governments and industry are not aligned on the definition of “affordable housing,” which is generally considered to cost less than 30 per cent of household income before tax.

In an interview, Ontario Chamber of Commerce chief executive Rocco Rossi said the issue of affordability depends on where the individual lives, whether they’re making a six-figure salary and whether they are a recent immigrant or a student. He said people will have different definitions of affordability, and policy needs to reflect this.

As market rates continue to increase due in part to low supply, high demand and rising inflation, housing deemed to be “affordable” is increasingly out of reach for households in need, the report said.

Previously considered an urban issue, housing affordability is now impacting communities of all sizes across the province

Even mid-high income earners are priced out of the real estate market, which leads them to increasingly occupy market rental housing for longer, contributing to low vacancy rates and rising rental rates, it said.

“As Ontarians spend more of their income on