It is exacting a profound social and psychological toll, especially on young adults, immigrants and lower-income families.
Researchers looked at demographic, economic, financial and personal data and explored how their social and psychological well-being might improve if unaffordability were addressed. The analysis involved more than seven million GTA residents and official statistics.CANCEA used a variety of Statistics Canada data to better scope the size of stresses and translate them to financial terms. They concluded in 2023 alone, the negative social value cost was $37 billion.
Researchers found housing unaffordability looms as a major disruptor, silently eroding the well-being of individuals and communities alike. Newcomers and renters face additional hurdles grappling with integration challenges and financial strain due to escalating rental prices. “Rising housing costs and the resulting unaffordability are not only subjects of economic debate but are also critical social issues with far-reaching consequences for community cohesion and sustainability,” the study reads.The research quantifies the impact of housing unaffordability through a social value perspective.
The analysis reveals a “disturbing” reduction in well-being among those affected by housing unaffordability, noting the social value cost of the decline is especially notable among renters and younger demographics, highlighting a societal issue that disproportionately affects specific groups.