A home for all: solving the GTHA’s housing crisis for a resilient future
“A society grows great when old men plant trees in whose shade they shall never sit.” This ancient Greek proverb reminds us that today’s decisions shape tomorrow’s prosperity. Nowhere is this truer than in the Greater Toronto and Hamilton Area (GTHA), where a worsening housing crisis threatens not only affordability but the very fabric of economic and social stability. As highlighted in the recent report Greater Toronto and Hamilton Area Housing Crisis: Hidden Costs, Bold Solutions, urgent action is needed to restore balance, opportunity, and resilience to the region’s housing market.
The deepening crisis: unaffordability at every level
Once a beacon of opportunity, the GTHA is fast becoming an enclave of exclusion. Home prices in Toronto are 1.6 times higher than the national average, while Hamilton’s are 1.2 times higher. The rising cost of living has far outpaced income growth, making homeownership an unattainable dream for many and even rental housing a financial burden. Nearly half of all Canadians now express deep concern about their ability to afford a home.
At the heart of the issue is the “squeezed-out working population”—households earning between $40,000 and $125,000 annually. These individuals, including teachers, nurses, tradespeople, and retail workers, are essential to the region’s economy yet are increasingly priced out of the communities they serve. As a result, they face impossible tradeoffs: sacrificing over 30% of their income on rent, enduring lengthy commutes, or relying on overburdened social services.
This crisis isn’t just about housing—it is a drain on productivity, talent retention, and economic sustainability. High housing costs are driving a $2.8 billion increase in payroll expenses as businesses struggle to attract workers. Meanwhile, food insecurity is rising, with 51% of new food bank clients in Toronto coming from working households. These trends threaten the long-term competitiveness of the GTHA, putting businesses, families, and communities at risk.
Breaking barriers: bold solutions for a better future
The report identifies four key barriers preventing large-scale progress:
Restricted development – Approximately 70% of land in the GTA is zoned for single-family homes, severely limiting density.
Cumbersome approval processes – Residential development approvals take an average of 20 months in the GTA—four times longer than in Calgary.
Capital constraints – Developers, particularly non-profits, struggle to secure early-stage financing for affordable housing projects.
Labour shortages – With 93,000 unfilled construction jobs nationwide and housing costs pushing workers out of the GTHA, the industry faces a growing skills gap.
Addressing these challenges requires bold, coordinated efforts from all sectors. The report draws on global best practices, offering four solution archetypes:
Public housing champions – Cities like Vienna and Singapore have successfully expanded affordable housing by prioritizing public and co-operative models. Toronto and Hamilton, with 67,000 city-owned affordable housing units, can build on this foundation by increasing investment and prioritizing workforce housing.
Construction catalysts – Sweden’s use of prefabricated housing, Germany’s vocational training programs, and Boston’s streamlined approval processes show how innovation can accelerate housing supply. The GTHA can replicate these successes by expanding digital permitting, adopting prefabrication, and reducing development charges.
Blended finance innovators – France and Denmark have created sustainable financing models by leveraging public-private partnerships and revolving funds. The GTHA can enhance capital access by refining lending regulations and implementing tax incentives for purpose-built rentals.
Holistic city shapers – Portland and Tokyo have aligned zoning, transportation, and economic development to create thriving, interconnected communities. The GTHA must prioritize transit-oriented development and unlock underutilized land for workforce housing.
The time for action is now
There is no silver bullet for the GTHA’s housing crisis, but inaction is not an option. The economic, social, and personal costs of unaffordability are too great to ignore. By implementing a multi-pronged approach that incorporates public, private, and non-profit collaboration, the region can build a more equitable, resilient future.
As the report highlights, solutions exist—but they require vision, commitment, and urgency. One Ontario is uniquely positioned to help overcome the barriers that hinder housing development in the GTHA. By modernizing approval processes, fostering collaboration, and leveraging technology, One Ontario can accelerate the path to affordability and sustainability.
Digitizing and streamlining approvals – One Ontario works to integrate municipal, provincial, and industry processes into a single, cohesive digital platform, reducing approval timelines from years to months. This ensures that much-needed housing developments move forward without unnecessary bureaucratic delays.
Fostering cross-sector collaboration – By bringing together government, developers, and investors, One Ontario ensures that housing solutions are both efficient and inclusive, reducing friction between stakeholders and aligning efforts toward common goals.
Providing data-driven insights – Through advanced analytics and real-time data, One Ontario identifies bottlenecks in the development process, enabling proactive policy recommendations and targeted interventions that drive efficiency and affordability.
Advocating for regulatory improvements – One Ontario champions reforms that modernize zoning laws, optimize land use, and encourage the development of family-suitable housing in proximity to economic hubs.
By prioritizing efficiency, transparency, and technological innovation, One Ontario serves not only as a facilitator but as a transformative force in the housing sector. The path forward necessitates collaboration on a scale, and with the right mechanisms in place, the GTHA can reestablish itself as a region where residents, regardless of income, can access viable and sustainable housing solutions. By modernizing approval processes, fostering collaboration, and leveraging technology, One Ontario can accelerate the path to affordability and sustainability.
For more information:
Saman Davari
BIM Manager
Saman.davari@oneontario.ca