TORONTO—A new report released today by Boston Consulting Group (BCG) in collaboration with CivicAction reveals the staggering consequences of the housing crisis in the Greater Toronto and Hamilton Area (GTHA) and across Canada. The report, Greater Toronto and Hamilton Area Housing Crisis: Hidden Costs, Bold Solutions, highlights how housing unaffordability is forcing workers out of the region, straining infrastructure, and threatening economic stability. As the most populous region in Canada, GTHA’s unaffordability crisis reverberates across the province and country.
“This isn’t just a housing issue—it’s a full-blown economic, productivity, and labour crisis,” says Kristin Wheatley, Managing Director and Partner at BCG. “Teachers, construction workers, and service providers—the backbone of our communities—are being priced out. If workers can’t afford to live where they work, our economy will pay the price.”
A Crisis Beyond Housing
The report finds that nearly one in two households in the GTHA earn between $40,000 and $125,000 annually, a group termed the “Squeezed-Out Working Population.” Many of these workers, including healthcare professionals, caregivers, tradespeople, artists, and transit operators, struggle to secure affordable housing within a reasonable distance from their jobs. As a result, many face tough trade-offs that impact their quality of life and economic mobility.
The consequences of housing unaffordability are far-reaching:
- Economic Drag: High housing costs reduce discretionary spending, increase household debt, and slow economic growth.
- Labour Shortages: Employers struggle to attract and retain workers, leading to a projected $2.8 billion increase in annual payroll costs.
- Strained Social Services: Food insecurity has expanded beyond the jobless: Over 50% of new food bank clients in Toronto come from households where at least one person is employed.
- Rising Healthcare Costs: Housing instability contributes to worse health outcomes, driving up reliance on social and emergency services.
Barriers to Progress and the Need for Bold Action
Systemic barriers are blocking meaningful progress in solving the housing crisis. The report identifies key challenges, including restricted zoning laws, long approval timelines, misaligned market incentives, and a construction labour shortage.
“Housing unaffordability in the GTHA isn’t new,” says Leslie Woo, CEO of CivicAction, “but it has reached an alarming level and impacts Canada’s economic stability. Many of us feel the crunch. We need action at a new speed, scale, and coordination. Governments, businesses, and community leaders need to get aligned and rework housing policies, financing, and planning for a livable, prosperous, and sustainable region.”
Lessons from Global Leaders
The report outlines innovative housing solutions from cities worldwide, identifying four key approaches that could be adapted for the GTHA:
- Public Housing Expansion. Vienna and Singapore have successfully scaled government-supported housing for essential workers.
- Faster, Smarter Construction. Sweden and Boston have streamlined approvals and adopted prefabricated housing to increase supply.
- Blended Finance Models. France and Denmark have leveraged public-private financing to fund affordable housing.
- Integrated Urban Planning. Tokyo and Portland have combined zoning reforms, transit expansion, and workforce housing initiatives.
Path Forward: A Call for Collaboration
The report calls for fast-tracking approvals for workforce housing, expanding funding options for affordable developments, and modernizing zoning regulations.
“The solutions exist—what’s missing is coordinated action,” said Nan DasGupta, BCG Senior Advisor and CivicAction Board member. “By aligning efforts around proven approaches, we can ensure that the GTHA remains a vibrant, inclusive, and economically competitive region.”
Media Contacts:
CivicAction:
Andrea Gunraj
+ 1 416-270-2415
andrea.gunraj@civicaction.ca
BCG:
Eric Gregoire
+1 617 850 3783
gregoire.eric@bcg.com
About CivicAction
CivicAction’s purpose is to elevate civic engagement that builds livable, inclusive cities in the Greater Toronto and Hamilton Area (GTHA). For over two decades, we have been mobilizing leaders and changemakers to champion innovative solutions, to accelerate the alignment of actions, and to invest in the leadership of tomorrow. Our high impact leadership programs open doors, minds, and opportunities for young, emerging, and under-represented leaders in the GTHA.