Canadians blame federal government, immigration for housing woes: surveys

Canadians blame federal government and immigration for housing woes: surveys

High-rise building construction project in Vancouver (left) and Prime Minister Justin Trudeau (right). (Shutterstock)

In recent weeks, the findings of three separate national surveys conducted by three different polling companies suggest a large proportion of Canadians believe the federal government — and specific major policies that are directly under their control — are the leading factors for bringing Canada’s housing affordability and supply crisis to new heights.

The Leger survey, in partnership with Canadian Press, found 40% of Canadians overall blame the federal government for the housing crisis, followed by 32% who put the onus on their provincial government, and 6% on their municipal government.

More than four-in-10 homeowners (43%) assert the federal government is at fault, followed by 31% who blame their provincial government and 6% on their municipal government.

But amongst renters, 37% blame their provincial government, 35% blame the federal government, and 6% also blame their municipal government.

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The separate Pallas Data survey found that more Canadians overall similarly blame the federal government for the housing crisis. Nearly four-in-10 respondents named the federal government, followed by their provincial government (18.5%), the Bank of Canada’s policy interest rates (9%), municipal governments (7.3%), and banks and their mortgage policies (7.1%).

Alberta residents (58.3%) are most likely to blame the federal government, followed by residents in the Prairie provinces (45%), Ontario (40.7%), British Columbia (36.6%), Atlantic provinces (36.4%), and Quebec (19.5%).

Residents in Quebec and Ontario are more likely to blame their provincial government for the housing crisis, with 29.8% and 20.2%, respectively, assigning the blame to this particular level of government. This is followed by 11.1% in Alberta, 10.1% in the Atlantic provinces, 9.7% in BC, and 8.1% in the Prairie provinces.

Quebec residents (13.1%) are most likely to blame their local and municipal government, which is the level of government directly responsible for zoning, permit approvals, and community plans. It should also be noted that provincial governments also oversee the policies and strategies of their municipal governments.

“The old truism that perception is reality applies here. Housing is indeed a provincial responsibility, but Canadians think that the federal government is responsible for the crisis,” said Joseph Angolano, founder and CEO of Pallas Data, in a statement.

“So the Trudeau government is faced with two options. They could dismiss these results as a product of a disinformation campaign where the federal government is wrongly held responsible for a problem that is not under their control… or the Liberals could interpret these results as a cry for help from Canadians. They expect leadership from their federal government on a difficult challenge facing the country.”

The same Pallas Data survey also found the federal Conservative Party led by Pierre Poilievre now has a nine-point lead over Justin Trudeau’s governing Liberals. The Conservatives now lead with 39%, followed by the Liberals with 30%, Jagmeet Singh’s NDP with 17%, Yves-Francois Blanchet’s Bloc Quebecois with 7%, and Elizabeth May’s Greens at 5%.

Another separate survey by Nanos, in partnership with Bloomberg, found 68% of respondents believe the federal government’s elevated immigration targets will have a negative impact on the cost of housing, with residents in the Prairie provinces (70%) most likely to believe this, followed by Quebec (69%), Ontario (68%), Atlantic provinces (66%), and BC (64%).

The federal government is increasing its annual intake of new permanent residents from 465,000 in 2023 to 500,000 by 2025 — adding to the already-elevated figures that were recorded over the last two years and just before the pandemic. The federal government’s immigration policy is driven by its priorities to address Canada’s immense labour shortage, low birth rate, and long-term economic growth.

But the pace of new housing is not keeping up with demand and population growth, with a recent TD Bank analysis estimating Canada is facing a deficit of 500,000 homes over the next two years.

Moreover, according to the Nanos poll, the proportion of Canadians who believe the federal government’s high spending and budget deficit policies are causing the rise in prices and cost of living has grown from 26% in July 2022 to 30% in August 2023. Another 10% blame the Bank of Canada’s policy interest rate policies, rising from 3% in July 2022 to 10% in August 2023.

Businesses are being blamed, too, for increasing their prices, with the proportion growing from 13% in July 2022 to 22% in August 2023.

Over the same period, the proportions of those who blamed pandemic-induced supply chain disruptions and the Russia-Ukraine War for the cost escalation trends fell from 31% to 17% and 17% to 8%, respectively.

The Leger survey also found that in the past few months, 55% of Canadians who have a mortgage or rent their primary residence have worried about being able to pay their mortgage or rent, with the proportion highest amongst British Columbians (68%), Albertans (67%), and young adults ages 18 to 34 (66%).

It is also suggested Canada has significant rental supply through potential secondary suites. The survey found that 15% of respondents across the country have rentable space but don’t rent out, with the proportion highest in Alberta (25%), urban areas (20%), Ontario (17%), and BC (14%).

When asked what governments could do to improve the rental housing market, 79% said provide more government-supplied affordable housing, 79% also said offer more incentives to developers and builders, 77% said tighten rent controls, 68% said give subsidies to renters based on income levels, and 64% said offer more incentives to homeowners to encourage them to provide rental suites. Respondents were least likely to support the move of discouraging short-term rentals such as Airbnb (56%).

The Leger survey was conducted from August 18 to 20 with a sample size of 1,537 Canadians of an adult age. It has a margin of error of +/-2.5%, 19 times out of 20.

The Pallas Data survey was conducted from August 16 to 20, with 1,021 adults living in Canada. Its margin of error is +/-3.1%, 19 times out of 20.

The Nanos poll surveyed 1,081 Canadians of an adult age from July 30 to August 3. The margin of error is +/-3%, 19 times out of 20.

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