Infrastructure Matters – For Affordable Cities

By: Matt Buckman, Senior?Director?of?Programs?&?Partnerships, Canadian Urban Institute ?

What does affordability mean to you?

Affordability in Canadian cities, both large and small is a multifaceted, complex issue influenced by many factors including housing costs, income levels and job availability, cost of goods and the availability of services.

Released in November 2023, the first State of Canada’s Cities report by the Canadian Urban Institute (CUI) explored affordability comparing the challenges in both large and small communities. Large cities like Montreal, Toronto, and Vancouver are often cited as the least affordable due to high housing costs relative to average incomes. However, smaller cities and urban regions may offer more affordable living conditions, but they also come with their own set of challenges. https://canurb.org/publications/the-state-of-canadas-cities-report/

There are several factors contributing to the affordability of a city. Housing costs, the most talked about, is the obvious and significant factor, but other elements such as transportation, access to services, and employment opportunities also play crucial roles. For example, CUI found that cities with robust public transportation systems and diverse employment opportunities tend to be more affordable, even if their housing costs are higher because residents can save on transportation costs and have better access to higher-paying jobs.

CUI's research looked at case studies of various Canadian cities, examining how they address affordability. For instance, cities like Winnipeg and Halifax have implemented policies to increase the availability of affordable housing and support low-income residents. These cities have focused on creating mixed-income communities and investing in public housing projects. To make an even bigger impact, they have successfully leveraged federal and provincial funding to deepen the benefits of these projects.

Despite efforts from across the country to address affordability, challenges remain. The report highlighted that many cities struggle with outdated fiscal and governance structures that limit their ability to address affordability effectively – whether its financial tools or policymaking authorities. There is a need for coordinated leadership and innovative policy solutions to overcome these barriers. The report called for a re-evaluation of how cities are funded and governed, suggesting that more autonomy and resources at the municipal level could lead to better outcomes.

Housing affordability also impacts diverse communities in Canada in different ways. Indigenous and racialized communities often face greater challenges in accessing affordable housing, and may be more likely to experiences housing instability, overcrowding and substandard living conditions. Additionally, renters, especially those in urban areas, are more affected by rising rents and housing costs compared to homeowners. Addressing these disparities requires targeted policies and inclusive housing strategies to ensure equitable access to affordable housing.

By focusing on three primary urban systems – housing, transportation, and economic opportunity - cities can create more affordable and livable environments for their residents. Achieving this goal will require coordinated efforts from regional municipalities, all levels of government, and the private sector.

State of Canada's Cities Summit

Our research provides a comprehensive overview of the current state of affordability and offers valuable insights into potential solutions—all of which will continue to be explored by experts at the second annual State of Canada’s Cities Summit. Speakers and panelists will be tackling the future of infrastructure in Canada. Following last year’s inaugural and sold-out event, this year’s Summit will take place in Ottawa at the National Arts Centre on December 5-6, 2024.

Register today to hear about how infrastructure matters for social innovation and much more. https://stateofcitiessummit.ca/