FIREWORKS OR SYSTEMIC CHANGE? A Turning Point for Housing in Ontario

Housing is at a pivotal moment in Ontario. Governments are announcing ambitious new housing initiatives, private investment continues to shape the market, and an increasingly sophisticated non-profit sector is taking on larger and more complex acquisitions and developments. At the same time, tenants are more informed, more anxious, and more vulnerable to disruption than at any point in recent memory.

Against this backdrop, housing dominates today's policy discussions. Yet the messages are often contradictory. Affordability remains out of reach for many Ontarians, even as builders grapple with unsold condominium inventory and rents on some new developments are declining. New affordable housing is being created, but existing affordable housing stock continues to be lost.

These competing trends raise an important question: are we witnessing a series of policy announcements, or the beginning of a fundamental shift in Canada's housing system?

The answer will depend not only on the scale of investment, but on the ability of governments, housing providers, private-sector partners and housing professionals to translate policy commitments into successful projects and well-managed communities. If today's investments, partnerships and reforms are matched with the capacity to deliver, Ontario has an opportunity to move beyond short-term announcements toward lasting systemic change.

The Challenge

For the past thirty years, Canada's housing system has largely been organized around one guiding principle: return on investment. That model has delivered millions of new homes, attracted significant private capital, and fostered sophisticated development, financing and property management industries.

However, this approach has come with trade-offs. It has contributed to rising housing costs, increasing concentration of ownership, and the gradual loss of affordable rental housing. This evolution - commonly referred to as the financialization of housing - reflects a system in which housing is increasingly treated as an investment asset. When housing is optimized for financial performance, displacement is not a failure of the system; it is a feature of it.

Today's housing debate reflects the tension between two competing, but not necessarily incompatible, objectives: housing as an investment that generates financial returns, and housing as a basic human need that provides long-term stability and affordability.

Many of the apparent contradictions in today's market arise from this tension. We face housing shortages alongside unsold condominium inventory. Affordability remains a challenge even as rents decline in some new developments. Governments seek to encourage new investment while also preserving existing affordable housing and protecting vulnerable tenants.

The question then is not whether the private market has a role in housing delivery - it clearly does. The challenge is building the additional systems, institutions and partnerships needed to ensure that housing remains affordable, stable and accessible over the long term.

The Way Forward

1. Expand Community Housing

Canada needs a larger and more resilient community housing sector. Compared with many peer countries, Canada has a relatively small proportion of housing owned by non-profit organizations, co-operatives and public housing providers. Expanding this sector would not replace the private market; rather, it would create a healthier balance by ensuring a greater share of housing remains permanently affordable.

Recent federal and provincial initiatives, including Build Canada Homes, represent an important step in that direction. While these programs are still in their early stages, success will depend on focusing not only on funding new housing, but on strengthening the systems that make housing delivery possible. That includes supporting modern construction methods, removing legislative barriers, standardizing contracts and procurement processes, and building the infrastructure needed to deliver housing at scale.

Equally important is preserving the affordable housing that already exists. Older rental buildings with long-term tenants remain some of Canada's most affordable homes. Once these buildings are redeveloped or repositioned, that affordability is often lost permanently. Acquisition and preservation programs should therefore be viewed as a core housing strategy, alongside new construction.

Taken together, these initiatives suggest that governments are beginning to develop practical tools not only to build affordable housing, but also to preserve it - an encouraging sign that Canada's housing response may be evolving from isolated announcements toward lasting systemic change.

2. Strengthen the Capacity of the Non-Profit Sector

Expanding community housing will require more than public investment. It will also require increasingly sophisticated non-profit organizations capable of leading complex acquisitions, development projects, financing arrangements and long-term operations.

Across Ontario, many non-profit housing providers are already demonstrating that capacity through innovative partnerships and increasingly complex transactions. As the sector continues to grow, its operational and organizational maturity will be just as important as the availability of funding.

3. Recognize Property Management and Tenant Engagement as Essential Infrastructure

No housing policy succeeds unless it is translated into successful day-to-day operations.

As ownership models become more diverse and affordable housing portfolios expand, the work of on site property management and tenant relations is becoming increasingly complex. Staff teams must navigate regulatory requirements, public funding obligations, operational realities and evolving tenant needs while maintaining financially sustainable buildings.

For that reason, investment in professional property management, governance and operational capacity should be viewed as essential housing infrastructure - not simply an administrative function. Ultimately, it is the professionals working within Ontario's housing sector who determine whether ambitious housing policy becomes lasting housing stability.

From Policy to Practice

Canada did not arrive at today's housing challenges overnight, and lasting solutions will not emerge overnight either. But there are reasons for optimism.

Governments are investing in below-market housing at a scale not seen in decades. New tools are emerging to preserve existing affordable housing. Community housing providers are undertaking increasingly sophisticated partnerships and transactions. Across the sector, organizations are finding innovative ways to combine public policy objectives with private-sector expertise.

Whether these developments prove to be temporary "fireworks" or lasting systemic change will depend not only on governments, but on the community housing sector and professionals responsible for putting policy into practice.

For those working across Ontario's housing sector, this is more than a period of reform - it is an opportunity to help shape a housing system that is more resilient, more affordable and better equipped to meet the needs of future generations.

This article was adapted from John Fox’s keynote speech delivered at the Institute of Housing Management on June 2, 2026. Read full speech here

Did You Know?

• 1.8+ million Canadian households spend more than 30% of their income on shelter costs, exceeding the affordability threshold used by CMHC. (CMHC, Rental Market Report, 2024).
• Approximately 96% of Canada’s housing stock is owned by private, for-profit providers.
• Only about 4% of Canada’s housing stock (approximately 600,000 homes) is held by non-profit organizations, co-operatives and public housing providers.
• Canada’s community housing supply is approximately half the OECD average:
• Investing in public housing could generate approximately $3 in economic benefits for every $1 invested. (Research by the Canadian Centre for Economic Analysis and ScotiaBank)