The Greater Toronto Area’s housing crisis is reaching a tipping point, with soaring rents, low pay, and unstable living conditions forcing workers out of the cities they serve. Experts warn that unless governments act urgently, the exodus could hollow out essential public services and cost Ontario billions in economic losses.
A recent CivicAction report paints a stark picture of affordability in the Greater Toronto and Hamilton Area (GTHA), revealing that even households earning between $40,000 and $125,000 a year are spending well over 30% of their income on housing—far above what’s considered sustainable. For nurses, transit workers, teachers, and construction staff, being priced out of the very cities they help maintain is becoming the norm.
CivicAction CEO Leslie Woo says the crisis has moved far beyond basic financial pressure. Couples earning a combined $120,000 are now questioning whether they can afford children, let alone care for aging parents. The result? A shrinking workforce and declining mental health. Eleven percent of shelter users have jobs, and one-third of food bank clients are from working families—stark indicators of the growing disconnect between employment and affordability.
The numbers are alarming. The region has already lost over 550,000 residents between 2014 and 2024, with nearly 70% of CivicAction survey respondents stating they are considering leaving or changing careers due to housing costs. The fallout has been severe, with an estimated $7 billion annual GDP loss tied to the outmigration of middle-income earners. The GTHA, which accounts for 50% of Ontario’s GDP and 20% of Canada’s, is at risk of unraveling its economic base.
In Brampton, the crisis has taken a more visible form. The advocacy group ACORN recently rallied against the city’s draft Residential Rental Conversion and Demolition bylaw, arguing that the proposed policy fails to protect long-time tenants from displacement. The bylaw allows displaced residents to return to new units once demolished buildings are rebuilt—but does not offer support for temporary housing or address the rent hikes that typically come with new construction.
Tanya Burkart of Peel ACORN highlights the growing issue of new buildings being priced far above what previous tenants can afford. “You can build all the housing you want, but if it is unaffordable, it’s going to remain vacant,” she says. With one such development slated to replace a six-storey building at 507 Balmoral Avenue, residents fear losing their homes with nowhere within budget to go.
The effects are deeply personal. Christine Miller, a 56-year-old teacher from Etobicoke, now finds herself relying on Employment Insurance while caring for her sick mother. Once comfortably employed, she’s now facing broken car parts, rising mortgage rates, and depleted savings. She worries for younger teachers already raising families while living with their parents—many of whom, she believes, simply cannot make it on their own.
Miller’s solution is simple: raise wages in key professions, keep interest rates manageable, and ensure rent prices reflect the earnings of everyday workers. CivicAction’s Woo echoes that call, emphasizing the need for unified action, like the kind seen during the pandemic, to reset the affordability equation.
Without bold policy shifts and cross-sector cooperation, the GTA risks not just a housing crisis, but a collapse of the workforce and communities that sustain it.