Subsidized social housing promotes economic well-being for Canadian renters, new study finds

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Subsidized social housing promotes economic well-being for ********* renters, new study finds

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The years following the COVID-19 pandemic were difficult for renters. The pandemic was followed by

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marked by inflation,

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and rising interest rates. These increased the cost of financing for landlords and

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.

Overall, these dynamics

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.

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in many regions, and housing continues to be the main expense for many.

Of course, access to affordable housing is an important factor in economic well-being—the ability to meet basic needs, absorb financial shocks, build assets and maintain financial means throughout one’s life.

Research shows that

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, particularly among low-income households. Without affordable housing options, many are

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just to keep a roof over their heads and food on the table.

Evolving housing policy in Canada

Canada’s housing policies have evolved over decades, dating back to the end of the Second World War.

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involving provincial, territorial and municipal governments.

Today, housing interventions take a variety of forms and have undergone a revival since 2017, when Justin Trudeau’s Liberal government launched the

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(NHS). The objective of the strategy is to “ensure everyone in Canada has access to housing that meets their needs.”

Rental housing is owned by four main types of landlords in Canada: the private sector, along with governments, co-operatives and non-profit organizations. Each of these sectors includes units subsidized by public programs, called social housing.

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, rising rents and the range of assistance available to low-income renters raises the following question: what type of assistance contributes the most to the economic well-being of ********* renters?

Types of rental housing and economic well-being

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addressed this question by documenting the relationships between different types of rental housing and the level of economic well-being of tenants. We were particularly interested in households with working-age members aged 15 to 65.

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Our study is based on the first cycle of the

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. This sample represents all provinces, the Yukon and Nunavut. The study used various statistical methods to model the economic well-being of tenant households.

We compared social housing tenants with other tenants who share the same profile—

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, who are often single parents and who are more likely to have experienced homelessness.

Our results showed that different types of social and non-market housing improve the economic well-being of tenants in different ways. Households living in co-operatives, non-profits and government-owned (also called public) social housing reported greater ease in securing their basic needs like food, clothing, housing and transportation.

This positive effect was also observed for households renting in the private market who received a rent supplement—

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.

However, no significant effect was observed for

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, a form of in-cash assistance paid directly to households administrated by the provinces and territories, and now supported through the Canada Housing Benefit program.

Paying rent on time

Another important element of tenants’ economic well-being is their ability to pay rent on time. Some groups face greater challenges in meeting this obligation.

Our study found that one-person households, single-parent households and households with children are more likely to skip rent payments. The same is true if the household’s main respondent identifies as LGBTQ+, is Indigenous, is unemployed, has a chronic illness or has experienced homelessness or eviction in the past.

Our study also showed that tenants living in non-profit organizations, public social housing, who received a rent supplement while renting in the private market or who received a housing allowance were less likely to skip or postpone rent payments.

These findings point to the stabilizing role of social housing and targeted financial support in helping vulnerable households avoid cycles of poverty and displacement.

Improving the economic well-being of tenants

The newly elected Liberal government is looking to make structural changes to housing policies by creating a new Crown corporation,

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. This entity would take on the development of new housing for Canadians.

Our findings show that it’s important for Canada to produce social and non-market housing financed over the long term, with rents set according to households’ ability to pay. These social and non-market housing

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and are the most likely to help low-income tenants pay their rent and other bills.

The new government’s challenge appears daunting as organizations across the country call for more social housing at a time when Canada has relatively less social housing than it did 30 years ago.

While Canada is facing renewed

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, it is time to return to an ambitious social housing model to address the affordability crisis and ensure the economic well-being of all tenants.

Provided by
The Conversation

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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Subsidized social housing promotes economic well-being for ********* renters, new study finds (2025, June 3)
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