A big topic in the Canadian news cycle is housing—its prices, how many homes are (not) being built, and how much money is to be made in real estate. Since December 2024, average home prices have dropped by $20,000, and prices have also fallen over the last nine months. The big news outlets have made a spectacle of this supposed new era of affordability for Canadians.
“Rent is getting cheaper, and houses more affordable” are words many Canadians may rejoice in reading. But taking a step back and examining the state of housing leads to one clear conclusion: mainstream media is running cover for corporate landlords, developers, and Real Estate Investment Trusts (REITs).
True, housing prices are down by about $20,000 since December. More precisely, the average home in December was $712,000, whereas in June, it was $689,000. The average down payment on such a home would be $43,900. Statistics Canada reports the average Canadian earns $58,700 a year. That means buying a house requires putting down three-quarters of a year’s income, followed by decades of mortgage payments to the bank.
For rentals, mainstream media is also correct that prices are down overall. Since last year, rents in Vancouver are down 6.5%, Toronto 5.1%, and Montreal 2.5%. But the actual monthly cost for a one-bedroom apartment in these cities is still $2,529, $2,283, and $1,966, respectively. Even after this “big drop” that MSM highlights, a Canadian worker would still need to dedicate half of their salary to their landlord.
Despite the still very real affordability crisis, major media outlets have pushed stories about “low” housing prices. Some claim “it’s a renters market,” while others lament “the slow real-estate market.”
In May, the CBC reported: “If you’re looking for a rental in Toronto or even an upgrade to a bigger space—now’s not a bad time to shop around.” Their point was that renters could pay $2,300 a month instead of $2,400. CBC even argued these slightly lower rents gave tenants “greater negotiating power” in a “favourable market for renters.”
By early July, CBC went back on its words. It published a piece stating the obvious: “Rents easing across most major markets, but many tenants not feeling relief.” No surprise here, because when rent still eats half your paycheck, “relief” is hard to feel.
While CBC tried to spin a slight drop in costs as a win for renters, Financial Post and CTV openly fretted about housing market stagnation.
Financial Post, citing a senior economist at BMO, said the housing market remains stagnant due to “subdued sales activity, solid new listings flow and falling prices.” By mid-July, FP claimed the small rise in June home sales came from “sellers backing down on seeking prices reminiscent of the hot housing days of 2022.” The average home price in 2022 was over $873,000. Speculators, bankers, and real-estate tycoons are simply waiting for the market to “fully rebound.”
CTV framed the cooling market as “wrecking havoc” for developers. Taking their cue from real-estate market consulting firm Urbination, CTV said: “The market has entered a phase of the downturn that is really starting to wreak havoc. Project cancellations are mounting, construction starts are collapsing, jobs are being lost, buyers are losing a lot of money, and developers are facing difficulties with closings.”
This “havoc” includes cancellations of new housing starts. Of course, the loss of construction jobs and housing projects getting canned are very real issues, but CTV neglects to mention that these cancelled projects are mostly luxury condos built for speculation, not affordable housing. This is one more consequence of the financialization of housing.
The Globe and Mail also joined the coverage, linking slightly lower rents to immigration caps set by the Trudeau government in 2024. Lower demand has nudged rents down across the country, but they remain high. MSM is quick to correlate the cost of rent with immigration, but rarely points out the correlation of housing prices with speculation by REITs and major financial institutions. According to the Canadian Human Rights Commission, these institutions are gaining “growing dominance in the housing sector.” Financialization of housing has become so widespread, that the Algoma Community Legal Clinic noted average rent increasing by 20% as corporate landlords began buying homes in Sault Ste. Marie.
When reporting on the housing crisis, mainstream media speaks to market factors like supply and demand, the trade war with the U.S., and the overall shape of the economy. But never do they report on who benefits from the crisis, how the financialization of housing came to be, nor how it affects the average Canadians. Instead, the news cycle fills with stories about “renters markets” and the supposed pain a cooler market causes for the financiers who keep prices high.