Affordability, cost-of-living and housing much more important voting factors for younger Canadians than Trump
The threat posed to Canada by US president Donald Trump’s tariff war and repeated talk of annexation loomed large during April’s federal election, swallowing other issues as the main campaign talking point and emerging as a key reason for the Liberals’ victory on Monday.
But the election also exposed the growing chasm between older and younger Canadians in the housing market, with voters aged between 18 and 34 much less likely to view the Trump factor as the most important consideration at the polls.
Instead, those voters viewed affordability and the cost-of-living as their top election issues – followed closely by housing – while just 18% saw the Canada-US relationship as the main reason behind their vote, according to polling conducted by Ipsos for Global News.
That’s compared with a full 43% of Canadians over the age of 55 who viewed Trump as the top issue, even though affordability and cost-of-living considerations actually outstripped the US relationship by 38% to 23% as the key election factor among all Canadians.
That stark divide underscores the size of the challenge facing policymakers to restore housing affordability and address the frustrations of younger voters frozen out of the housing and mortgage markets.
Last October, a Scotiabank poll showed 55% of Millennials and 58% of Gen Z Canadians viewed purchasing a home as unattainable, even though more than half of Canadians in the 18-43 age bracket hope to buy at some point in the next five years.
Some of those hopeful buyers postponed purchasing plans, according to that poll, as a result of financing strains caused by economic turbulence – and affordability concerns have jumped by 12% across all age categories.
A new report by RBC Economics suggests Canada’s housing sector is facing intensified strain amid a backdrop of economic uncertainty, subdued growth, and resource-heavy government spending.
— Canadian Mortgage Professional Magazine (@CMPmagazine) April 30, 2025
\https://t.co/r7Gu2TgXKy
Are better times ahead for first-time homebuyers?
Max Singh (pictured top), a Calgary-based broker with TMG The Mortgage Group, told Canadian Mortgage Professional the jury was still out on whether the government would move quickly or effectively enough to close the affordability gap between older and younger Canadians.
“The election outcome signals continued uncertainty in housing policy, especially for first-time homebuyers and middle-income Canadians struggling with affordability,” he said.
“While the market has shown resilience, the lack of decisive policy shifts during the campaign leaves many questions unanswered about how the government intends to stabilize rates, increase supply, or address the growing gap between income and home prices. The mortgage industry will need clarity and consistency in policy to help Canadians plan confidently for homeownership.”
How the government can ease affordability woes for new buyers
Focusing on buyers entering the market for the first time and easing their path to homeownership should be a core focus of Mark Carney’s new administration, Singh said, particularly by boosting construction of purpose-built rentals and expanding entry-level ownership options.
Easing the supply crisis, meanwhile, could be achievable by streamlining the approval process for new developments and providing incentives to builders.
Skyrocketing home prices and a jump in mortgage rates since 2022 are among the main factors preventing first-time buyers from entering the housing market, Singh said – and he believes it may be time to look at adjusting the current stress test on home purchases.
Currently, borrowers are required to prove they could afford a mortgage rate of 5.25% or two percentage points above their current rate, whichever is higher. But while that proved an effective way of helping borrowers manage the jump in rates seen in recent years, many brokers view it as excessive and unnecessary in today’s market.
“Reviewing the stress test criteria to better reflect current rate environments and borrower risk profiles would be a welcome step, especially for renewals and well-qualified buyers,” Singh said.
Ultimately, Canadians are looking for “bold, actionable solutions – not just promises,” he added.
“Housing affordability is now a top-tier economic and social issue. The government has a real opportunity to collaborate with industry stakeholders – brokers, lenders, builders and municipalities – to create more accessible pathways to homeownership. The mortgage industry is ready to be part of that solution.”
Make sure to get all the latest news to your inbox on Canada’s mortgage and housing markets by signing up for our free daily newsletter here.
