Thank you very much, Mr. Chair.
I'm joining you today from Toronto, on the traditional territory of many nations, including the Mississaugas of the Credit, the Anishnabe, the Chippewa, the Haudenosaunee and the Wendat peoples, and now home to many first nations, Inuit and Métis peoples.
I am pleased to be here on behalf of Canada Mortgage and Housing Corporation. As Canada's national housing agency, we have 75 years of proven expertise across the housing system.
Housing affordability is our top concern. We've mobilized all our resources to address it. We're doing this because the current trend of escalating house prices is worse than at any time over the past 30 years. It hasn't slowed despite the economic uncertainty of the COVID‑19 pandemic. In fact, growth in house prices has accelerated over the past 18 months.
At the same time, according to our housing market assessment, the national housing market has now reached a very high degree of vulnerability. Escalating prices relative to incomes have made it more difficult to enter the home ownership market. It also means that home owners are burdened with record levels of mortgage debt.
Canadians now owe $1.72 for every dollar of disposable income the household has earned. This makes households more vulnerable to events that adversely affect their income. However, it's very important to point out that housing unaffordability isn't just a problem for homeowners. The high cost of residential real estate is also having a ripple effect in the rental markets, and those who are most affected are vulnerable populations.
Some 13% of Canadian households are in core housing need. This means that they're spending more than 30% of their income on housing or that they're living in housing that is inadequate or unsuitable. It's also very important to point out that on any given night, as many as 35,000 people across our country may be experiencing homelessness.
Why is this happening and what can we do about it?
Canada's housing system is complex and there are a number of reasons for the continued steep price escalation. However, it is CMHC's position that the main problem is supply not keeping pace with housing demand. Canada has the fastest population growth of any G7 nation, and our housing supply has not kept pace with this growth.
The answer seems quite simple: build more housing. That's what we're encouraging through the national housing strategy, but it's simply not enough. It's not money or investments alone that will fix the problem.
Other barriers that prevent housing supply from matching demand include inflexible development processes and long timelines at the local level, as well as Nimbyism in our neighbourhoods. The housing crisis calls for collaboration across all orders of government, as well as the non-profit and private sectors.
Working together to unlock supply barriers is what we'll be focusing on when we talk at an upcoming housing supply summit that CMHC is co-hosting with the Federation of Canadian Municipalities. We will also be releasing an in-depth report in June, which will use the latest economic data to assess how much housing supply will be needed in the coming years.
Thank you, Mr. Chair, for the committee's study of this very important issue. Housing unaffordability poses a significant economic risk to our country, and it threatens our collective vision of Canada as an inclusive country where everyone has a chance to thrive and prosper.
At this time, I will be very happy to take any questions you may have. Thank you.