Housing affordability, labor productivity, and internet access cost are three of only a few areas in which Canada performs worst among developed countries in the world. This is mainly due to concentrated urban overpopulation in certain urban centres, leaving most other feasible geographic areas underutilized. This is despite the fact that with a vast and resource-rich landmass, the country has untapped potential for decentralized growth, which could improve affordability, efficiency, and economic equity nationwide.  Regional development is the only solution to these problems.

1. Housing Affordability

Canada faces one of the worst housing affordability crises among developed countries in the world:

• It ranks as the eighth least affordable housing market globally.
• Vancouver is the third worst city worldwide, with homes priced over 12 times the median household income. Major cities like Toronto, Montreal, and Calgary are also severely affected.
• The federal government’s withdrawal from affordable housing investment since the 1980s has worsened the problem.
• Many young adults are locked out of homeownership, and families spend disproportionate income just on shelter.

2. Labor Productivity

Canada’s declining productivity poses a long-term threat to its economic competitiveness:

• It ranks 18th globally for GDP per hour worked, producing only 42.5% of Ireland’s output per hour.
• Productivity growth has stalled since 2019, making Canada one of the worst-performing advanced economies.
• The OECD forecasts Canada to be the lowest-performing economy among 38 advanced nations over the next four decades.
• Construction sector productivity is at a near 30-year low.
• Canadians must work longer hours than peers in other developed nations to achieve the same output.

3. Internet and IT Technology Costs

Canada lags behind in digital infrastructure affordability and competitiveness:

• It ranks 144th globally for internet affordability, with average monthly costs around US$65.
• High prices stem from limited competition and large geographic distances. Mobile data costs are among the highest globally, with Canada ranking 62nd for affordability.
• The regulatory environment hampers small competitors, reinforcing the market dominance of a few large providers.
• These costs burden both households and businesses, limiting economic opportunities and innovation.