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Canada’s Spring Economic Update: What It Means for Housing and Homelessness

May 1, 2026 - 12:44 pm / News

The federal government released its Spring EconomicÌýUpdateÌýthis week,Ìýfocusing on their plan to build Canada 91Ó°ÊÓ â€™s economy.ÌýAgainst the backdrop of heightened unaffordability, ongoing housing pressures, and a precarious global economic environment, this Spring Economic UpdateÌýidentifiesÌýhousing as a key pillar of the government 91Ó°ÊÓ â€™s approach to support Canadians.ÌýÌý

On housing and homelessness, theÌýupdate included:ÌýÌý

  • AÌý$150 million top up to theÌýUnsheltered Homelessness and Encampments Initiative.Ìý
  • AllocationÌýof theÌýpreviously-promisedÌýfundingÌýurban, rural,Ìýand northern Indigenous housing, forÌý$2.8 billionÌýover five years.ÌýÌý
  • ProvidingÌýflexibilityÌýthrough bilateral housing agreements with territories to ensure survivors of gender-based violence can access a safe place to live.
  • AcceleratingÌýfunding for the ApartmentÌýConstruction LoanÌýProgram toÌýbuild more rentalÌýhousing.
  • Allocation ofÌýfunding forÌýtheÌýnew Canada Groceries and Essentials Benefit (CGEB) to help more than 12 million Canadians afford day-today essentials.
  • AÌýnumber ofÌýother housing measuresÌýfocused onÌýhousingÌýdevelopment andÌýconstructionÌýandÌýhome ownership.ÌýÌý

TheÌýSpring EconomicÌýUpdate alsoÌýindicatesÌýthat the federal government willÌýundertake aÌýconsultation process toÌý‘modernize tax rulesÌýfor charities.’ÌýCAEHÌýwillÌýmonitor,Ìýengage, and keepÌýthe sectorÌýup-to-dateÌýin this processÌýas itÌýmovesÌýahead.

What This Means for People Experiencing HomelessnessÌý

While theÌýSpring Economic UpdateÌýlays out thatÌýhousingÌýprices are easing broadlyÌýacross the country,Ìýlow-income households continue toÌýbear the brunt ofÌýhousing unaffordabilityÌýandÌýthe cost-of-livingÌýcrisis.ÌýFor Canadians livingÌýin deepÌýpoverty,Ìýhousing affordabilityÌý¾±²õ²Ô’tÌýimproving andÌýcost-of-living pressures are worsening.ÌýLow-income households,ÌýthoseÌýmost atÌýrisk ofÌýhomelessness,Ìýspend most of theirÌýbudget onÌýfood,Ìýrent, andÌýenergyÌý– all costs thatÌýcontinue toÌýrapidly rise andÌýare outpacingÌýwageÌýgrowth and stagnantÌýincomeÌýsupport rates.ÌýÌý

TheÌýnewÌýgroceries and essentialsÌýbenefit is a recognition that Canadians areÌýstrugglingÌýto make ends meetÌýand the top-up to the UnshelteredÌýHomelessness and EncampmentsÌýInitiativeÌýacknowledgesÌýtheÌýgrowing homelessness in ourÌýcommunities.ÌýWhileÌýthese investmentsÌýare important signals,Ìýwe’llÌýbe ramping up our advocacyÌýtoÌýexpandÌýinvestments in housingÌýand homelessness thatÌýreachÌýthose inÌýgreatest needÌý– andÌýget theÌýgovernmentÌýfocusedÌýonÌýsolving theÌýproblem,Ìýnot managing it.ÌýÌý

What weÌýDidn’tÌýseeÌýin the SpringÌýEconomic UpdateÌý

Over the months leading up to the Spring Economic Update, the Canadian Alliance to End Homelessness (CAEH) has been calling for the federal government to negotiate a Canada Housing Accord to bring all levels of government together around clear goals, timelines, and responsibilities to solve the housing crisis. The investments made in the Spring Economic Update would be strengthened by an Accord, ensuring that every investment dollar goes further through collaboration and clear objectives from all levels of government.

While theÌýSpring Economic UpdateÌý»å¾±»å²Ô’tÌýinclude a mention of the government 91Ó°ÊÓ â€™s upcomingÌýrenewalÌýof theÌýNational Housing Strategy,Ìýwe expect the federal government to begin consultation on the new National Housing StrategyÌýinÌýthe coming weeks.Ìý

WhereÌýwe goÌýFromÌýHere andÌýWhatÌýCanada Needs Going into Budget 2026Ìý

As a next step,Ìýwe’llÌýcontinueÌýto work withÌýthe government to support the implementation ofÌýthe investments in theÌýSpring EconomicÌýUpdate. With theÌýfunding forÌýurban,Ìýrural, and northern Indigenous housing,Ìýwe’llÌýbe working to ensure the government takes a trueÌýby-IndigenousÌýfor-Indigenous approachÌýandÌýwillÌýcontinueÌýtoÌýpushÌýthem toÌýdeliver this fundingÌýwithout anyÌýfurther delays.ÌýÌý

ThisÌýis a bigÌýyear for housing and homelessness.ÌýWith Canada 91Ó°ÊÓ â€™s National Housing Strategy (NHS) coming up for renewal in 2027-28, you will hear from us lots on what we want to see in the next strategy and what the government needs to change in its approach to meaningfully reduce homelessness and improve housing affordability in its next strategy.ÌýWe have been calling for a new NHS that is focused on outcomes including reductions in homelessness.ÌýLook out for more details in the coming weeks on CAEH 91Ó°ÊÓ â€™s recommendations for the next federal budget and our recommendations for the future of the National Housing Strategy.Ìý

We’llÌýbe continuing to push for aÌýCanadaÌýHousing Accord, we willÌýbe launching a newÌýcampaignÌýon theÌýCanadaÌýHousing Benefit, andÌýwill beÌýdeveloping recommendations for a federal Homelessness Strategy and improvements to Reaching HomeÌý

WhatÌýYouÌýCan DoÌý

You can help turn this into a realityÌýby callingÌýyour local MP,Ìýsharing your story, andÌýdemanding a CanadaÌýHousing Accord.ÌýCall now using this Ìý

For media inquiries,Ìýcontact:Ìýmedia@caeh.ca