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Canada faces two intertwined crises: a housing affordability crunch and a climate challenge, with emissions from the housing sector declining too slowly to meet climate targets. Both issues are steadily undermining the country’s housing stock.

Home energy efficiency must be at the centre of public policy, both to meet climate commitments and to ease the single largest expense for most households over the long term.

Over the past twenty years, the average living space per person in Canada has increased by about 20 per cent, a significant trend that automatically increases the need for heating, cooling and maintenance. Energy efficiency in residential housing stock is improving in all provinces, but growing homes partially offsets these gains. This means some Canadians are living in larger, better-equipped spaces, while a growing number of others struggle to afford adequate housing.

At the same time, the energy transition requires a rapid reduction in emissions from the residential sector, which account for 12 per cent of national emissions. Most of these emissions come from the use of natural gas for heating. Decarbonizing the residential building stock—through electrification, improving the thermal performance of buildings, and integrating renewable energy—is a major driver for reducing the country’s carbon footprint.

This raises a key question: how can housing be made more affordable while........

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