The passing of Leo Gerard marks the end of an era in Canada’s labour movement — and while it may not seem obvious at first, his legacy continues to echo through our nation’s housing landscape. Gerard, a fierce advocate for workers’ rights and former president of the United Steelworkers, helped secure better wages and job security for thousands of Canadians. This labour-driven stability has long been a cornerstone of Canada’s real estate health, particularly in industrial cities. As homeowners and buyers navigate today’s uncertain market, Gerard’s work reminds us just how interconnected jobs and mortgages really are.
Labour Strength and Home Price Growth Go Hand in Hand
When Gerard rose through the ranks of the United Steelworkers, he championed the kind of working conditions that allowed blue-collar Canadians to aspire to homeownership. Strong unions like the Steelworkers helped stabilize incomes in communities like Sudbury, Hamilton, and Sault Ste. Marie — cities whose residential real estate boomed in past decades because factory and mill workers could afford homes, raise families, and invest in their communities.
Today, that relationship between job security and housing affordability is more fragile. As jobs become more precarious and wages struggle to keep up with inflation, the dream of owning a home is fading for many Canadians. The Canadian Real Estate Association (CREA) reports the national average home price in April 2024 was over $700,000, up more than 6% year-over-year. Without income security — something Gerard fought for throughout his life — many families can’t qualify for a mortgage, let alone manage rising payments.
Interest Rates and Worker Stability: A Delicate Balance
On one hand, higher interest rates are helping to cool red-hot real estate prices. On the other, they’re making it harder for average Canadians to qualify for financing. The Bank of Canada’s key overnight rate has hovered around 5% throughout early 2024, with no immediate sign of deep cuts. For homeowners who are seeing their fixed terms come to an end, getting a handle on refinancing options before rates go higher can be critical.
What does this have to do with Gerard’s legacy? Plenty. Affordability isn’t just about home prices — it’s about income stability. Gerard fought to give workers reliable wages and pensions, which translated into improved eligibility when applying for mortgages. Without strong job foundations, especially in regional communities, higher interest rates will disproportionately impact households already teetering on the edge. Gerard reminded us that secure work feeds secure homes.
Homeownership in Resource-Based Communities: A Vanishing Opportunity?
Cities like Sudbury, where Gerard grew up and maintained deep ties, have long been pillars of Canada’s resource economy. Mining and steel cities offered affordable properties and reliable employment, making them a gateway to homeownership for younger Canadians and immigrant families. But over time, automation, offshoring, and weakened labour protections have chipped away at those dreams.
Housing demand in these towns persists, but not without obstacles. Buyers still face stricter stress tests, fluctuating interest rates, and reduced access to high-ratio mortgages. Factor in unstable employment, and banks grow more hesitant to lend. For those considering a home in smaller cities, understanding alternative financing routes — such as a private mortgage — might be worth exploring, especially when employment isn’t traditional or salaried.
Gerard believed in dignified work leading to dignified living. That belief built generations of middle-class homeowners across Canada. As we transition into a new housing economy mixed with volatility and innovation, remembering that simple connection — secure jobs create secure neighbourhoods — could influence how we build policies and lending practices going forward.
The Future: Can Policies Align With Gerard’s Vision?
The current federal housing strategy includes billions earmarked for boosting supply and improving affordability. But as economists and community leaders warn, new units don’t guarantee accessibility if average Canadians still struggle with financing. The Canadian Mortgage and Housing Corporation (CMHC) projects that Canada needs to build 5.8 million new homes by 2030 to restore affordability—but without incomes keeping pace, many won’t afford the keys.
Homeowners over 50 may be rethinking how to fund retirement given climbing home equity but rising costs of living. For some, a reverse mortgage may be a smart way to tap property value without selling. Others facing variable-rate mortgage renewals are looking at fixed products to regain fee visibility and predictability — something Gerard fought tirelessly for in collective bargaining agreements.
We need actionable plans that merge home construction with stable employment and accessible borrowing tools. Policies that align more closely with the ideals of labour leaders like Gerard — fairness, equity, and opportunity — will shape a more resilient housing future.
Conclusion: Building on Gerard’s Foundation
Leo Gerard’s influence may have begun on the shop floors of northern Ontario, but his legacy continues to ripple into the homes we buy and the mortgages we choose. He spent his life advocating for the very security that underpins our country’s housing culture. If you’re navigating today’s complex market, there’s power in having the right tools and advice at your disposal.
Whether you’re considering a new mortgage, assessing your refinancing options, or just trying to make sense of interest rate impacts, Unrate is here to help you make empowered decisions in a market that’s constantly shifting.
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