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As in most western countries, social housing programmes in Canada have recently been subjected to intensive review, and outright attack. Increased costs in the owner‐occupied sector, tighter private rental markets and cutbacks in social housing expenditures, have combined to widen the affordability gap and polarise the housing debate. This paper examines the arguments in that debate and outlines the diversification of social housing forms. It then speculates that future housing subsidies will be more closely targetted, sectorally blended, and likely smaller.