Statistics Canada's latest tranche of census data shows more than 805,600 homes in the country are not suitable for the number of people living there.
The federal data agency deems homes ``not suitable'' when three or more people are occupying one bedroom.
It says more than 630,800 homes have a one-bedroom shortfall based on the number of occupants, while about 129,200 are short by two bedrooms.
Another 45,500 homes are short three or more bedrooms.
Statistics Canada also says almost 1.5 million Canadian households lived in ``core housing need'' in 2021, which it defined as living in an unsuitable, inadequate or unaffordable dwelling and not being able to afford alternative housing.
It calculated that the core housing need rate fell from 12.7 per cent in 2016 to 10.1 per cent in 2021, which was largely triggered by gains in household incomes and housing affordability.