CMHC Urges Structural Overhaul to Meet Canada Urgent Housing Supply Needs
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Canada’s housing market is currently facing a significant supply shortfall, and according to the Canada Mortgage and Housing Corp (CMHC), rebuilding affordability to 2019 levels will require building between 430,000 and 480,000 new homes per year over the next decade—a near doubling of the current pace. CMHC Deputy Chief Economist Aled ab Iorwerth stresses that achieving this ambitious target will demand a modernized and expanded workforce, increased private sector investment, streamlined regulations, quicker permitting, reduced development costs, and broader adoption of innovative construction technologies to boost productivity.
The supply-demand gap is particularly acute in Ontario, British Columbia, and Nova Scotia—regions that saw significant price increases during and after the pandemic. mong major cities, Montréal shows the largest gap for affordability, while Toronto must ramp up homebuilding by about 70% over the next decade to begin easing pressure on homeownership costs, especially for ownership options aligned with local incomes.
TD Bank economists echo CMHC’s warnings, flagging low productivity in construction and an aging workforce as structural barriers to scaling up. Without addressing these deep-seated issues—by innovating techniques, boosting labour output, and fostering better sector investment—the necessary surge in housing starts risks falling short, perpetuating long-term affordability challenges.
Read the full article on: REAL ESTATE MAGAZINE
