Bob McDonald

From CMHC

Canada faces a housing affordability challenge. For many years, housing prices and rents in Vancouver and Toronto attracted attention from all over the world. Over time, these increases came to burden many Canadians and their children. Low-income and some middle-class households struggle to even find a place to live, let alone at a price they can afford.

On a wider scale, the productivity of the Canadian economy suffers from unaffordable housing as the capacity to attract skilled workers is diminished and the young are deterred from staying in our largest cities partly because of the lack of attainable housing. And Canada’s enormous level of household debt creates a vulnerability in the event of a global economic crisis.

Preview of results

We find that housing starts need to double over the next decade. Compared to a projected rate of about 250,000 new housing units annually until 2035, Canada needs to increase housing starts to around 430,000 to 480,000 units per year to restore affordability (depending on parameters).

This can only be possible with:

• a significantly greater workforce
• more private-sector investment
• changes in technology and productivity such as more automation and modular construction

The need to increase housing supply remains critical.

https://www.cmhc-schl.gc.ca/professionals/housing-markets-data-and-research/housing-research/research-reports/accelerate-supply/canadas-housing-supply-shortages-a-new-framework