Canada can look to international examples where consolidating and scaling the housing system have helped sustain housing supply and affordability.

According to a 2016 McKinsey report, the construction industry remains one of the least digitized sectors. Out of 22 industries reviewed, construction ranked second to last – just ahead of…hunting and agriculture. Nearly a decade later, little progress has been made in how we build homes.

Canada’s housing sector feels stuck in an everlasting hunting-gathering era, resisting modernization. A large part of the solution to digitize our housing industry lies in scaling up to generate sufficient financial, human and technological resources to innovate.

Canada can learn from the Netherlands, which has achieved scale in the housing sector, including with not-for-profit affordable housing providers.

In 2024, Canada had 40,349 businesses that employed workers in the residential construction industry. Of these, only 6 businesses had more than 500 employees. The majority (69.5%) were micro businesses with just 1 to 4 employees.

The same trend applies to the real estate lease management industry. While specific data for residential leasing is not available through the Canadian Industry Statistics, broader data for the real estate leasing and management sector tell a clear story: Of the 30,099 businesses that employ workers, 81.4% had less than 5 employees. By comparison, 59.2% of businesses across the entire economy fall into the micro-business category.

https://www.cmhc-schl.gc.ca/observer/2025/unlocking-housing-supply-why-scale-really-matters