Joe Fenik

Key Takeaways

• Nearly 1 million homes across Canada needed major repairs in 2021, or 6.1% of all homes.
• Indigenous and subsidized housing had major repair rates above the national average.
• Homes needing major repairs were much more likely to have mould, mildew and pests.
• We often think about housing supply in terms of the homes we need to build. But we should also think about the homes we cannot afford to lose.

As of 2021, nearly 1 million homes across the country already required major repairs, putting existing housing supply at risk at a time when Canada needs it most.

This doesn’t mean Canada's housing stock has been neglected. In fact, overall repair rates have remained relatively stable since 2016. But because the housing stock kept growing over the last several decades, the number of housing units requiring major repair has also grown.

Housing maintenance is about more than buildings and investment. It ensures housing supply is readily available and remains habitable. It can also protect people's health. When maintenance is deferred, the impacts are most likely to be felt by people already facing the greatest housing challenges.

Housing conditions aren’t equal across Canada. Indigenous people and those living in subsidized housing are more likely to live in homes requiring major repairs. This can reduce housing supply and contribute to poorer housing conditions that can affect their health.

Continued investment in maintenance and renewal remains important if Canada wants to maintain enough housing to meet people’s needs and that keep it affordable.

Housing supply has struggled to keep pace with demand across Canada. In response, many cities are introducing zoning changes to support small-scale infill, speed up approvals and encourage more housing. This CMHC analysis finds that small-scale infill is becoming a more important source of housing supply. How much it adds will depend on zoning changes and financial viability.

Key Findings

• Small-scale infill is increasing as a share of housing starts: Small-scale infill is now estimated to account for 1 out of every 10 housing starts in Canada in 2025. While most new housing is still built through larger developments, small-scale infill is playing a growing role.
• Zoning changes can produce upward shifts in supply: Vancouver, Edmonton and Toronto have eased zoning rules at scale. Between 2023 and 2025, the share of new housing coming from small-scale infill in these cities rose from 4.7% to 16.1%. While many factors shape housing construction, this increase suggests zoning reforms have contributed.
• Broader market and development conditions still shape infill growth: Broader market and development conditions will still shape the growth of small-scale infill. Fees, approval timelines, building rules and financing all affect whether projects can move forward.

The Bank of Canada today increased its target for the overnight rate by 25 basis points to 2.5%, with the Bank Rate at 2.75% and the deposit rate at 2.45%.

Since the July Monetary Policy Report, global economic activity has remained resilient, despite higher energy prices. In the United States, the economy continues to grow at a robust pace, supported by consumer spending and AI-related investment. Growth in the euro area has been resilient and broad-based. After slowing in the second quarter, Chinese growth rebounded in the third quarter, owing to strength in exports and a pickup in fiscal spending. With persistently elevated oil prices and refinery margins, inflation has risen in most countries. 

Given the ongoing resilience of the global economy, the Bank has revised up global GDP growth slightly to 3.1% in 2026, while growth in 2027 and 2028 remains unchanged from the July projection at 3.2%.

Global financial conditions have tightened since July. Advanced economy sovereign bond yields are higher. Equity and credit markets have been volatile due to uncertainty about the outlook for the AI sector. The Canadian dollar had weakened somewhat on US-dollar strength but has since recovered to around 71 cents – the same as assumed in the July Report.