Canada needs to build up to 4.8 million homes over the next 10 years in order to restore affordability.
That is the key finding in a new report from the Canada Mortgage and Housing Corporation (CMHC) looking at the housing supply gap.
It finds that doubling the pace of housing construction over the next decade would restore affordability to pre-pandemic levels.
Between 430,000 and 480,000 are needed each year by 2035 — far beyond the projected rate of 245,000 to 250,000.
These estimates follow previous CMHC research showing the homebuilding industry in Canada currently has the potential capacity to build more than 400,000 new homes per year.
“Doubling the pace of housing construction in Canada is achievable, but not without a significantly larger and modernized workforce, more private investment, less regulation, fewer delays, and lower development costs,” said Aled ab Iorweth, deputy chief economist for CMHC.
“It will also require significant innovation in construction technology and growth in labour productivity. Systemic changes are essential if we are to double the pace of homebuilding in Canada.”
According to the report, the most significant housing supply gaps are in Ontario and Nova Scotia — which saw some of the fastest rising housing costs due to the pandemic — and British Columbia.
