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CMHC says Canada needs 3.5 million more homes than expected

A “radical transformation” of the housing sector is called for

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The projected construction of new homes by 2030 will not be enough to solve Canada’s supply and affordability problems, the Canada Mortgage and Housing Corporation (CMHC) said in a report Thursday.

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In May, CMHC identified supply as “the biggest problem affecting housing affordability” in Canada, and that new housing starts have struggled to keep up with population growth in some of Canada’s major cities.

To “restore affordability, Canada will need an additional 3.5 million units,” on top of those already under construction, CHMC said Thursday.

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“Canada’s approach to housing supply needs to be rethought and done differently,” said Aled ab Iorwerth, CMHC’s deputy chief economist.

“There needs to be a radical transformation of the housing sector, including government policies and processes, and an ‘all on deck’ approach to increasing housing supply to meet demand.”

CMHC’s latest report predicts that if current rates of new construction continue, housing stock will grow by 2.3 million units by 2030, to nearly 19 million housing units by 2030. 2030.

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However, that number “is expected to climb to more than 22 million…to achieve affordability for everyone living in Canada,” the report says.

The housing authority said two-thirds of the housing supply shortfall was in Ontario and British Columbia, provinces that have seen a sharp decline in affordability in recent years.

Additional supply would also be needed in Quebec, as affordability in the province has declined markedly in recent years.

“Over the past 20 years in Canada, housing supply has failed to meet demand, particularly in some of the country’s large urban areas, resulting in a loss of affordability,” CMHC said. .

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