Canada’s real estate crisis needs private sector help: CMHC

Ottawa –

Governments alone cannot solve the country’s housing affordability problem, according to a new report from the Mortgage and Housing Corporation of Canada.

The scale of the problem is so great that the private sector needs to get involved, says a report by Aled ab Iorwerth, CMHC’s deputy chief economist.

The National Housing Authority says public solutions like rent subsidies and more public housing can help, but more needs to be done.

In a June report on housing shortages and what the CMHC called an “affordability crisis,” the agency said 3.5 million more homes would be needed to achieve affordability by 2030. I’m guessing.

“To deal with this emergency, more private sector investment is needed to build more supply in the housing market, especially in the rental sector,” said ab Iorwerth in the report.

The report found that government incentives could be used by companies to build additional housing, making rental supply more attractive, especially in fast-growing markets such as Toronto, Vancouver, Montreal, Victoria and Halifax. I point out that you can.

Housing affordability is the hardest for low-income Canadians, but the report notes that prices are also out of reach for high-income Canadians.

“The housing system is interconnected, so solving Canada’s affordability problem will require a set of policies that affect the entire system.”

The real estate market has cooled and house prices have fallen this year, but are straying from record levels early in the pandemic.

The report says that as Canada seeks to attract more immigrants, the need for more housing will be even greater.

This report by the Canadian Press was first published on November 28, 2022.