Canada’s current pace of homebuilding is facing a 3.5 million home gap by 2030, well below affordable housing standards, according to a new report.
The Canada Mortgage and Housing Corporation (CMHC) released its latest analysis on Canada’s housing stock challenges on Thursday.
The agency predicts that Canada will add another 2.1 million homes between 2021 and 2030, with 19 million homes nationwide.
But that wouldn’t be enough units for all Canadians to make their homes affordable, CMHC said.
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It predicts that Canada will need to far exceed 22 million units by that time to put an affordable roof on the heads of its growing population.
“Canada’s approach to housing supply needs to be rethought,” the report said.
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“There has been increasing evidence over the years that housing supply systems are broken in many parts of Canada.”
However, CMHC states that supply is only one factor influencing affordability and that increasing the pace of construction cannot solve the problem alone... Other inputs not covered in the report include the lifespan of government policies that affect demand and the tendency to work from home after a pandemic.
According to the report, two-thirds of the housing gap will be felt in Ontario and British Columbia. Quebec is also said to need to increase its supply over the next decade.
CMHC also notes that launching construction is not the only way to boost supply. As the proportion of elderly households is increasing in Canada, adopting multi-generational housing will also ease demand pressure.
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Canada will run short of 3.5 million homes by 2030 at current building pace: CMHC
Source link Canada will run short of 3.5 million homes by 2030 at current building pace: CMHC