Canada is still grappling with a severe housing shortage, needing an additional 3.5 million housing units by 2030, according to a recent report by the Canada Mortgage and Housing Corporation (CMHC). The report serves as an update to a previous study released in June 2022 on housing shortages and affordability.
CMHC’s Deputy Chief Economist, Aled ab Iorwerth, emphasized the urgency of the situation, stating, “We need to get a lot of stuff built.” The ongoing “housing supply gap” remains largely unchanged, but it has shifted in size across provinces. For instance, Ontario is expected to experience lower household income growth, leading to reduced housing demand. Conversely, Quebec and Alberta are anticipated to see increased demand.
When asked if constructing an additional 3.5 million housing units by 2030 is feasible, Iorwerth responded, “No, but it’s the right question to ask.” He acknowledged that addressing housing affordability is a complex challenge requiring substantial time, effort, policy innovation, and collaboration with the business sector.
Housing Minister Sean Fraser also commented on the CMHC report, expressing his goal to address the housing crisis. While he acknowledged the difficulty of achieving such a goal, he stressed the importance of not “stopping short of solving Canada’s national housing crisis.”
The CMHC report highlights that various factors drive housing demand, including immigration, rising incomes, and low-interest rates. However, the primary challenge lies in the insufficient supply response, which has persisted for years. To meet the growing demand and improve housing affordability, the supply of housing must increase substantially.
Prime Minister Justin Trudeau recently announced a $74 million housing deal with London, Ontario, aimed at fast-tracking the construction of over 2,000 housing units in the next three years. This initiative is part of the federal Housing Accelerator Fund, which aims to create 100,000 new housing units by encouraging municipalities to streamline zoning and permit systems for residential construction.
Trudeau emphasized the critical need to address the housing shortage, prevent soaring home prices, and ensure that housing remains affordable, contrasting with other major global cities where housing has become unaffordable for many residents.