Canada would need to double its current housing output to bring affordability back down to 2019 levels, according to the Canada Mortgage and Housing Corporation.
The Crown corporation published its fall housing supply report on Thursday, which found Canada to be coming up short on annual housing by hundreds of thousands of homes, meaning the supply gap is likely here to stay for years to come.
Canada is currently on track to build about 231,000 homes per year until 2036; it would require building between 417,000 and 469,000 homes annually in order to narrow the supply gap for home prices to return to pre-pandemic levels.
“Meeting future housing demand will depend on the pace of new construction. Construction costs remain high. Presale financing conditions remain difficult for some projects. Weak condominium market conditions continue to make developers cautious about launching new projects,” reads the report.
