Housing affordability will worsen unless we act quickly: CMHC chief economist
TORONTO – Canada’s federal housing agency fears affordability will worsen unless the country takes swift action on supply challenges and other housing measures.
The Canada Mortgage and Housing Corporation sounded alarm bells last summer when it estimated that the country would need to build 3.5 million more homes by 2030 than it is on track to achieve any semblance of affordability.
While 271,000 homes were built two years ago and about 260,000 last year, chief economist Bob Dugan now predicts between 210,000 and 220,000 will be built this year.
Dugan believes this is a sign that the country is moving in the wrong direction and he is not optimistic that the country is on track to double the rate of housing construction.
Construction efforts were constrained by labor shortages, higher interest rates and material costs, along with zoning regulations and NIMBYism.
Dugan admits his outlook isn’t rosy, but on the upside, says moments of crisis can lead to innovation, which could positively change the current housing forecast.
This report from The Canadian Press was first published on June 16, 2023.
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