Canada continues to face a significant housing supply challenge as slower construction threatens to reverse recent improvements in affordability.
Canada Mortgage and Housing Corporation said in its latest Housing Supply Report that housing starts will need to increase substantially if affordability is to return to pre-pandemic levels over the next decade.
CMHC estimates that Canada would need between 417,000 and 469,000 housing starts annually to restore affordability to 2019 levels by 2036.
Housing conditions differ considerably across major Canadian cities.
The estimated supply gap has narrowed in Toronto and remained relatively stable in Vancouver, while Montreal and Ottawa face larger gaps. Calgary’s record pace of construction has helped narrow its shortage significantly.
Edmonton stands out among major Canadian markets as one of the most affordable and as a city without the same estimated housing supply gap.
The differences demonstrate that Canada’s housing challenge is not uniform. Population trends, construction costs, available land, local regulations and financing conditions all influence housing supply differently across provinces and cities.
For governments and the construction industry, maintaining a sustained pipeline of new housing remains one of the central challenges in improving affordability.
The coming years will test whether Canada can translate housing targets into enough completed homes to keep pace with long-term demand.