Canada’s housing crisis is reaching a critical level due to the high population growth, and the country needs over 5 million new homes by 2030. The current building rate must triple to meet the demand, but housing starts are decreasing, which makes this problem severe. Developers face bureaucratic hurdles such as slow approvals and regulatory changes, and the duration of development approvals has been on the rise. Canada must act now to address these challenges and create a conducive environment for developers.
Inflationary pressures and construction costs have stabilized in Canada, but interest rate hikes have presented significant challenges to housing construction in Toronto, a high-cost market. High housing prices have shifted migration and construction activity to more affordable cities like Calgary, which is likely to experience cost increases due to in-migration of people.
High-rise residential costs in Toronto have slightly decreased, but this decline may be short-lived due to housing shortages and could escalate by 10% by 2026. To solve this housing crisis, Canada must act fast to provide a conducive environment for developers and streamline the housing approval process.
Sources : Altus group and CMHC
