Canada Faces Persistent Housing Shortfall as Construction Slows
Canada needs between 417,000 and 469,000 new homes annually through 2036 to restore pre-pandemic affordability, but current projections indicate only about 231,000 will be built each year. That trajectory would leave the country nearly 2.4 million homes short over the decade. High borrowing and construction costs, difficult presale financing and weak condominium demand are slowing development faster than housing demand, putting recent affordability gains at risk.
The supply gap narrowed slightly in Toronto and significantly in Calgary, remained unchanged in Vancouver and widened in Montreal and Ottawa. Edmonton is the only major Canadian market without a structural supply gap because construction has kept pace with population growth. With new development increasingly concentrated in rentals, declining condominium and ground-oriented construction could leave too few homeownership options when demand strengthens again.
Read on: Money.ca
