CMHC Warns Slowing Construction Threatens Affordability Gains
CMHC warns that recent improvements in housing affordability could be reversed if new construction continues to slow. Canada needs between 417,000 and 469,000 housing starts annually to restore affordability to pre-pandemic levels by 2036.
Rental housing now accounts for most new construction in Canada’s major markets outside Calgary and Edmonton. This additional supply is moving rental markets toward more balanced conditions, but weakening ownership construction could create another supply shortage when demand strengthens.
In Halifax, recent record construction has helped ease rental market conditions, but affordability challenges remain significant. Population growth has continued to outpace new housing supply, particularly in the ownership market. CMHC cautions that allowing construction to slow during a softer market risks leaving Halifax further behind when demand returns.
Read CMHC Media Release