Canada’s housing crisis has a price tag – and it’s a big one.
According to the Canadian Mortgage and Housing Corporation (CMHC), the country needs 3.5 million additional homes by 2030 to restore affordability.
But financing that level of construction will require an extra $331 billion to $364 billion per year from 2025 to 2030, says a new report from the Fraser Institute.
The report questions Canada’s ability to raise the necessary funds domestically, and highlights foreign investment as a potential solution. However, policies like the federal foreign homebuyer ban – originally introduced as a measure to cool the market – may now be working against funding efforts. The report stresses that significant policy reforms are needed to make Canada more attractive to real estate investors.
Meanwhile, housing starts in Ontario dropped by 16% in 2024, according to CMHC data, putting the province well behind its goal of 150,000 new homes per year. And with a possible US-Canada trade war on the horizon, the cost of building materials could rise, adding another hurdle to construction efforts.
The road to affordability is long, and for now, rental demand will keep property managers busy.
More construction headlines
Investment group working to boost rental supply in northern Ontario – CTV News
Could mass timber construction help ease the housing crisis? – PayProp blog
Construction industry bracing for impact from upcoming US & Canadian tariffs – Ontario Construction News
