Canada Mortgage and Housing Corporation lowers expectations for the pace of home construction

By Ephraim Vecina
Canadian Mortgage Professional Magazine
September 18, 2023
Category: Finance & Economics
Region: Canada

Taking current trends into account, Canada Mortgage and Housing Corporation has markedly lowered its estimate for how many new homes will be built across the country by 2030. “Last year, we projected that, by 2030, there would be 18.6 million housing units in Canada,” CMHC said in its latest report. “Now, we project 18.2 million units (compared to our estimate of 16.5 million existing units in 2022).” A major driver of this decline is the ongoing shortfall in housing construction. “Materials have gotten more expensive, labour is in short supply, and it’s hard to get financing for construction,” CMHC said. …CMHC stressed that the pace of new construction will almost certainly vary across regions. …“As a result, our lower estimate for growth in household income has a disproportionate lowering effect on housing demand in Ontario,” CMHC said.

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