The Canada Mortgage and Housing Corporation (CMHC) has just issued a sobering warning to policymakers regarding the state of Canadian housing. Yet, governments do not appear to be getting the message, nor do they seem willing to take the necessary steps to address the crisis. In their Summer 2025 outlook, the CMHC forecasts that housing starts will fall to 220,000 units by 2027, a nearly 20 percent reduction from 2021’s levels, which exceeded 270,000 units. This forecast is 13,000 homes lower than in their February 2025 release and comes under the backdrop of a Liberal government that promised to “double Canada’s current rate of residential construction over the next decade to reach 500,000 homes per year.” The forecasted decline is almost entirely isolated to British Columbia and Ontario. …Demand from homebuyers has declined substantially, as a combination of a weak economy and the post-2021 rise in interest rates has made purchasing new homes unattractive.