This is the moment to fix the mismatch in Canada’s housing supply

Move away from “sprawl and tall” and start building for end users, not investors. Focus on not-for-profit housing, and harness the savings.

Solving Canada’s housing affordability crisis requires addressing the mismatch of housing supply and need.

For too long, we have focused on building “sprawl and tall” – expensive houses further afield and small, costly units in high-rise buildings while neglecting critical segments of our housing system needed to accommodate a range of household incomes and sizes.

Here is one stark mismatch: This year, the average vacancy rate for rental housing across the country reached its lowest level since 1988, the year the Canada Mortgage and Housing Corp. began keeping track.

Part of the problem is the development financing system, which requires developers to pre-sell most of their units to secure financing from lenders. When interest rates are low and real-estate prices keep ticking up, investor demand is high. Since at least 2018, the GTA has boasted more cranes in the sky than any other city in North America.

This is the moment to fix the mismatch in Canada’s housing supply – Policy Options, July 11, 2024