In the delicate balance of supply and demand shaping Canada’s housing landscape, immigration is a significant factor influencing housing. Research from Loyalist Public Affairs inside TRREB’s 2024 Market Outlook and Year in Review Report highlights the current challenges and potential solutions.
Need for Comprehensive Planning
A recent report by the Canada Mortgage and Housing Corporation (CMHC) paints a stark picture, estimating that an additional 3.5 million homes are needed by 2030 to restore affordability. This highlights the urgent need for comprehensive planning and strategic interventions to bridge the housing supply gap.
“At the core of Canada’s housing crisis lies a fundamental mismatch between housing construction and demand. Canada’s housing crisis is primarily the result of our failure to build new housing at a rate that keeps pace with demand. This disconnect has fueled soaring housing prices and affordability woes,” said Dan Mader, Partner at Loyalist Public Affairs.
Multi-Faceted Approach to Support Newcomers
To address the housing challenges a multifaceted strategy is necessary, including initiatives to attract skilled immigrants and foster youth participation in the workforce. With an aging population comes aging skilled workers, and to build more housing, we need more skilled labourers. By harnessing the talents of immigrants and empowering the next generation, Canada can bolster its housing construction efforts.
Fostering a Resilient Housing Market
Creating harmony between immigration and housing supply is undoubtedly imperative for long-term economic resilience. Immigration fuels population growth and labour force expansion, both vital components for a thriving housing market. However, ensuring adequate housing supply to accommodate newcomers is equally crucial to prevent exacerbating affordability pressures.
“To address Canada’s housing challenges, collaborative action from policymakers, stakeholders, and communities is paramount. Together they must bolster housing supply to navigate its housing crisis and pave the way for a more equitable and sustainable future,” added Dan.
For deeper insights into the Loyalist’s research and Canada’s housing market dynamics, explore TRREB’s 2024 Market Outlook and Year in Review Report.