Canada’s Plan To Fix Housing? Just Change What Affordable Means

Canada’s building boom and slowing population growth finally pushed it closer to its affordability target. Just kidding. The Canada Mortgage and Housing Corporation‘s (CMHC) 2026 Housing Supply Report shows it was never a real target. Despite billions in subsidies and slower population growth, its estimated gap barely budged. The agency’s latest report pushes the target further back, while lowering the bar for affordability. The affordability target has shifted from 2004 levels to pre-pandemic levels. If you have questions about the agency’s math, good—your brain still works. Canada’s Housing Supply Gap Barely Narrowed With Building Boom Canada faces an annual supply gap of 187,000 to 238,000 homes on top of current construction levels, according to the agency. The country is building roughly 231,000 new homes annually, but that’s not even close to what’s needed, says the CMHC. They estimate 417,000 to 469,000 new homes need to be added per year to roll affordability back to 2019 levels, by 2036. That works out to 4.4 million homes over the decade at roughly double the current building pace. The agency estimates the national gap is “broadly unchanged,” but regions have diverged. In...