PBO Report Finds Canada Needs to Construct 1.3 Million More Homes by 2030 to Address Housing Shortage

The parliamentary budget officer indicates that Canada would have to construct an additional 1.3 million homes by 2030 to bridge the country’s housing gap.

A recently published report examines the amount of additional homes needed to bring back Canada’s vacancy rate to historical norms.

Yves Giroux’s office’s report also factors in the formation of new households if sufficient housing options were available.

Using these benchmarks, the PBO calculates that Canada would have to build 181,000 more homes annually than its current rate.

The report does not consider recent federal initiatives to boost housing availability or Ottawa’s newly imposed restriction on temporary residents.

According to the Canadian Mortgage and Housing Corp., Canada must construct an additional 3.5 million homes by 2030 to reintroduce affordability levels from 2003-04.

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Mr. Giroux’s estimate is lower than that of the CMHC as he focused solely on closing the demand-supply gap.

The Liberal government has made several housing announcements in anticipation of the federal budget, primarily aimed at boosting housing supply.

The proposed measures include significant low-cost loans for stimulating rental construction and infrastructure funding for provinces and municipalities.

The government aims to regain support from young voters who are increasingly pessimistic about their homeownership prospects and grappling with soaring rental expenses.