Feds blame failed housing plan on immigration, construction delays
Canada needs 480,000 new housing units annually until 2035 to address supply gaps, yet less than half of that was built last year.
The Canada Mortgage and Housing Corporation (CMHC) estimates Canada needs 430,000-480,000 new housing units annually until 2035 to address supply gaps in ownership and rental markets. Only 227,697 homes were built last year.
The record for housing starts in Canada is 273,200, set in 1976, according to Blacklock’s.
CMHC's Aled ab Iorwerth called the housing gap "challenging," noting it's double Canada's current construction pace of 245,000-250,000 units.
Prior government and CMHC briefings partially attribute the crisis to low investor interest and outrageous immigration targets.
The Housing Corporation estimated in 2023 that Canada needed 3.5 million more homes by 2030, beyond the 2.3 million already projected, to reach 2004 affordability. The agency now states this 2030 timeline is "no longer realistic" due to post-pandemic price surges.
It reverted to 2019 affordability levels, intending to cut house prices by about one-quarter over the next decade. Average rents would also fall roughly 5%, according to the report.
Builders and bureaucrats earlier acknowledged that Liberal plans were doomed to failure. The federal government aims to double annual housing starts through 2035.
Prime Minister Mark Carney is offering $25 billion in debt and $1 billion in equity financing to builders to halve construction times.
"It's absolutely critical to increase housing supply," ab Iorwerth said, citing Toronto, Vancouver, and Montreal as key cities particularly affected. Housing starts reached 90,760 by May, according to agency estimates.
Doubling housing construction requires a modernized workforce, increased private investment, reduced regulation and delays, and lower development costs, said the chief economist, who emphasized construction innovation and improved labour productivity.
Despite soaring home prices and declining homeownership, the housing agency has approved $132 million in bonuses since 2020.
Rebel News attempted to reach the CMHC for comment on its performance targets but did not hear back at publication.
Meanwhile, the Canadian Real Estate Association forecasts the average home price to hit $722,221 in 2025.
According to documents obtained by The Counter Signal, a secretive memo from the Secretary of the Cabinet, Janice Charette, claimed recent immigration plans made housing less affordable. Then-Prime Minister Justin Trudeau ignored her advice, dated June 24, 2022.
The CMHC in its 2025 Housing Market Outlook partially attributed affordability challenges in urban centres to immigration targets.
The most recent Immigration Levels Plan will cut back the number of permanent residents Canada accepts through 2027 to address those concerns, with targets set for 395,000 people in 2025, followed by subsequent 15,000-person cuts in 2026 and 2027. Canada brought in 104,256 immigrants in the first quarter of 2025.
Alex Dhaliwal
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Alex Dhaliwal is a Political Science graduate from the University of Calgary. He has actively written on relevant Canadian issues with several prominent interviews under his belt.
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COMMENTS
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Robin Dutton commented 2025-06-24 23:28:24 -0400With Carney and the Libs environmental policies targeting industry, does anyone really think that the costs of building will go down?
Now we are going to follow the EU’s carbon emissions parity for industry, under the guise of creating an even playing field for over taxed and regulated industry. These policies will do nothing but raise prices and enrich the insiders. -
Bernhard Jatzeck commented 2025-06-24 22:10:07 -0400It might help if this country stopped importing “immigrants”.
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Bruce Atchison commented 2025-06-24 19:38:23 -0400Brookfield shipping containers and Brookfield modular homes are Marx Carny’s plan for us. Families need single-dwelling homes, not metal or particle board shacks with no driveways or yards.
