Housing supply

Labor shortage to restrict housing supply in Canada – CMHC

OTTAWA, Oct 6 (Reuters) – There are not enough skilled workers to build the new apartments and houses needed to meet growing housing demand in Canada’s most populous provinces, the national agency said on Thursday. housing.

The Canada Mortgage and Housing Corporation (CMHC) said a shortage of skilled construction workers is a major challenge to filling housing supply gaps that exist primarily in Ontario, British Columbia and Quebec. .

Ontario, the most populous province and home to Canada’s financial capital, Toronto, is expected to have more new households than new homes by 2030, the agency said.

“Labour capacity will be a big issue and this could make housing less affordable,” CMHC said in a report.

The agency studied housing affordability in Canada and said in June that the country needed to build millions of new homes by 2030 to restore affordability.

“While the pandemic has shown that the workplace can pivot and handle higher construction volumes with fewer workers, this can still lead to construction backlogs, which will create delays and delay the supply of new units to markets. who need more supply,” the CHMC said.

Booming demand and low interest rates during the COVID-19 pandemic have driven home prices up by more than 50%. Although prices have weakened in recent months as the Bank of Canada has raised interest rates sharply to curb high inflation, potential buyers are now being squeezed out of the market due to rising interest rate eligibility rates. Mortgages.

In August, Prime Minister Justin Trudeau, describing housing affordability as a “complex issue” to be solved, detailed plans to spend C$2 billion ($1.46 billion) on fast-track housing and a new rental program with option to buy.

The Trudeau government has said it wants to double the pace of housing construction within a decade to tackle the problem of housing affordability.

($1 = 1.3735 Canadian dollars)

Reporting by Ismail Shakil in Ottawa; Editing by Josie Kao

Our standards: The Thomson Reuters Trust Principles.