Investors and investments are key to building more housing in Canada – Financial Post

Oct 23, 2023

Without investors, almost all rental housing stock could disappear, jeopardizing living arrangements for millions

Canada Mortgage and Housing Corp. estimates this country must build almost six million new homes by 2030 to restore housing affordability, but the odds of meeting this target, or even half of it, are low given that not even 2.5 million homes have been built in any decade during the past 100 years.

The goal of building six million homes in fewer than 10 years is very ambitious, but these targets may remain elusive given the intellectual and structural deficits slowing new housing construction. The structural deficits are understandable, but the intellectual deficits are surprising.

One needs land, labour, and capital to build new homes. Most land in urban areas or at its periphery has already been developed over the past five decades. Not In My Back Yard (NIMBY) enthusiasts defeat attempts to further densify urban neighbourhoods, and environmentalists prevent construction on greenfields, which makes building anywhere almost impossible.

Canada underwent a construction boom in the 1970s when it built 2.34 million new homes. It was a time of optimism when Canadians were inspired to put the country on the global map. The Summer Olympics in 1976 and the Expo 67 took place in Montreal when Canada dreamt and built big — and not just housing. Banks and other businesses were staking their claims in downtowns with new skyscrapers.

Read More: https://financialpost.com/real-estate/investors-investments-key-building-more-housing-canada