The private sector must be given the right incentives to invest more in the housing market to meet the goal of creating 3.5 million additional housing units by 2030, the Deputy Chief Economist of the Ministry of Finance said on Tuesday. Canada Mortgage and Housing Corporation (CMHC).
The federal agency’s forecasts show that Canada’s housing stock will need to reach more than 22 million units by 2030 to become affordable, which will require a total investment estimated at around $1 trillion.
Aled ab Iorwerth says private investment in housing can play a vital role in solving the housing affordability crisis, but the sector “needs to do better”.
In a letter released Tuesday, he calls for increased automation and innovation in construction, streamlining supply chains and moving from custom design to mass manufacturing to reduce housing costs.
He believes there needs to be more policy integration between governments to reduce red tape and financial barriers to new construction, while maintaining social and environmental goals.
Ab Iorwerth says harmful practices by some private owners must also be tackled through effective regulation to avoid the entire sector being blamed, but notes that the sector does not have the necessary data from municipalities and provinces to understand the extent of the problem.
