By Craig Lord
Briefing supplies ready for incoming Housing Minister Gregor Robertson this previous Might and launched this week acknowledge that pricey housing is hurting the economic system and making it troublesome for individuals to seek out locations to dwell.
“Weak populations and lower-income households are struggling to have their fundamental housing wants met attributable to an absence of appropriate reasonably priced housing,” the paperwork say.
Center-class Canadians are additionally struggling to purchase houses and are staying in rental models longer, “inserting further pressures on rental provide and rising rental prices.”
Andy Yan, an city planning professor at Simon Fraser College, mentioned that it’s revealing how bureaucrats body the state of the housing market in Robertson’s briefing binder.
“That is a kind of paperwork that really permits us to grasp not solely how the minister is briefed however then how the equipment of Ottawa views the housing downside throughout the nation,” he mentioned.
Canada’s speedy inhabitants development in recent times outpaced development in different G7 nations and is “compounding pressures and prices for communities,” the paperwork say.
Elsewhere within the briefing supplies, bureaucrats be aware that Ottawa’s plans to tamp down on inhabitants development are anticipated to gradual financial exercise and maintain house costs decrease than they might be in any other case.
Ready through the peak of uncertainty tied to U.S. President Donald Trump’s tariffs, the paperwork additionally contend that commerce disruption would “create vital uncertainty on general investments and costs.”
The paperwork predict that Canadian house costs will develop sooner in 2025 however cool over the following two years, whereas housing begins will decelerate this 12 months however stay above the 10-year common.
Rental provide is predicted to develop whereas demand falls with slower inhabitants development, pushing the emptiness price increased, the paperwork say.
Projections in Robertson’s briefing supplies are primarily based on forecasts from BMO, RBC, the Canadian Actual Property Affiliation and the Canada Mortgage and Housing Corp.
Authorities figures within the briefing binder present the price of developing a residential constructing in Canada has elevated 58% since 2020 and will rise even additional, because of U.S. tariffs.
The briefing be aware additionally acknowledges there was “a rising mismatch between the housing sorts being constructed and people most popular and wanted.”
Yan mentioned the briefing notes reveal a deal with provide and market dynamics however omit a lot evaluation on homebuyers and renters.
In main cities akin to Vancouver, Yan mentioned, the earnings differential between renters and owners is critical and performs a serious function in figuring out general housing affordability.
“They discuss housing costs. They speak (housing) begins and resale exercise and rental vacancies. However I feel what I don’t essentially see is, who we’re making an attempt to accommodate,” he mentioned.
The paperwork allude to the financialization of Canadian actual property, citing estimates from the Federal Housing Advocate that 20% to 30% of purpose-built rental models are owned by institutional buyers.
However Yan mentioned the binder pays little consideration to the function international capital has performed in market costs, and will play in getting new houses constructed.
“I sit up for listening to about their options however but their preliminary prognosis of the issue appears to be about half the image,” he mentioned.
The briefing supplies present that common nightly homeless shelter use rose 43% between 2020 and 2023. Lengths of shelter stays are additionally rising, the paperwork be aware, suggesting boundaries to ending homelessness.
The paperwork say the federal government has fallen behind on investing in housing supplied beneath market charges, a shortfall that’s hitting newcomers and weak Canadians particularly laborious.
Canada’s inventory of non-market reasonably priced houses stands at 4% of the whole housing combine, in need of the OECD common of seven%.
Robertson himself acknowledged Canada has been a laggard in non-market housing on his first day as minister.
“The Authorities of Canada has not been constructing reasonably priced housing because the nineties and we’ve created an enormous scarcity throughout Canada. That’s the place the massive want is correct now,” he advised reporters after his swearing-in on Might 14.
Requested on that day whether or not he felt house costs want to return down to revive affordability, Robertson mentioned he didn’t.
“I feel we have to ship extra provide and ensure the market is secure,” he mentioned.
The federal authorities plans to create a brand new Construct Canada Properties company to ramp up the tempo of reasonably priced homebuilding and encourage builders to undertake new applied sciences.
Prime Minister Mark Carney mentioned on the Liberal caucus retreat earlier this week that his authorities would launch the brand new company within the coming days. He advised a serious housing announcement can be made on Sunday.
Conservative Chief Pierre Poilievre on Tuesday blamed the Liberals for the tempo of housing building following the discharge of a CMHC report exhibiting a slowdown in housing begins in Toronto and Vancouver within the first half of 2025.
“Mr. Carney has completed the unattainable. It’s a triple disaster, with costs too excessive for patrons to purchase, too low for sellers to promote and insufficient for builders to construct,” he mentioned.
He additionally mentioned the Liberals have to “get immigration underneath management,” arguing that the massive inflow of newcomers over the previous decade has triggered housing shortages and is accountable for rising youth unemployment.
— with recordsdata from Sarah Ritchie
Visited 43 instances, 43 go to(s) right this moment
affordability craig lord Gregor Robertson home price data The Canadian Press
Final modified: September 12, 2025
