A report released Wednesday morning offers a tangible take on how many new homes need to be built in Canada to restore affordability.
The Canadian Mortgage and Housing Corporation said that the slowing economy and growing population have changed the forecast for where housing is most needed.
We need about 3.5 million new homes by the end of the decade, with BC and Ontario dealing with the largest gaps between supply and demand. The predicted shortfall has grown since last year as the CMHC forecasts a slowing economy, tougher financing climate and stretched labour force will result in less construction.
"For British Columbia, higher estimated household numbers in 2030 and slightly lower estimated income per household lead to a relatively neutral impact on overall demand," the report states. "Still, the supply gap increases because of a lower projected number of housing units that will be built."
The CMHC said its analysis shows the importance of modelling demographic changes as well as economic conditions when planning policies to increase housing supply.