Canada Must Increase Housing Construction by 50% to Support Higher Immigration Levels

Photo of a new condo under construction in Ottawa, representing the ongoing development of the city's housing market to meet the needs of its growing population.


Canada is facing a significant challenge as it seeks to accommodate higher immigration levels, according to a recent report. The report recommends that Canada needs to build 50% more homes than it currently does to support the incoming population.


Increasing Immigration Levels in Canada


The Canadian government recently announced plans to increase immigration levels to approximately 1.2 million by 2023. This announcement comes in response to a growing need for skilled workers and a desire to stimulate the economy.


However, this increase in immigration levels presents a significant challenge for Canada, as the country's housing market is already struggling to keep up with demand. Canada's housing market has been experiencing a boom in recent years, with home prices increasing rapidly in some of the country's major cities.


The report, commissioned by the Canadian Home Builders' Association and the Ontario Real Estate Association, highlights the need for increased construction of homes to accommodate the growing population. The report estimates that Canada will need to build an additional 1.8 million homes by 2031 to meet demand, which is a 50% increase from the current construction rate.


Impact on the Canadian Economy


The report also emphasizes the significant impact that the construction industry has on the Canadian economy. The report estimates that a 50% increase in housing construction could add up to $200 billion to the Canadian economy over the next decade, and create up to 50,000 additional jobs annually.


However, the report also notes that the lack of available land and the high cost of building materials are major challenges that need to be addressed to facilitate increased construction. The report recommends that the Canadian government work with industry stakeholders to address these challenges and implement policies that incentivize increased construction.


Canada's plan to increase immigration levels presents a significant challenge for the country's housing market, and a new report emphasizes the need for increased construction of homes to accommodate the growing population. The report estimates that Canada will need to build 50% more homes than it currently does to meet the demand, which will have a significant impact on the Canadian economy. While there are challenges to increasing construction, the report recommends that the Canadian government work with industry stakeholders to address these challenges and incentivize increased construction.


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