Home construction must double over next decade to restore 2019 affordability: CMHC

Canada’s homebuilding pace must roughly double over the next ten years if the goal is to restore housing affordability to where it stood before the pandemic. Between 430,000 and 480,000 new homes need to be built every year until 2035, compared to the usual 245,000 or so per year. That means up to 4.8 million more homes than currently expected are needed to return to the affordability levels seen in 2019.

This shift isn’t out of reach, according to housing experts. It’s possible, but only if there’s serious effort from all levels of government, the private sector, and the construction industry. Canada needs to upgrade its construction workforce, attract more private investment, speed up approval processes, reduce red tape, and cut development costs. Without bold action, the housing crisis is likely to worsen.

To help make housing development more attractive and affordable, Peel Region has taken a significant step by cutting development charges in half. These are the fees builders pay to fund local infrastructure like roads, water systems, and parks. The reduced charges will be in effect from July 2025 through November 2026, aiming to lower the cost of building and, eventually, the price of homes for buyers and renters in Brampton, Caledon, and Mississauga.

The move came alongside a commitment of $1.3 billion in provincial funding to help fill the gap created by the fee reductions. However, the region included a deadline—if an agreement with the province isn’t reached by mid-October 2025, the reduced charges could be reversed. This approach is meant to spark development activity immediately while working out longer-term financial details.

Other Ontario municipalities are making similar moves. Mississauga has also lowered its residential development charges by 50% and is offering full exemptions on some larger rental units. In real terms, that dropped fees from about $38,000 to around $19,000 per unit. Vaughan, Burlington, and other cities are exploring or have already implemented their own reductions to encourage more housing projects.

All of this points to a clear path forward: increasing the number of homes built while reducing the barriers that slow things down. Doubling home construction in Canada won’t be easy, but steps like lowering development fees can make a real impact now. If governments and builders continue working together, the goal of restoring affordability within a decade becomes more achievable.