Canada Needs to build 4.8 Million New Homes 10 Years
Canada Must Build 4.8 Million New Homes in 10 Years to Restore Affordability, Says CMHC
The Canada Mortgage and Housing Corporation (CMHC) has released a sobering new report projecting that Canada needs to build up to 4.8 million new homes by 2035 to restore housing affordability to levels last seen in 2019.
This target represents twice the current pace of construction. As of May 2025, only about 90,760 housing starts have been recorded nationwide—a rate far below what’s needed to meet the growing demand for both ownership and rental housing.
According to CMHC’s latest housing supply gaps estimate, between 430,000 and 480,000 new housing units per yearmust be delivered to close the affordability gap across the country.
“Doubling the pace of construction is achievable,” said CMHC Deputy Chief Economist Aled ab Iorwerth, “but not without a significantly larger and modernized workforce, more private investment, reduced regulation, faster permitting, and lower development costs.”
The report highlights Ontario and Nova Scotia as the provinces with the most severe housing supply shortfalls, while Montreal tops the list of Canadian cities facing the largest affordability gap.
CMHC previously estimated in 2023 that an additional 3.5 million homes would be needed by 2030, beyond the 2.3 million already expected to be built. This latest update expands the timeframe and urgency of the challenge.
As affordability continues to erode in many regions, this report reinforces the need for coordinated efforts between governments, developers, investors, and the construction industry to dramatically scale up housing delivery nationwide.

