CMHC reports Canada needs 4.7 million new homes by 2036

The Canada Mortgage and Housing Corporation (CMHC) reports that Canada requires approximately 4.7 million new housing units by 2036 to restore pre-pandemic affordability levels. To meet this goal, the country needs to construct between 417,000 and 469,000 new homes annually over the next decade.

While the housing supply deficit has slightly decreased in some areas, CMHC warns that progress is threatened by a potential slowdown in new construction, particularly in the owner-occupier market. Regional trends vary: the supply deficit has shrunk in Toronto and Calgary, remained stable in Vancouver, but widened in Montreal and Ottawa. Edmonton is currently the only major Canadian market without a housing shortage.

Simultaneously, CMHC notes a significant shift in borrowing habits. Since 2022, Canadian borrowers have increasingly moved away from five-year fixed-rate mortgages in favor of shorter terms or variable-rate mortgages. This trend places greater financial risk on households, as they become more exposed to interest rate fluctuations compared to systems in countries like the United States, where long-term fixed rates are more common.