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Canada Needs 3.5 Million Additional Homes, Government Study Says

Adding supply is only solution to affordability crisis, CMHC says in a report recommending that the pace of construction be doubled. 

A condo building under construction in Lasalle, Quebec, on Thursday, June 2.

A condo building under construction in Lasalle, Quebec, on Thursday, June 2.

Photographer: Christinne Muschi/Bloomberg

Canada must build an extra 3.5 million homes to get its housing market — one of the least affordable in the world — back in line with local incomes, according to the country’s national housing agency.

The country needs to more than double its current pace of home construction to make up for the imbalance of supply and demand that has built up over recent years, the Canada Mortgage and Housing Corp. said in a study released Thursday. Many of the additional units would have to go to Ontario and British Columbia, to get the share of income that residents spend on housing close to 40% from the current 60% figure, according to the agency.