The federal government’s Canada Housing Plan, released earlier this year, outlined a vision to build 3.87 million new homes by 2031. But so far, it’s not going so well.
What happened: Per the Toronto Star, labour shortages, rising materials costs, and high interest rates are contributing to a growing number of real estate developers going out of business this year, as all levels of government try to ramp up the country’s housing supply.
- Twenty-seven Ontario developers have gone into receivership so far this year, the highest number in years, with dozens of builders owing millions to their creditors.
Why it matters: According to a report by Desjardins, new measures to boost housing supply, from tax incentives to opening up public land for building, likely won’t be enough to meet federal targets because of remaining regulatory hurdles and resource constraints.
Big picture: The authors of the report say the “housing supply crisis can still be lessened through building as many homes as possible.” Just three weeks ago, housing starts in Canada surprised experts when they rose to their highest level in more than a year.—SB