Canada’s Growing Population and Decades-Long Shortfall in Home and Apartment Building Continue to Impact Housing Availability

According to the recently released Re/Max Canada 2022 Housing Inventory Report, inventory levels in eight major Canadian housing centers have been dwindling over the past decade. And even with lower levels of real estate activity this year, affordability will be a growing concern along with availability, as household formation and immigration continue to fuel housing demand.

The report’s findings reveal that active listings in July were running below the 10-year average in almost all markets surveyed.

According to Statistics Canada (StatsCan), the nation is preparing to experience an increase in population growth, as Canada has committed to welcoming 1.2 million immigrants into the country between 2021 and 2023. While the immigration policy is aimed at accelerating economic growth and reducing the current labor shortage, the increase in newcomers—coupled with the formation of new households overall—is expected to increase the housing shortfall even further.

Currently, Canada is averaging between 200,000 and 300,000 new units per year.

The Re/Max Canada report further warns that with new housing starts and purpose-built rentals continuing to fall short of growing demand, the housing supply issues could push even more buyers into the rental markets, which in turn will add more pressure to a sector already under pressure and experiencing price increase. Re/Max notes that additional factors such as rising lending rates, a tight labor market, and supply chain shortages are going to further impair the situation.