August 26,2025
RED FM News Desk
According to new estimates from the Parliamentary Budget Officer (PBO), Canada will need to build 3.2 million new homes over the next decade to close the current housing gap. However, Canada is not currently on track to meet this target.
A new report indicates that while housing construction is expected to increase over the next three years, it will likely return to historical levels by 2035. On average, about 227,000 homes are expected to be built annually, but to meet the housing shortfall, an additional 65,000 homes per year would be required.
Budget Officer Yves Giroux explained that in recent years, housing supply has not kept up with demand. He refers to this as “pent-up demand”—many people have been unable to buy or rent homes due to low incomes or high prices.
Giroux also noted that while Canada has recently adjusted its immigration policies, millions of new immigrants have already arrived in recent years, which will continue to place pressure on housing demand.
In 2024, the housing vacancy rate was just 3.3%, compared to an average of 6.4% between 2000 and 2019. This indicates that Canadians have fewer housing options, which in turn is driving up both rents and home prices.
The PBO estimates that only 2.5 million new homes will be built over the next 10 years—falling short of the 3.2 million required.
The report also highlights that these projections do not take into account recent government housing announcements. During the spring election campaign, the Liberal government pledged to double the rate of home construction.
Giroux stated that resolving the housing shortage depends on how federal and provincial governments implement their housing plans. He said, “It is still too early to tell whether these plans will be successful or not.”
Loading ...
