A new report from the Canada Mortgage and Housing Corp. says the country's housing stock would need to climb to over 22 million units by 2030 to achieve affordability for everyone living in Canada.
The housing agency notes that two-thirds of the supply gap is found in Ontario and British Columbia, two markets that have faced major declines in affordability.
Around 2003 and 2004, an average household would have had to devote close to 40 per cent of their income to buy an average house in Ontario, and close to 45 per cent in British Columbia. As of 2021, that number is close to 60 per cent.
The report says additional supply would also be required in Quebec, as affordability in the province has declined over the last few years.
Achieving housing affordability for everyone in Canada will require developers to become more productive and make full use of land holdings to build more housing, CMHC says.
The agency also says governments must make regulatory systems faster and more efficient as well.