Canada’s housing supply shortage persists despite an oversupply in certain market segments, Canada Mortgage and Housing Corp. (CMHC) CEO Coleen Volk said on Monday, signaling the need for continued construction of new homes to address ongoing demand.
Speaking with a national editorial board, Volk acknowledged a significant downturn in sales of newly built houses and condominiums in recent years, particularly in major cities such as Toronto and Vancouver. She attributed this trend to an uneven market dynamic rather than a resolution of the broader housing crisis.
“There’s a lot of talk about maybe we’ve manufactured a soft landing for the housing market, and everything’s fine, and there’s no more supply shortage – and that’s not our belief,” Volk said. She emphasized that while some sectors—most notably the condo market and luxury rental apartments—show signs of oversupply, the overall shortage of housing remains acute, especially in affordable middle-class segments. Apartment vacancy rates continue to be historically low, reflecting sustained pressure on rental availability.
Volk highlighted ongoing demand driven by younger Canadians and new immigrants, many of whom are still seeking to enter the housing market but face barriers due to limited supply.
Since 2017, CMHC has overseen the federal government’s National Housing Strategy, a ten-year program investing $82 billion so far to increase affordable housing options across Canada. The strategy focuses on community housing, rental apartments, developments on federal land, and rapid shelter solutions for vulnerable populations.
With the initial phase of the strategy nearing completion, the federal government established the Build Canada Homes agency to further expand non-market or social housing development. Volk stated that CMHC is considering new initiatives to support market-priced housing construction as well, aiming to fill gaps where demand remains unmet.
One challenge for developers is the financial risk associated with initiating projects before confirming sales. Volk noted that CMHC is exploring ways to assist builders in navigating this issue. She added that ongoing consultations with the federal department responsible for housing and infrastructure are underway to identify effective measures.
As Canada continues to confront a diverse set of housing challenges, officials suggest that targeted approaches addressing both oversupplied and undersupplied sectors will be essential to achieving balanced, long-term housing availability.