The Canada Mortgage and Housing Corporation (CMHC) is prioritizing the development of programs aimed at increasing housing supply rather than solely stimulating demand, according to CMHC CEO Ms. Volk. Speaking about recent housing policy measures, she emphasized the need for a balanced approach that avoids driving up prices by focusing exclusively on demand-side incentives.
Ms. Volk pointed to Ontario’s recent introduction of a rebate on the Harmonized Sales Tax (HST) for new-construction homes as an example of demand-driven measures that could inadvertently escalate housing costs if not paired with efforts to expand supply. “Our concern is making sure that we address supply, not just demand. Demand-side measures can run up prices,” she said.
The CMHC, which has historically provided mortgage insurance for homebuyers, is also lending its expertise to the $13-billion Build Canada Homes agency. Established last year by Prime Minister Mark Carney, the agency’s mandate is to reduce financial risks associated with affordable housing projects in order to attract private developers. Ms. Volk described the collaboration between CMHC and Build Canada Homes as productive, underscoring a shared commitment to minimizing friction within the housing system.
Beyond fostering increased housing stock, CMHC is focused on ensuring that new developments meet broader community needs. This includes considerations of accessibility, climate responsiveness, and overall livability, elements Ms. Volk said are essential to creating desirable communities. “We definitely want to see communities built,” she noted.
Regarding incentives for developers to construct larger condominium units equipped to accommodate families, Ms. Volk explained that the CMHC’s financing assessments do take unit size into account. However, she acknowledged that higher land costs in major urban centers like Toronto and Vancouver make it costly to build larger units, adding complexity to efforts to provide family-sized homes.
She highlighted a First Nations-led project in downtown Winnipeg, repurposing the historic Hudson’s Bay Company building, as a positive example where multiple-bedroom units are being incorporated successfully. “It is much harder in Toronto and Vancouver because of land values, obviously. It was probably a little easier to do in Winnipeg, but it can be done,” she said. Ms. Volk also emphasized that developing larger units involves trade-offs and that targeted incentives could support these efforts despite the challenges.
Overall, the CMHC continues to focus on strategies that encourage increased supply while promoting housing that supports social benefits and community well-being, aiming to address affordability and livability in tandem.