In late December last year, the Canada Mortgage and Housing Corporation (CMHC) published a retrospective of its housing reports throughout 2023, including what Canadians may be able to expect in 2024.
This is a report that could be vital for newcomers to Canada, who are among the Canadian residents most affected by the national housing affordability crisis in this country. The CMHC identified several main themes in the many reports that the organization published throughout 2023. Among the most prevalent was the revelation that “housing costs became increasingly difficult for many Canadians.” The CMHC is one of Canada’s foremost authorities on housing in this country, “providing … housing data, research and market insights for more than 75 years.”
The report aims to help Canadians better understand the issue by analyzing key data uncovered over the last calendar year to “shed light” on housing affordability across the country and the “difficulties faced by Canadians in terms of housing costs.”
Rental Market Turnover
According to data gathered across CMHC reports, there was a high degree of rental turnover in the past calendar year. The December retrospective published by the CMHC suggests that this degree of rental turnover is most potently influenced by factors “such as job mobility, lifestyle changes, or the pursuit of more affordable housing options.”
As the data bore out (presented below), this was especially true for people living in “urban centers” that were subject to rent increase guidelines, as CMHC data displays markedly higher rent prices and levels of rental turnover in cities such as Toronto, Vancouver, Ottawa-Gatineau, and Montreal. The rental turnover and costs were noticeably lower in Calgary and Edmonton – two cities without rental increase guidelines.
Housing Supply Gaps
By 2030, the CMHC’s “estimate of the current housing supply gap projects a demand for 3.5 million more homes than anticipated.” CMHC data suggests there has been a two percent decrease in the overall national “housing stock” projections for 2030 between the report published in 2022 and the most recent report from 2023.
What to expect from Canada’s housing market in 2024 and beyond
“Housing affordability will remain a central theme in our work in 2024,” says the CMHC, adding that “innovative, evidence-based solutions are urgently needed to address Canada’s housing crisis and ensure everyone has a home that meets their needs and that they can afford.”
To this end, the Canadian federal government has already outlined several steps it is taking to increase housing supply and affordability across this country. Among these steps are the following, described in Canada’s Housing Action Plan released in November 2023.
More Financing for Apartment Construction
Recognizing that “the supply of rental housing in Canada needs to keep pace with our growing communities”, the 2023 Fall Economic Statement announced an additional $15 billion (for a total of more than $4 billion) in new loan funding, starting in 2025-26, for the Apartment Construction Loan Program.
Building More Affordable Housing
As part of the 2023 Fall Economic Statement, Canada announced an additional $1 billion over three years, starting in 2025-26, for the Affordable Housing Fund.
Repurposing More Federal Lands for Housing
Canada has committed to using “surplus federal lands” as space to build “more than 29,000 new homes … by 2029.” Specifically, as one step in this process, the federal government announced in November last year that “six surplus federal properties will be developed into more than 2,800 new homes in Edmonton, Calgary, St. John’s, and Ottawa.”
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