Particle.news

Download on the App Store

Removing Trade Barriers Could Spur 30,000 More Homes Annually, CMHC Finds

Federal omnibus legislation cleared national red tape; provinces must now harmonize trade rules, overhaul transport networks to enable the extra housing supply.

New homes are constructed in Ottawa on Monday, Aug. 14, 2023. A new analysis by the national housing agency estimates Canada can add 30,000 more housing starts annually by eliminating interprovincial trade barriers. THE CANADIAN PRESS/Sean Kilpatrick

Overview

  • CMHC analysis estimates that lifting interprovincial trade barriers would add about 30,000 housing starts per year, raising total annual starts to nearly 280,000.
  • The projected boost represents roughly 15% of the extra annual supply needed to restore pre-pandemic housing affordability by 2035.
  • CMHC chief economist Mathieu Laberge says easing west-to-east transportation constraints is essential for moving domestic construction materials across provinces.
  • A Statistics Canada survey cited in the report shows nearly half of construction firms avoid out-of-province suppliers due to distance and shipping costs.
  • Bill C-5 has cut key federal red tape and accelerated infrastructure permitting, but provincial trade regulations and permitting rules remain significant obstacles.