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Report says hoping for Canadian housing prices to plummet is not realistic

Canada must dramatically increase the pace of home construction — nearly doubling current annual housing starts — to address the country's deepening housing affordability crisis, according to a new report from the Canada Mortgage and Housing Corporation (CMHC).In its updated annual analysis of Canada's housing supply shortage, CMHC estimates that the country needs to build between 430,000 and 480,000 housing units annually until 2035, up from the current trajectory of about 250,000 units per year. The aim is to restore affordability to levels last seen in 2019, prior to the pandemic-driven housing boom.The federal Crown corporation has shifted its modelling framework to a rolling 10-year horizon, abandoning its earlier 2030 benchmark, which it now considers unrealistic due to the lengthy timelines needed for land use approvals and construction."Restoring affordability to levels last seen two decades ago isn't realistic, especially after the pos...


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