The federal government’s plan to achieve affordable housing levels through additional building is “completely unrealistic” and comes with a price tag of over $1 trillion, according to a new report.
The Fraser Institute report “Canada Needs to Save Much More to Finance an Ambitious Investment Agenda” looks at what Canada needs to do to improve housing affordability and attract more business investment.
In the report author Steven Globerman notes the Canada Mortgage and Housing Corporation (CMHC) estimates an additional 3.5 million housing units will need to be built by 2030 to maintain affordability.
Globerman, a senior fellow and Addington Chair in Measurement at the Fraser Institute, said for the federal government to meet the goal, an estimated $331 billion to $364 billion in additional capital investment will be needed each year from 2025–2030, requiring more private sector investment and domestic savings….