Canada needs to build roughly twice as many homes each year to return housing affordability to 2019 levels by 2036, according to the Canada Mortgage and Housing Corporation.
CMHC estimates the country is on pace to complete approximately 231,000 homes annually over the next decade.
Its fall housing-supply report says annual construction would need to reach between 417,000 and 469,000 homes to substantially narrow the supply gap.
High construction costs, difficult financing conditions and weakness in the condominium market continue to discourage new projects.
CMHC says purpose-built rentals account for about two-thirds of current apartment construction. That could provide renters with some relief in larger cities, but the shortage of ownership housing remains a long-term affordability problem.
The size of the gap varies by region and housing market.
