Canada’s homebuilding productivity under scrutiny amid rising costs and regulations

An exchange of views over declining homebuilding productivity in Canada has sparked differing views among stakeholders.

The Canada Mortgage and Housing Corporation (CMHC) reported that despite a record 650,000 workers in 2023, housing output reached only 240,267 units—far below its potential. Financial Post writers Murtaza Haider and Stephen Moranis echoed concerns, noting stagnant productivity since the 1980s.

However, industry leaders including Kevin Lee of the Canadian Home Builders’ Association argued that rising regulatory burdens, higher taxes, and complex construction processes are the real culprits, not labor inefficiencies. They emphasize the need to address these systemic challenges to boost housing output and meet Canada’s growing demand for homes.