Ontario needs one million new homes over the next decade to resolve housing supply shortage.
As Ontario’s population continues to grow rapidly, a new report from the Ottawa-based Smart Prosperity Institute and the Ontario Home Builder’s Association suggests that Canada’s most populous province will need approximately one million new homes over the next decade.
The Need for New Homes
According to the Ontario Ministry of Finance, there are expected to be 2.27 million more people residing in the province over the next ten years. This growth will put a significant strain on the existing housing supply, leading to a shortage of available and affordable homes.
Report Highlights
The report estimates that 910,000 homes will be needed for new families, with 195,000 units projected to reside in high-rise apartments and the remaining 715,000 living in other forms of housing. Additionally, 65,000 units will address current supply gaps in the market, while 25,000 would provide a cushion for any unexpected additional population growth during this period.
The Impact of Housing Shortage
The report’s authors warn that failure to build one million new homes over the next decade will have severe consequences. "The goal of building one million new homes in the next ten years presents a challenge for Ontario," said Mike Moffatt, senior director of policy and innovation at Smart Prosperity Institute. "However, the prize is substantial: ensuring an adequate supply of high-quality available and attainable housing."
A shortage of housing supply will not only exacerbate the existing affordability crisis but also lead to increased competition for limited resources, resulting in higher prices and reduced living standards.
Surging House Prices
The report highlights that surging house prices are prompting young families to "drive until they qualify," as they leave expensive cities in search of more affordable housing. Between July 2019 and July 2020, 60,000 people left the City of Toronto and Peel Region for other parts of the province.
Municipal Councils Must Act
The West End Home Builders’ Association’s CEO, Mike Collins-Williams, emphasizes that municipal councils must approve the necessary mix of housing options in their communities to address the shortage. "We need more housing supply and choice in communities across Ontario," he said. "The one million new homes needed over the next decade can only happen if municipal councils approve the necessary mix of housing options."
Recommended Solutions
- Municipal councils must approve a mix of housing types, including apartments, townhouses, and single-family homes.
- Zoning laws should be revised to allow for more diverse and inclusive communities.
- Developers and builders must work with local authorities to ensure that new developments meet community needs.
Conclusion
The report’s findings are clear: Ontario requires a significant increase in housing supply over the next decade. Municipal councils, developers, and policymakers must work together to address the shortage and provide more available and affordable homes for young families and individuals.
Sources:
- Smart Prosperity Institute
- Ontario Home Builder’s Association
- RBC Economics report
- Toronto Regional Real Estate Board (TRREB)
- West End Home Builders’ Association
