OTTAWA, ON, May 28, 2026 /CNW/ - New analysis from Canada Mortgage and Housing Corporation (CMHC) finds that housing starts in Canada could have been nearly 30% higher from 2006 to 2024, and home prices close to 10% lower, if regulatory conditions, along with economic and demographic structural factors, allowed housing supply to respond more quickly to increases in demand. In this article, CMHC's Chief Economist, Mathieu Laberge compares the responsiveness of the Canadian and U.S. housing industries over this period.

One factor in determining the pace of housing construction is land use regulation. In the United States, there are fewer zoning and land use constraints in many metropolitan areas. In contrast, tighter land use rules in Canada, particularly in major urban centres, have made it more difficult to add new housing supply in a timely manner.

Other economic and demographic structural factors also played a role in the poorer performance of the Canadian residential construction industry relative to the US industry. For example, housing demand in Canada is concentrated in a smaller number of large urban centres, giving households fewer comparable and affordable alternatives if they choose to move. This reduces incentives for the industry to react quickly to changes in housing demand. In contrast, the U.S. benefits from a larger network of major cities with similar job opportunities, which can help distribute demand more evenly and support a more responsive housing supply.

Read the full article on CMHC's website.

Related links:

• Why Canada's housing supply gap exists and how to fix it | CMHC
• Targeted demand interventions need supply for housing market affordability | CMHC
• We built this city on development charges... | CMHC
• High housing costs make it hard to move for desirable jobs | CMHC
• Beyond Toronto and Vancouver: Housing affordability challenges in Canada | CMHC

For 80 years, CMHC has been the foundation of Canada's housing system, promoting stability and sustainability. CMHC's mortgage insurance products support access to home ownership and the creation and maintenance of rental supply. CMHC research and data help inform housing policy. By facilitating cooperation between all levels of government, private and non-profit sectors, CMHC contributes to advancing housing affordability, equity, and climate compatibility. CMHC actively supports the Government of Canada in delivering on its commitment to make housing more affordable.

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SOURCE Canada Mortgage and Housing Corporation (CMHC)