Solutions to the housing mess largely lie within our control

By Richard Lyall

June 5, 2026

A CMHC report noted that Canada could have produced nearly 30 per cent more housing in 2024, which is an astounding figure, but government and red tape got in the way, Richard Lyall writes in his latest blog.

“This logically helps put the housing crisis in perspective and explains why Canada is one of the worst-performing developed countries on new home supply,” he states.

Canada could have produced nearly 30 per cent more housing in 2024, according to a CMHC report released last week. That is an astounding and disturbing metric given housing is an economic need - not a want.  

Why the clanger of a miss?

Essentially, it's about government and red tape. This logically helps put the housing crisis in perspective and explains why Canada is one of the worst-performing developed countries on new home supply.

The report also points to the challenge facing Build Canada Strong, as housing affordability is a vital building block for any economy. Lest we forget; our ratio of housing cost to incomes blew way past long-term averages of 3.5:1 long before COVID. 

The RESCON team and allies for years have been sponsoring groundbreaking research on housing, advocating for change and supporting PropTech and ConTech innovation. We continue to drive cutting-edge research on infrastructure, the excessive taxation of housing and the need to modernize our regulatory system and approvals process.  

As an example, groundbreaking research showed that 36 per cent (2024) of the cost of new housing in Ontario was comprised of taxes, fees and levies that largely did not exist a generation before. We also commissioned an additional CANCEA report which showed that if the HST was cut for three years on new housing (Ontario) the government would still have net positive-related revenue. Others have carried out excellent research. Some have chosen to ignore the results. 

The response by some notable political leaders and government bodies has been very good - others less so. Some jurisdictions are tackling the issue while others have buried their heads in the sand. The fact is while policies are well announced, implementation leaves much to be desired.

The housing crisis has been examined to death. There have been more housing policy conferences than actual homes being built. The progressive chatting class echo chambers continue to repeatedly hold events on how to fix the housing crisis. People that really do know how to build largely avoid them - if they get invited at all. 

We know why we have a crisis and what must be done. Another conference won't help. We know we can't have Build Canada Strong without the housing Canadians expect and deserve. HST rebates must become permanent cuts. Bloated DCs in many jurisdictions must be cut permanently and harnessed with a new and fair government funding formula to pay for growth-related housing infrastructure. The regulatory approvals and modernization models already exist in other countries if the authorities had seriously cared to benchmark performance.

We also have cutting-edge homegrown PropTech and offsite talent. Between the two, Canada could become a world leader - which it should be. And can we stop talking about “modern methods of construction.” It's a rebranded handle for something we've had for decades - and it will not solve our crisis. 

Canada could be the Norway of the Western Hemisphere if we’d only start implementing reforms within a reasonable time after they were announced. It has been over a year since the HST rebate was first announced and the regulations are still not available. And that's a rebate!  

The DC announcement remains an announcement with few details. Hopefully the badly needed reforms there will not be delayed. Potential projects are waiting for clarity and predictability which drives investment and eventually construction. 

We need something at the 30,000-foot-level monitoring the big-picture housing supply progress relative to targets set and accurate metrics collected. All of which remain inadequate.

The decentralized nature of the Canadian federation has made accountability a challenge and keeps the door open for one level of government to continue pointing the finger at others. Meanwhile, there is only one level of taxpayer and one level of new home buyer or renter.  The solutions to unravelling the Gordian Knot housing mess largely lie within our control other than geopolitical events affecting inflation and interest rates. 

The CMHC 30-per-cent undersupply of housing should clearly be the equivalent of pulling a fire alarm. Imagine if we had a 30-per-cent undersupply of food? Those progressives who profess to help the most are often the NIMBYs blocking new development and sustaining red tape and taxes. Thus, those who can least afford housing ironically pay the highest price.

The goal should be to match demand with supply according to solid metrics. Like the Bank of Canada's inflation target, there should be one focused on maintaining a fair and reasonable housing cost-to-income ratio. Would that be too much to ask? 

We do have some noteworthy political leaders and municipalities that are driving change. We just need to support them so they can implement change faster. Listen to the experts who know how to build and stop hiring more consultants to regurgitate their costing solutions.