The Feds also out today announcing the previously leaked cut in immigration numbers and suggesting that this result in easing the housing crisis.....
So yeah, about that...............
Swell.
But.....the Minister is out suggesting that this renders unnecessary the construction of 670,000 housing units.............
Ahem.
To arrive at that number he is using a 'savings' from what would have been necessary had we continued on our previous pace of population growth.
The announced targets will, potentially reduce Canada's total population by 0.2% by the end of 2026/early 2027.
So, if you run that number, 0.2% of ~42 million people is 84,000 people, who on average would occupy ~34,000 units.......that does not reduce the need by 670,000!
It should, however, free up about 34,000 existing units, which is good news, and should have a suppressive effect on rents/ownership prices.
But to arrive at a workable number, we really need deeper cuts, that last longer.
A reduction in population of 1.5% over 5 years would likely bring the market somewhere close to balance.
That would mean 630,000 fewer of us, freeing up 250,000 homes.
To be clear, that's not enough to address the country's needs unless we also:
a) Boost incomes for low, lower-middle, and middle income earning households.
b) Goose the housing supply by close to 1M units over 5 years.