A popular topic within the Canadian real estate and construction industry is the housing supply shortage. The Canadian housing demand remains high while development projects have slowed down. The cost of labour and materials have increased while the amount of tradespeople staff has decreased.
Limited construction is taking place due to the complicated zoning regulations, high construction costs and the lack of available land. There is still a disruption in the Canadian chain supply which started during the COVID-19 pandemic. Foreign buying resulted in home purchases that were left vacant. As of January 2023 the Foreign Buyer Band was implemented to mitigate this. Across the construction industry labour shortages continue to occur, adding to the minimal construction taking place.
The housing supply shortage affected more than reducing development projects. With fewer houses in a high demand market has caused bidding wars, which spike home prices. Homeowners often do not want to sell their homes to ensure they protect their low interest rates. Less home satisfaction is found when house hunting due to the competitive industry. Individuals are rushing to make purchases, their needs aren’t being fully met and the prices are higher than they anticipated.