Unlocking housing supply: Why scale really matters

OTTAWA, ON, Oct. 17, 2025 /CNW/ - Canada's construction industry is one of the country's least digitized and modernized sectors and the pace of new home construction has not been able to break through a ceiling of about 250,000 housing starts annually. As Canada Mortgage and Housing Corporation (CMHC) research shows, the current pace of housing starts needs to double to reach pre-pandemic levels of affordability, making faster construction timelines essential.

Mathieu Laberge, Chief Economist and Senior Vice-President, Housing Economics and Insights for CMHC (CNW Group/Canada Mortgage and Housing Corporation (CMHC))

Currently, micro businesses, with just one to four employees, make up 70% of Canada's construction industry. In his latest article, CMHC's Chief Economist, Mathieu Laberge, explains how scaling up these businesses can lead to innovative building techniques, adoption of new materials and AI, and overall increased productivity. Also, what Canada can learn from the Netherlands, which has achieved scale in the housing sector, including with not-for-profit affordable housing providers.

Read the full article on the CMHC website: Unlocking housing supply: Why scale really matters

Quote:

"Canada's housing sector stands at a pivotal moment. By scaling up our construction industry and empowering housing providers, we can lower costs, reduce reliance on public funding, and accelerate the supply of both market and non-market homes," said Mathieu Laberge, CMHC's Chief Economist. "International models show us that consolidating and modernizing isn't just possible - it's essential for delivering housing affordability for all Canadians."

Quick Facts:

• Canada has 40,349 businesses employing workers in the residential construction industry. Of these, only six had more than 500 employees, with the majority (69.5%) being micro businesses with just one to four employees.
  
  
• Most Canadian not-for-profit housing providers manage a few hundred housing units, with larger ones overseeing between 1,000 and 2,000 units. In the Netherlands, not-for-profit housing associations manage an average of 10,000 units, with larger organizations overseeing up to 80,000.

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SOURCE Canada Mortgage and Housing Corporation (CMHC)

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