What if tariffs helped Canada build more homes?

OTTAWA, ON, Sept. 24, 2026 /CNW/ -- U.S. tariffs on Canadian lumber and wood products could create an unexpected opportunity to support housing supply. While tariffs continue to weigh on Canada's economy, new research from Canada Mortgage and Housing Corporation (CMHC) shows they may make more Canadian wood products available for domestic use, helping reduce construction costs for certain types of housing.

Mathieu Laberge, Chief Economist and Senior Vice-President, Housing Economics and Insights for CMHC

CMHC Chief Economist, Mathieu Laberge's latest analysis suggests if Canadian wood products were used more consistently in domestic homebuilding, annual ground-oriented housing starts could increase by approximately 3.5%, resulting in nearly 4,000 additional homes per year. Construction costs for this type of housing could also fall by as much as 17% in some centres. Detached homes and townhouses would benefit most, as they rely heavily on wood products compared to high-rise apartment buildings.

Quote:

"The current tariff situation could present an opportunity to address Canada's housing supply challenges while strengthening the connection between the forestry and housing sectors. A stronger domestic market for Canadian wood products can support both increased homebuilding and a more resilient forestry industry."

 – Mathieu Laberge, Chief Economist, CMHC

Read the full article on CMHC's website.

Canada Mortgage and Housing Corporation (CMHC) is a federal Crown corporation and the foundation of Canada's housing system. For over 80 years, CMHC has supported the functioning of housing markets across the country through housing finance solutions -- including mortgage loan insurance and securitization -- while providing trusted, unbiased data, research and market intelligence to inform policy and decision making. Through its national presence, deep expertise in housing economics and finance, and a system-wide perspective, CMHC helps foster a more stable, well-functioning housing market that supports households, communities and the broader economy.

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SOURCE Canada Mortgage and Housing Corporation (CMHC)

To request an interview with Mathieu Laberge, Chief Economist, CMHC, please contact CMHC Media Relations: [email protected]