Canada Targets 3.87 Million New Homes by 2031 to Address Housing Affordability

Ottawa, ON – The Canadian government has outlined an ambitious plan to facilitate the construction of 3.87 million new homes by 2031, aiming to alleviate persistent housing affordability challenges across the nation. This comprehensive strategy comes amidst public discourse, with some critics, like social media user "Coddled Affluent Professional," asserting that Canada's economy is overly reliant on housing inflation driven by immigration. The tweet, posted on August 17, 2025, stated, > "It’s crazy that Canada is trying to make their economy run on housing inflation. That’s it, that’s literally their whole economic program: importing people to force up real estate prices. Unbelievably stupid although I guess still better than the UK."

Recent data from July 2025 indicates a mixed landscape in the Canadian housing market. While national home sales saw a 3.8% month-over-month increase, continuing a four-month upward trend, the national average home price edged up only 0.6% year-over-year to $672,784. Regional disparities persist, with provinces like Newfoundland and Labrador experiencing significant benchmark price gains (10.7% annually), contrasting with declines in Ontario (down 6.9%) and British Columbia (down 2.3%), according to WOWA.ca data for June 2025.

In response to housing demand pressures, the federal government has adjusted its immigration strategy. The 2024-2026 Immigration Levels Plan moderates the intake of new permanent residents, and a significant reduction in temporary residents is underway, aiming to decrease their share to 5% of the overall population over the next three years. This adjustment is intended to better align population growth with housing capacity, as stated in the 2024 Canadian Budget report.

The government's multi-pronged approach to boosting housing supply includes financial incentives for builders, such as an accelerated capital cost allowance for apartments and an expanded GST removal for rental housing projects. Initiatives like the $4-billion Housing Accelerator Fund aim to cut red tape and fast-track construction, with 179 agreements already signed to enable over 750,000 new units over the next decade. Plans also involve leveraging underutilized public lands and investing in innovative construction technologies to build homes more efficiently.

Beyond supply, the strategy addresses affordability for individuals. Measures include extending mortgage amortizations for first-time buyers of new builds, enhancing the Home Buyers' Plan, and establishing a Tenant Protection Fund. The government also plans to restrict the purchase of existing single-family homes by large corporate investors and extend the foreign buyer ban until January 1, 2027, aiming to curb speculative activity and ensure homes are for residents. These efforts underscore the government's view that housing policy is integral to broader economic stability and generational fairness.