Across Canada, a 10% reduction in building restrictions (zoning rules, community consultation requirements, density limits, and environmental assessments) can raise annual home completions by almost 10% of total supply. A 10% reduction in approval delays adds another 3%.
A 10% increase in input costs — primarily materials, but also attributable to taxes, fees, and labour—reduces average annual housing completions by 25% to 35%, with the greatest impact on apartment-style housing.
Under current trends, Toronto median home prices are projected to rise to $1.8M in 2032 (in today’s dollars) from $1.4M in 2024 . Doubling completions could moderate this growth to $1.6M, validating de-regulation as a viable approach to stabilizing housing affordability in this high-demand metro.
Without supply acceleration, Vancouver home prices may exceed $2.8M by 2032. Only the most aggressive supply increases may stabilize prices around $2.5M.
In other markets, such as Montréal, prices continue to rise regardless of supply scenarios, while Calgary price growth is more sensitive to population shifts and completions.
Streamlining regulatory frameworks and approval processes can offer a boost to housing outcomes in major markets. At the same time, collaboration between all levels of government, developers, and the public is essential to creating a policy environment that reduces costs and supports development that meaningfully contributes to long-term affordability.
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