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The rising cost of housing in Canada is all about supply – by Bob Mussett
There is a tremendous amount of conversation swirling around the shortage of rental accommodation and the increasing costs to rent.  Both are results of the same issue.

We have a supply problem.
It should be noted, under supply of housing is an acute national problem, and if we don’t address it, the trickle-down effect on our collective quality of life and broader economy may well be disastrous for this city, province and country.  Failure to respond quickly and meaningfully to the housing shortfall will be catastrophic and far reaching.

Halifax has a unique housing market composition, when compared to other cities across Canada.   In Halifax, almost 50% of all housing stock is multifamily rental. There are many reasons for this, including the quality and diverse range of rental product available here. Halifax is a rental market, like no other in Canada.

CMHC estimates that for Nova Scotia to reach “equilibrium to sustain affordable housing” an additional 50,000 units across our housing stock, are required by 2030 and that number is climbing. With current in-migration, natural new household creation, and immigration, CBRE estimates, Halifax is currently undersupplying market demand by +/- 1500 units per year.

Instead of addressing the CMHC goal, we are in fact going backwards.

To add a bit of perspective, to execute on development and deliver 50,000 additional housing units, will require an investment of between $15-$20 BILLION dollars. …[Continue Reading]