The report, released Monday by Re/Max Canada, looked at active listings in the month of July between 2012 and 2022 in eight major metropolitan areas across Canada. It found that seven of those eight urban centers saw fewer active listings in July 2022 compared to the 10-year average for the month. “Population growth and household formation have played a significant role in depleting inventory levels from coast to coast over the past decade, causing chronic housing shortages in major urban centers that have led to mini ‘boom’ and ‘bust’ cycles,” said Re/ Max Chairman Christopher Alexander in a press release. “If we don’t move now to build more housing in the current lull, it’s expected that this same scenario will continue to re-occur again and again.” The Halifax-Dartmouth area had the biggest drop in listings. Compared to the 10-year average, the region had 65.5% fewer listings in July 2022, although the report notes that home-buying activity has slowed thanks to higher interest rates and a slowdown in immigration from other parts of Canada . The Ottawa-Gatineau region saw a 41.9% drop in listings from the 10-year average, while listings in the Montreal region were down 40.16%. Re/Max warns that thanks to increasing immigration from Ontario to Quebec, as well as interest from American buyers, “current inventory levels will not support future growth” in Montreal. The number of listings in Calgary was 26.1 per cent below the 10-year average, while in Winnipeg it was 23 per cent below. Re/Max notes that due to the migration of Ontarians and British Columbians seeking cheaper housing, Calgary’s housing stock has “fallen to its lowest level in a decade.” Greater Vancouver saw the number of listings drop 16.1 per cent compared to the 10-year average. The region saw an average of 12,792 July listings between 2013 and 2022, which is still well below the 10-year July average of 14,352 between 2003 and 2012. It’s a similar story in the Greater Toronto Area. July 2022 listings were 6.8 percent below the 10-year average of 16,458 units. This is also well below the 10-year average between 2003 and 2021, which saw 21,243 listings. Re/Max also notes that the population in the GTA grew by 21 percent between 2006 and 2021. “We have been here in the past. The actions we take now will determine our future. Currently, there is insufficient supply to accommodate future growth,” the report said. The Hamilton-Burlington area in Ontario was the only market to report an increase over the 10-year average. The area saw 3.2 per cent more listings in July 2022 compared to the 10-year average as buyers from Toronto, as well as new immigrants, continue to drive population growth. In June, a report from the Canada Mortgage and Housing Corporation said Canada’s housing supply needs an additional 3.5 million homes beyond what is already projected to be built by 2030. But Alexander believes Canada will “probably need more than CMHC’s assessment to create the desired level of affordability’. “During this window of softer demand, building efforts should be up, not down. The knock-on effect is squeezing rental markets and contributing to ever-increasing levels of homelessness across the country,” he said. The Re/Max report says policymakers should take steps to speed up housing construction, such as lowering development fees, relaxing zoning restrictions and approval processes, and even leveraging partnerships between governments and developers. “The problem is that housing development is a slow process, and our experience tells us that the only thing slower can be government processes,” Alexander said. “Removing barriers and reducing red tape is essential. A crisis is looming, but the outcome is not unacceptable. There is a short runway to reverse course before the effects become all too real for Canadian homebuyers and renters.”
