OTTAWA – The Parliamentary Budget Officer estimates Canada needs to build 3.2 million new homes in the next decade to close the housing gap but isn’t currently on track to do that.
The latest PBO report estimates the number of new home builds will be higher over the next three years but will gradually return to historical averages after that.
It says it expects an average of 227,000 new homes to be completed a year for the next decade.
At the same time it expects a sharp decline in the number of new households being formed after Canada slashed its immigration targets.
The increased construction and decreased demand should combine to correct the historically low vacancy rate that contributed to soaring home prices in recent years.
The PBO says it expects about 2.5 million homes will be built over the next decade, which is shy of the 3.2 million it says are needed to close the housing gap.
This report by The Canadian Press was first published Aug. 26, 2025.
