Labour shortage hurts housing plans

Economists' report finds Ottawa's 'optimistic' targets unlikely to be met

- SAMMY HUDES

The Canadian Home Builders' Association says more than one million more construction workers are needed to meet the Canada Mortgage and Housing Corp.'s target.

A new report by Desjardins warns Ottawa’s efforts to kick-start new housing supply likely won’t be enough to meet “optimistic” targets due to regulatory hurdles and constraints on labour, materials and financing.

The report, released Tuesday by economists Marc Desormeaux, Kari Norman and Randall Bartlett, highlighted the ongoing labour shortage in the construction industry as the “primary constraint” holding back new housing starts.

The federal government laid out its Canada Housing Plan earlier this year vowing to unlock 3.87 million new homes by 2031 through measures such as new tax incentives and efforts to build more housing on public lands.