Municipal charges and a lack of affordable housing for workers is severely frustrating the construction industry’s ability to get more housing to market, according to the Independent Contractors and Business Association (ICBA).

In a June 2023 report, ICBA describes the issue as a “crisis steamrolling from very bad to catastrophic.”

Across Canada, 5.8 million new homes will need to be built by 2030 to meet housing demand. This translates to roughly 830,000 new houses per year and a 40-per-cent increase in current supply, according to RBC data that is referenced in the report.

In 1972, Canada built 232,200 new homes. In 2022, with a higher population, only 219,500 homes made it to market.

In 1972, Canada built 232,200 new homes. In 2022, with a higher population, only 219,500 homes made it to market.

“How do we think we’re gonna get to [830,000] new homes this year and for the next six years following this, to meet that demand? It’s going to take a radical, wholesale change in how governments are approaching the approval and permitting of housing projects if we’re going to make a measurable dent into putting more supply into the market,” said Chris Gardner, president of ICBA.

In Vancouver it costs roughly $125,542 in municipal charges to build one high-rise unit. In comparison, such charges cost $48,654 in Surrey, according to the report.

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