A new study from Concordia University’s John Molson School of Business reveals that boosting housing affordability is not only a social necessity but also a powerful economic growth strategy. Titled Build and Benefit: How Homebuilding Incentives Can Pay Off for Cities, Homeowners and Local Economies, the report positions homebuilding policy reform as a fiscally responsible investment with measurable returns for both governments and communities.

Led by Dr. Erkan Yönder, Associate Professor of Real Estate and Finance, the research emphasizes that high housing costs impact more than personal finances—they also hinder business productivity and reduce municipal budget efficiency. The study calls for urgent action, especially as Canada faces mounting affordability pressures in key urban markets.

To reverse current trends, the nation must more than double 2024’s housing construction rate, building at 3.5–4% of the current supply annually. Cities like Toronto, Montreal, Vancouver, and Calgary must significantly scale output—by 96,000, 77,000, 44,000, and 24,000 units respectively—to make a meaningful dent in housing demand.

The study introduces a Mortgage Pressure Index, which illustrates that a 20% reduction in approval delays can improve housing affordability by 17%. Improved affordability would enhance household disposable income, drive local economic activity, and increase municipal revenues. Additionally, improving affordability in large cities could reduce home prices in surrounding regions by up to 15%, easing pressure on peripheral markets.

Yönder’s prior research also found that streamlining approval processes and reducing development input costs are key levers for faster implementation. With targeted incentives and regulatory reforms, municipalities can unlock growth, attract investment, and deliver long-term benefits to residents and local businesses.

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