Canada’s housing affordability crisis underscores the urgent need for a substantial increase in supply, with discussions shifting towards the methods to achieve this expansion. Key to addressing this issue is enhancing productivity in residential construction, not only during the building phase but across the entire housing supply chain. Labour productivity faces challenges from the retirement of baby boomers and a shortage of specialized labour, impacting the sector nationwide. Moreover, the unique nature of housing production, which lacks the advantages of mass production and relies on a complex chain of activities, presents significant obstacles to achieving productivity gains. The residential construction industry remains notably fragmented compared to other sectors, limiting the potential for investment in research and development and efficient project management. However, the rise of technologies such as AI, blockchain contracts, 3D modeling, and building automation offers avenues for optimization, particularly for larger firms capable of harnessing these advancements. Addressing productivity also requires considering the broader “supply” productivity, which encompasses critical pre-construction phases. The public sector plays a crucial role in improving productivity through direct investment, fiscal incentives, targeted policies, and fostering venture capital. Innovative local initiatives, like the City of Kelowna’s AI chatbot for processing construction permits, exemplify the potential for technology to streamline regulatory processes. Ultimately, tackling the housing supply issue with increased productivity necessitates a comprehensive approach, recognizing the industry’s unique challenges and leveraging both private and public sector efforts to facilitate a more efficient, inclusive housing market.

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