By Ketki Saxena
Investing.com -- Canada Mortgage and Housing Corp. says that Canada is still well behind on the housing supply it needs in order to restore affordability.
While the projected housing supply gap has decreased marginally from last year Canada still needs to build about 3.5 million more houses by 2030 than what it is currently on track to build.
CMHC estimates that 3.45 million houses are needed beyond current levels of construction, compared with the 3.52 million cited in its outlook from June of last year.
On a provincial basis, the supply gap has improved moderately in Ontario, but the province continues to hold the lion's share of the shortfall. Ontario currently needs 1.48 million more homes than it is currently on track to build, down from the 1.85 million projected last year.
Meanwhile, the housing affordability gap has worsened in provinces like Quebec, Alberta, and British Columbia.
CMHC's affordability target is benchmarked to affordability levels in 2004, with the affordability target equating to housing costs taking up roughly 30% of income in most provinces.
In Ontario however, the affordability target stands at 37% of income, while in British Columbia it equates to around 44%.