A new analysis by the national housing agency estimates Canada could add 30,000 more housing starts annually by eliminating interprovincial trade barriers.
Canada Mortgage and Housing Corp. says that would push the total number of annual housing starts close to 280,000 over time, which would represent a “meaningful step towards fixing Canada’s housing supply gap.”
CMHC chief economist Mathieu Laberge says that in order to achieve this, Canada must reduce interprovincial constraints holding back west-to-east transportation infrastructure, which would help maximize the use of domestic materials across the country.
Laberge cites a survey by Statistics Canada showing close to half of Canadian construction firms blame distance and transportation costs as the main reasons for not purchasing goods or services from suppliers in another province or territory.
Eliminating interprovincial trade barriers was a focal point of Prime Minister Mark Carney’s campaign during the spring federal election, and his government has since passed Bill C-5, an omnibus bill that reduces federal restrictions on interprovincial trade while speeding up permitting for large infrastructure projects.
Experts have said that law is only the first step of the process as it deals with red tape put up by the federal government, rather than rules set by the provinces, which have the most authority in this area.
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