Homeownership Dreams Dimming Amid Policy Shortfalls and Industry Layoffs

16-Nov-2025

.

The Canadian Home Builders’ Association (CHBA) Housing Market Index (HMI), published quarterly, has dropped to record lows in the third quarter.

The association says these numbers reflect growing concern among builders over sales, trade uncertainty, and a lack of supportive government policy for homeownership.

CHBA’s single-family HMI reached a low of 23.3 out of 100, while the multi-family HMI was 16.8. CHBA says this points directly to fewer housing starts ahead for Canadians hoping to own a home, and big challenges for the government’s pursuit of doubling housing starts.

So far in 2025, housing starts for ownership are down nearly 10,000 compared to last year. CHBA says this decline is driven by low consumer confidence, rising construction costs, and punitive taxation at all government levels.

Despite federal promises to address the housing shortage, which in turn will support affordability, CHBA says federal policy is currently primarily focused on rental housing and government-subsidized units, with limited recent action on homeownership, especially for younger generations.

“If we don’t continue to reform housing policies to better support ownership—including reducing taxation—homeownership rates will keep falling. Doubling housing starts to 500,000 units per year is impossible if middle-class Canadians can’t afford homes,” said CHBA CEO Kevin Lee.

CMHC’s Fall 2025 Housing Supply Report underlines the issue: “The drop in ground-oriented construction in high-cost markets may signal a lasting decline in homeownership rates and a prolonged slowdown in housing starts.”