Developers, investors, observers, and other stakeholders are expecting red tape and supply issues to play larger parts in the Canadian housing market next year, according to the latest Emerging Trends in Real Estate study published by PwC Canada and the Urban Land Institute.
Industry players cited construction, material, and land costs, along with approval processes, as the top concerns in 2020.
Respondents emphasized that much of these can be resolved on the supply side, where governments at all levels can make a significant difference.
“There is an opportunity to do more as governments and the real estate industry embrace the mutually-beneficial approaches to housing supply issues through transit-oriented development policies and increased density allowances around transit hubs,” the report stated.
This is especially valuable in the context of ever-growing housing prices.
“Governments must recognize that increased supply can help address the affordability issue and be willing to embrace innovative ways of unlocking a supply-constrained market,” PwC Canada national real estate leader Frank Magliocco stated.
ULI Toronto executive director Richard Joy added that current measures like the B-20 stress test do not solve the more fundamental problem of availability.
"It is clear that we need greater innovation across the spectrum of land use, fiscal and technological tools to broaden the supply of housing options, especially in Canada's tightest markets," Joy said.