According to a recent research, Ontario will require one million additional homes over the next ten years to address a housing shortage.
According to the national research network Smart Prosperity Institute, Ontario will require one million homes to accommodate all potential buyers or tenants, based on expected population growth in the province and the already existing housing supply gap.
“This increased demand, from young Ontarians that have started to, or would like to start, a family with no change in supply, contributed to rising home prices and a shortage of family-friendly housing across Southern Ontario before the pandemic,” states the report. “These are households that would have been formed, but were not, and had to find alternate arrangements (e.g. adults in their 20s and 30s living with parents rather than starting their own households),” the report says.
Ontario’s population grew by approximately one million people between July 2016 and July 2021, making it the fastest-growing province in the country. In comparison, the province had only grown by 600,000 people in the previous five years.
According to the Smart Prosperity Institute, there are currently 64,714 would-be households in need of housing.
“The number of households that are actually formed will be determined, in part, by a set of policy decisions including immigration policy, labour policy, rules governing international students and, of course, housing policy. This estimate of one million additional households should be taken as what could be expected in the absence of policy changes,” says the report.
According to the Ontario Ministry of Finance’s predicted population growth of 2.7 million over the next ten years, the number of households in need of housing will increase by 911,347, necessitating the construction of one million new dwellings.