Construction and rental housing go hand in hand Construction and rental housing go hand in hand
By David Gargaro
Now that the federal election is over and Canada has a new prime minister, it’s time to turn to other important matters. And that is the development of more housing to help solve Canada’s housing crisis. Canada’s construction industry is integral to getting more housing built and addressing the affordable housing shortage.
Prior to the election, the Canadian Construction Association (CCA) launched the Construction for Canadians campaign, sending the message to all political leaders that investment in construction is essential to Canada’s future. The Canadian Home Builders’ Association (CHBA) has long advocated for policies that support housing affordability, increase the housing supply, and remove barriers to construction. Canada’s rental housing industry should pay attention, as the construction industry’s challenges (e.g., lack of investment, workforce shortages, onerous government procurement processes) directly affect the availability, affordability, and quality of Canada’s rental housing.
Rental housing depends on construction
Construction affects every element of the rental housing industry. The construction industry is integral to building and maintaining everything from multifamily property developments to essential infrastructure including roads, water, and power systems. Having a healthy, robust construction sector is essential to building sufficient rental housing supply to meet the growing demand for affordable housing.
The construction sector employs more than 1.6 million Canadians and generates $151 billion in economic impact, which is approximately 7.5 per cent of Canada’s GDP. However, much like the rental housing industry, the construction sector faces significant challenges. And these challenges mean longer construction times, higher costs, and less skilled labour, which negatively affects the housing supply, especially within census metropolitan areas (CMAs).
Investing in construction affects rental housing
Why should the rental housing industry support more investments in the construction sector? A strong construction industry means:
• More rental supply: The shortage of multifamily rental units, especially in CMAs, is partly due to limited construction capacity.
Investing in the construction sector would speed up development timelines and help to support demand.
• Modernized infrastructure: Building infrastructure that supports trade (e.g., ports, highways) helps with the transportation of building materials, lowering materials costs, and reducing project delays. Better infrastructure also improves livability in rental communities.
• Skilled workforce: Every industry is facing challenges with attracting and retaining skilled employees. Many rental housing projects are delayed or becoming more costly due to labour shortages. Supporting construction workforce development ensures the supply of skilled tradespeople to complete rental housing projects on time and on budget.
• Updated procurement policies: The rental housing industry is aware of how bureaucratic red tape can impact development schedules and rental housing supply. Outdated procurement methods can affect public-private partnerships and construction initiatives. Modernizing processes would improve efficiency for rental housing developers.
