Homebuilding Sector Faces New Headwinds
- Clearview Insider
- May 6
- 1 min read
Canada’s homebuilding industry entered 2025 with renewed optimism, but rising costs, labour shortages, and tariff uncertainty are stalling progress. According to Kevin Lee, CEO of the Canadian Home Builders’ Association, recent U.S. trade tensions and fears of Canadian counter-tariffs have already caused a sharp drop-in buyer activity. In February, Greater Toronto home sales fell 28.5% month-over-month, the steepest decline since the 2008 financial crisis.
While cities like Edmonton are benefiting from faster permitting and lower development charges, many urban centers remain hamstrung by policy and cost barriers. Labour constraints are compounding the challenge, with 22% of the workforce nearing retirement and 130,000 new workers needed. Lee notes that prefab housing could offer long-term solutions, but market and policy shifts are essential to unlocking broader affordability.
Reference: Campbell, C. (2025, April 30). Canada needs to build more housing. But with all the Trump chaos, that’s not top of mind. The Globe and Mail.
Connect with ClearView: Interested in how these national trends could impact your development strategy in Calgary? Contact us at info@cvpartners.ca — we’re here to help you explore how ClearView can support your commercial real estate goals.