OTTAWA, ON, Nov. 26, 2025 /CNW/ - As Canada works to overcome its housing supply and affordability crisis, new analysis from Canada Mortgage and Housing Corporation (CMHC) shows weak productivity in residential construction is a major driver of rising housing costs. Since the pandemic, weakened productivity has added an estimated $6 to $8 billion to construction costs, accounting for up to 20% of the increase in new home prices.

Framework for Change: Productivity in Housing Construction examines how this downturn in productivity is slowing the pace of new housing and outlines why improving efficiency through modern tools and technologies is essential to doubling housing starts.

The piece also draws lessons from other countries which have modernized their construction sectors through digital standards, innovation incentives, and streamlined regulation.

"Productivity is critical, especially in residential construction where Canada's challenges are most acute. Industry has a key role to play, and governments can support that progress by establishing effective and long-term policies to make it easier to build homes." - Aled ab Iorwerth, Deputy Chief Economist, CMHC.

Read the full article on CMHC's website: Framework for Change: Productivity in Housing Construction

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SOURCE Canada Mortgage and Housing Corporation (CMHC)