Why demand-side interventions need to be paired with housing supply
OTTAWA, ON, April 15, 2026 /CNW/ – New analysis from Canada Mortgage and Housing Corporation (CMHC) explores how housing supply and housing demand interventions need to work together to address the housing affordability crisis.
Demand-side interventions, which directly support households in attaining a home, are often favoured because of their more immediate impact. The results can be measured more quickly than the creation of new supply, which take years to deliver. It is a delicate balance, since the basic rule of supply and demand dictates that if demand increases without increased supply, prices will rise.
In his latest article, CMHC’s Chief Economist, Mathieu Laberge highlights new modeling analyzing the tug-of-war between demand-side and supply-side housing interventions.
Quote:
“Helping more Canadians access homeownership is an important goal, but how we do it matters”, said Mathieu Laberge, Chief Economist, CMHC. “Without careful targeting and a matching increase in housing supply, demand-side measures can end up increasing costs for a broader group of households.”
Read the full article on CMHC’s website
Related links:
- Why Canada’s housing supply gap exists and how to fix it | CMHC
- Podcast Explores CMHC Fall 2025 Housing Supply Report | CMHC
- Beyond Toronto and Vancouver: Housing affordability challenges in Canada | CMHC
- Unlocking housing supply: Why scale really matters | CMHC
- Modernizing housing data: Closing the gap for better solutions | CMHC
- Framework for change: Productivity in housing construction | CMHC
For 80 years, CMHC has played a critical role as a national convenor to promote stability and sustainability in Canada’s housing finance system. CMHC’s mortgage insurance products support access to home ownership and the creation and maintenance of rental supply. CMHC research and data help inform housing policy. By facilitating cooperation between all levels of government, private and non-profit sectors, CMHC contributes to advancing housing affordability, equity, and climate compatibility. CMHC actively supports the Government of Canada in delivering on its commitment to make housing more affordable.
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SOURCE Canada Mortgage and Housing Corporation (CMHC)
