Government homebuyer incentives could require up to 28,000 new homes annually to offset price pressures: CMHC

Canada's housing agency warns that demand-side policies like tax incentives or expanded mortgage access can raise home prices if not matched by increased housing supply. Economic modeling shows targeted support needs about 7,800 additional housing starts annually, while broad-based support may require around 28,000 more units per year to avoid price hikes. The effectiveness of these measures depends on how quickly supply can respond.