According to Canada Mortgage and Housing Corporation chief economist Bob Dugan, a continued lack of inventory was likely to put upward pressure on home prices with a “much higher level of starts” required to improve affordability.https://t.co/wauZI2uG5n#mortgagenews

— Canadian Mortgage Professional Magazine (@CMPmagazine) May 1, 2023

How is the federal government incentivizing the development of multigenerational homes?

The growing trend appears to be one that the federal government is increasingly attuned to, with the parliamentary budget officer estimating that a new renovation tax credit to increase multigenerational supply will cost around $44 million over the coming five-year period.

That credit would allow households that create a secondary unit within their dwelling for occupancy either by the individual or an eligible relation to claim the lesser figure between 15% of qualifying expenditures and $50,000.

Boodoo said prioritizing those types of housing was part of an overall solution to the supply crisis, and that it should be a focus for the government over other proposed measures.

“I think [the inventory shortage] is a huge challenge because realistically, they can’t build houses fast enough,” he said. “The position by many, that purpose-built multi-unit housing being in apartment buildings is the solution, I think is a bandage on a wound. It’s not going to fix it.

“I totally disagree that this is the long-term solution. It is a short-term [fix] because while it will get people places to live, it will not give them stability in their living situation. Stability is ownership and people will seek that stability.”