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High construction costs complicate Canada’s push for larger housing supply

New rental units are reaching the market, but affordability gains remain elusive
High rise apartment buildings in Kingston, Ontario. (Getty Images/iStockphoto)
High rise apartment buildings in Kingston, Ontario. (Getty Images/iStockphoto)
By Mario LeFebvre
CoStar Analytics
August 17, 2026 | 7:32 P.M.

Canada’s housing affordability debate has long centred on one prescription: build more residences. But recent experience in several major markets suggests that adding new supply alone may not be enough, especially if the new homes are priced beyond the reach of many households.

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