CMHC exceeds targets in national housing strategy
Canada Mortgage and Housing Corporation said it has exceeded its targets under the National Housing Strategy despite what the organization calls “significant economic challenges” in 2023.
The Crown corporation, charged with administering the country's national housing programs, released its annual report on Monday, revealing its progress in meeting the mandates of the NHS — a 10-year plan launched in 2017. According to the report, CMHC delivered 153,708 new, repaired, or assisted affordable housing units last year, surpassing the NHS's target of 120,000 units. The total number of new, repaired, or assisted units delivered through CMHC programs in 2023 was 494,319, well above the agency's target of 350,000 units.
“Rising interest rates to tame inflation and labour shortages hindered the country's ability to create much-needed housing supply,” said Michel Tremblay, the agency's acting president and chief executive officer. “Yet, even in these challenging times, we met our ambitious goals for 2023.”
CMHC attributes its success to several factors, including the success of its Affordable Housing Fund, ongoing collaboration with provinces and municipalities and the popularity of its multi-unit mortgage loan insurance product, MLI Select.
“Canada's housing challenges are serious, complex and urgent, but they are solvable,” Tremblay said.
He reiterated the agency's finding that Canada needs an additional 3.5 million homes beyond current projections to restore housing affordability, and emphasized CMHC's role in this effort.
The corporation's financial report showed a nine per cent drop in total income before income taxes compared to 2022, mainly due to a $210-million decrease in their Assisted Housing Activity caused by higher net losses on financial instruments.