What the CMHC’s New Housing Goals Mean for Real Estate Investors

Canada’s housing crisis has reached a boiling point—and the federal government is responding. In 2023, the Canada Mortgage and Housing Corporation (CMHC) laid out a bold target: build an additional 5.8 million new homes by 2030 to restore housing affordability across the country.

For real estate investors, this announcement is more than a policy shift. It’s a signal of where the market—and opportunity—is heading.

Let’s break down what CMHC’s goals mean for investors and how you can strategically align your portfolio with Canada’s evolving housing landscape.

1. What Are CMHC’s New Goals?

The CMHC's central target is restoring housing affordability to 2004 levels by 2030. To get there, Canada needs to build 5.8 million new homes—on top of what’s already forecasted. That means doubling or tripling housing construction in key markets.

The agency has also emphasized:

• "Missing middle" housing (e.g. duplexes, triplexes, townhomes)

• Transit-oriented development

• Increased density in urban centers

• Support for modular and prefab construction

CMHC is pressuring municipalities to overhaul zoning bylaws and remove red tape—creating faster approvals and more buildable land in cities.

2. Why This Matters for Investors

This is more than a housing plan—it’s a complete reimagining of how and where Canadians live. And it opens multiple paths for investors.

Increased Zoning Flexibility

Major Ontario cities are now allowing:

• Four units on single-family lots (e.g. Toronto, Hamilton)

• Laneway or garden suites

• Secondary and tertiary suites by-right

This allows you to add value without buying more land—ideal for buy-and-hold investors.

Development Incentives

Expect to see more grants, rebates, and low-cost financing for builders who:

• Create rental housing

• Use energy-efficient or affordable designs

• Build “missing middle” housing

Rising Demand in New NodesAs density increases near transit corridors, emerging neighborhoods with new zoning approvals will see appreciation and rising rents.

3. Risks to Be Aware Of

Of course, change comes with friction.

Policy Volatility

Housing remains a political issue. Changes in government or economic conditions could shift priorities or funding mid-stream.

Rent Control Debates

As affordability worsens, more provinces may expand rent control. Know your rights and limits before investing in long-term rentals.

Construction Costs & Capacity

Labor shortages and rising material costs could slow progress. If you’re planning to build, expect longer timelines and higher budgets.

4. Where Should Investors Focus?

• Urban infill: Convert underused lots or single-family homes into 2–4 units

• Transit corridors: Buy near LRT, GO Train, and future subway extensions

• Accessory dwelling units (ADUs): Leverage your backyard for extra income

• Modular builds: Explore prefab duplexes and laneway homes for speed and cost control

Final Thoughts

CMHC’s new housing roadmap is a wake-up call—and a call to action. It will reshape how and where we invest in Canadian real estate over the next decade. For forward-thinking investors, there’s opportunity in adapting early and becoming part of the solution.

At Greenell Capital, we help investors identify municipalities with favorable zoning, access financing for new builds, and navigate Canada’s evolving housing ecosystem with confidence.