Housing in the Spotlight: CMHC’s Commitment to Canadians in 2024

The housing landscape in Canada has become a pressing issue, with significant challenges facing communities nationwide. As Chair of the Canada Mortgage and Housing Corporation (CMHC) Board of Directors, Don Iveson emphasized the heightened importance of housing in 2024, calling it a “critical topic” that consistently captured headlines. Collaborative efforts among policymakers, developers, and communities aimed to address the ongoing housing challenges that had gripped the nation.

Delivering Results for Canadians

The challenges Canadians faced this year were significant: rising rents, increased mortgage renewal rates, and ongoing struggles for vulnerable populations. Coleen Volk, CMHC’s President and CEO, underscored these pressing issues while highlighting the agency’s proactive measures to deliver results across its three core activities.

1. Delivering Commercial Solutions

In response to the evolving needs of 2024, CMHC tailored its commercial solutions to foster affordable housing development. The MLI Select product, which provides incentives for developers to construct affordable rental units, saw remarkable uptake. This initiative reflects CMHC’s commitment to ensuring that Canadians can find safe and affordable housing options. Additionally, CMHC’s securitization programs played a vital role in maintaining liquidity for mortgage lenders. This essential support allowed Canadians continued access to financing even amid prevailing economic uncertainties.

2. Delivering Government Programs and Priorities

CMHC’s initiatives extended beyond mere financial solutions; they also included significant commitments to government programs designed to tackle the housing crisis head-on. The Apartment Construction Loan Program led to the creation of over 56,000 new rental housing units, while the Affordable Housing Fund contributed nearly 42,000 additional affordable units.

Moreover, CMHC’s efforts under the Housing Accelerator Fund culminated in agreements with 215 municipalities, paving the way for 114,000 fast-tracked housing units by the end of 2024. The introduction of the Co-op Housing Development Program aimed to bolster cooperative housing initiatives, representing a pivotal shift toward diverse housing solutions.

3. Building for the Future

A cornerstone of CMHC’s mission lies in its commitment to research and informed decision-making. According to Volk, the corporation prioritized the exploration and understanding of Canada’s regional supply challenges, ensuring that their strategies are not only responsive but also anticipatory. By delving into local market dynamics, CMHC aims to provide insights that drive effective policy choices and housing solutions.

Impact by the Numbers

Michel Tremblay, CMHC’s CFO and Senior Vice-President of Corporate Services, provided a detailed overview of the economic conditions that shaped 2024. The landscape was defined by rapid population growth, rising interest rates, and shifts in housing activity. Despite these formidable challenges, CMHC achieved significant milestones:

• Over 500,000 homes were created, repaired, or supported, marking a robust increase from the previous year.
• Nearly 300,000 of these homes specifically targeted markets grappling with critical rental housing shortages, exceeding initial targets and adding an impressive 40,000 units more than in 2023.
• Close to 50% of the supported homes were designed to be climate-compatible, not only surpassing previous achievements but also doubling original sustainability goals.

Moreover, CMHC ensured financial stability for mortgage institutions through its securitization offerings. The agency guaranteed $165 billion in mortgage-backed securities and $60 billion in Canada Mortgage Bonds, evidencing unwavering demand in the housing market.

Conclusion

As 2024 unfolded, the CMHC’s multifaceted approach to tackling Canada’s housing crisis reflects a commitment to delivering impactful solutions despite challenging conditions. Through innovative commercial solutions, strategic government programs, and research-driven insights, CMHC has positioned itself as a pivotal player in shaping the future of housing in Canada. While challenges remain, the results achieved thus far signal a hopeful trajectory, underscoring the importance of collaboration in creating accessible, affordable housing for all Canadians.