OTTAWA,
ON, June 27, 2024 /CNW/ - As Canada faces
a housing supply and affordability crisis, building a mix of
housing cost types is the most effective way to create a vacancy
chain and improve affordability over the long term, across all
households. This process, also known as filtering, is the
gradual transition of existing housing stock from higher-income to
lower-income households, as new housing stock is built and
vacancies are created.
New research released by Canada Mortgage and Housing Corporation
(CMHC), Understanding Filtering: A Long-Term Strategy to New
Supply and Housing Affordability, finds that as buildings
mature, rents tend to fall nearly 20% after 20 years compared to
new builds. As new market-rate and affordable housing stock is
brought online and existing units turn over, existing stock becomes
available and more affordable to lower income households through
the resulting filtering process. In other words, the new housing of
today will, over time, become the affordable housing option of
tomorrow.
Read the full article on CMHC's Housing Observer:
Understanding Filtering: A Long-Term Strategy to New Supply
and Housing Affordability
Listen to CMHC's Chief Economist, Bob
Dugan and Deputy Chief Economist, Aled ab Iorwerth, discuss
the research on CMHC's YouTube channel.
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SOURCE Canada Mortgage and Housing Corporation (CMHC)