Regulations, 'fragmented' construction sector holding back housing starts: CMHC

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A study by Canada's national housing agency says housing starts aren't keeping pace with available residential construction resources due to restrictive regulations and a 'highly fragmented' industry.

A study by Canada's national housing agency says housing starts aren't keeping pace with available residential construction resources due to restrictive regulations and a "highly fragmented" industry.senior vice-president of housing economics and insights, said Canada has the potential to build more than 400,000 homes per year -- around two-thirds higher than the 240,267 housing starts last year.

"If you look 20 years ago, we built housing starts with a lot less labour, and so that begs the question: why? I haven't heard a compelling response to that," said Laberge. "What we see is the highest performers in that ratio are also those that have the more flexible regulation," he said. The report said consolidation could help generate economies of scale and enable some production savings to be passed on to Canadians.It said provinces, territories and municipalities will also need to step up, dubbing the plan a "call to action" for various levels of government to work together and create incentives that will spur housing development.

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