The House of Commons Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities met on May 4, 2026, as part of its study on housing starts in relation to federal programs, hearing from Kevin Lee, Chief Executive Officer of the Canadian Home Builders' Association, and Mike Moffatt, Founding Director of the Missing Middle Initiative.
Kevin Lee stated that while total housing starts have been above historic averages, the share intended for ownership has fallen sharply from 69% in 2021 to 49% in 2025, with purpose-built rental now dominating, and that 88% of Canadians under 45 want to own a home. He recommended a comprehensive plan to boost ownership housing, including fixing the mortgage stress test, pausing the 2025 building code which adds $50,000 to $100,000 per home, and ensuring federal-provincial deals reduce taxes like HST and development charges, noting that the Ontario deal has stalled and no other provinces have signed on.
Mike Moffatt argued that the federal target of 500,000 annual housing starts by 2035 is a means, not a goal, and lacks a clear middle-class housing objective, such as ensuring dual-earner couples in their thirties can afford an entry-level home. He recommended that CMHC track excavations as a real-time indicator, as the U.S. and Australia do, and called for certainty on immigration policy beyond 2027, warning that a recent report advocating a 2060 target would cement intergenerational inequality.
During questions, Lee and Moffatt agreed that construction costs and consumer confidence are major barriers, with Lee emphasizing that high development charges and taxes in Ontario and B.C. are crushing ownership starts, while Moffatt noted that the slowdown in purpose-built rental is partly due to uncertainty over future immigration levels. Lee disagreed with any suggestion that Build Canada Homes alone can solve the crisis, stating it will produce only about 49,000 units over many years, far short of the 500,000 annual starts needed, and Moffatt added that the program lacks key performance indicators.
On building codes, Lee called for a pause on the 2025 code, citing lateral load requirements that add engineering costs without evidence of failure, and noted that Australia has already done this, while Moffatt supported harmonization but stressed the need to get the code right. On labour, Lee said the spring economic update's training for 100,000 skilled workers is a step, but residential construction relies mostly on non-union, non-Red Seal trades, and Moffatt emphasized retaining existing workers by creating a stable investment climate.
The committee also discussed federal-provincial coordination, with Lee urging federal leadership to align all levels of government, and Moffatt suggesting that provinces with low development charges should not be penalized in federal deals. No procedural motions or votes occurred during the meeting.
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