The University of Ottawa’s report “Provinces hold the key” highlights that Canada needs more homes, but provincial policies are slowing the pace. The study finds that zoning regulations, lengthy permitting, outdated building codes, and a lack of risk mapping all limit the housing supply. Provinces vary widely in their response. Some lead with reform, while others lag or rely on municipal efforts. Fixing those bottlenecks could unlock thousands of new homes and solve Canada’s homebuilding crisis.
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What the report found
The Task Force for Housing and Climate, led by experts like Mike Moffatt of the University of Ottawa, graded federal and provincial housing policies. No province scored above a C+, while the federal government pulled a B. The report flags five key policy tools under provincial control:
- Zoning reform to encourage more density
- Faster permitting and reduced development charges
- Flood and wildfire risk mapping to guide safer builds
- Updating building codes for modern housing types
- Support for factory-built and missing-middle housing
These levers shape how quickly and affordably new homes can go up.
British Columbia, Québec, and Prince Edward Island earned the top grade (C+), but hiccups remain. B.C. struggles with slow permits and high development costs. In Saskatchewan and Ontario, mapping high-risk areas progressed, yet densification reforms didn’t match. Alberta showed strong housing starts in Calgary and Edmonton, but local governments, rather than provincial policies, drove urban momentum. Alberta leaders still support development, but need to align zoning, climate mapping, and building code improvements.
Overall, provincial responsibility is uneven and sometimes inconsistent across regions adding to Canada’s homebuilding crisis.
The University of Ottawa argues that these policy decisions create the most meaningful change in housing timelines and costs. It calls out provinces for avoiding scrutiny while cities and Ottawa face public pressure.
Key obstacles identified include:
- Zoning restrictions that prevent multilevel housing and missing-middle options.
- Slow permitting and rising development charges that inflate costs.
- Lack of flood and wildfire mapping is leaving builders unable to site homes with confidence.
- Old build codes that block prefab solutions and modern designs.
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Every delay or extra cost tightens margins and discourages builders, so improving these areas could mean more housing built faster.
The report suggests several reforms:
- Zoning reform: Remove single-family restrictions, encourage multiplex and secondary suites near transit.
- Simplified permitting: Target 12–18 month timelines; include development-charge reform.
- Hazard mapping: Require zoning informed by flood/fire-zone data.
- Code updates: Green-light factory-built housing, panelized construction, mass timber, and modern construction methods.
- Support missing-middle: Offer incentives for duplexes, triplexes, etc., in all neighbourhoods.
Some provinces are testing these ideas: Ontario’s Bill 17 aims to fast-track permits and simplify fees. B.C. and P.E.I. have begun permitting reforms, but slow implementation has hurt the impact.
The University of Ottawa study stresses that provincial policy change unlocks local and federal progress. Municipalities benefit from federal funding like the Housing Accelerator Fund but rely on provincial frameworks to implement zoning and code updates. Provinces that update their levers could enable more housing starts quickly and at scale helping to solve Canada’s homebuilding crisis.
With the current housing affordability crisis plaguing Canada, it’s the provincial governments that ultimately wield the power to overcome this challenge. Municipalities can only move as fast as provincial policies allow. Ultimately, Canadians hoping for affordable homes will have to look at their provincial governments if they want to see real change be implemented.
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