Federal funding brings skilled tradespeople as housing starts and affordability challenges persist
The federal government said it will add 1,500 skilled construction workers to its labour force, addressing a critical need in an industry facing persistently low builder sentiment amid a challenging housing market.
The Canadian Home Builders’ Association (CHBA) Q3 Housing Market Index (HMI) revealed a steep drop in builder confidence. The single-family HMI fell to 27.4 (down 2.5 points from the previous quarter), and multi-family sentiment declined four points to 28.5 – both indicators near record lows.
“The really low HMI scores, which show both low builder sentiment and an expectation of continued slower starts in the months ahead, emphasize the need for ongoing holistic change to policy at all levels of government to address affordability and supply,” said Kevin Lee, CEO of CHBA.
While Canada’s resale market is seeing increased activity in major cities, the new home market continues to struggle, particularly in Ontario and British Columbia. According to the report, few builders in Ontario currently view selling conditions as favourable.
In the Atlantic region, multi-family starts are still performing positively, but the sector accounts for less than five percent of national housing starts. Overall, builder sentiment is trending towards pessimism across most regions.
While total housing starts, including rentals, are steady for 2024, ownership-focused housing starts have dropped 17% in the first nine months of the year compared to 2023.
To support the construction industry, the federal government announced an investment of over $9 million to facilitate the entry of 1,500 internationally trained trades workers, particularly in construction, into the Canadian workforce.
Minister of employment, workforce development, and official languages Randy Boissonnault said the funding will go to the United Brotherhood of Carpenters and Joiners of America (UBC) to help foreign-trained workers secure Red Seal certification in trades such as carpentry, welding, and industrial mechanics.
This initiative is part of the Foreign Credential Recognition (FCR) Program, which received an additional $50 million through the 2024-2025 federal budget to address workforce gaps in construction and health care.
Read next: What's the solution to Canada's housing construction woes?
However, CHBA stressed that additional policy measures are critical to address persistent affordability and supply challenges.
“While lower interest rates and other policy measures being implemented should eventually help increase sales activity, still more will be needed, including at the provincial and municipal level, to turn the market around and get on track to significantly increasing housing starts and supply in the future,” Lee sad in the report.
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