Industry observers cite labour shortages and regulatory issues as key challenges
Newfoundland and Labrador needs to build 60,000 extra new homes over the next six years to meet demand, but industry experts are skeptical that the province can achieve this.
To meet the target, the province needs to construct 10,000 more homes per year beyond current levels until 2029 to satisfy housing needs, according to the Canada Mortgage and Housing Corporation (CMHC). However, the province's record year in 2012 saw just under 3,900 housing starts.
"I definitely think it's going to be a reach, and that is putting it mildly," said Alexis Foster, executive director of the Canadian Home Builders' Association's Newfoundland and Labrador branch.
Several obstacles stand in the way of such a massive construction ramp-up, industry experts said. These include labour shortages, restrictive development regulations, and the ability to supply varied housing types beyond single-family dwellings.
"We're challenged with issues in development regulations, and we're challenged with a labour shortage," Foster told CBC News. "It's definitely a high number, and I don't know if it's realistic."
Curtis Mercer of K&P Contracting echoed these concerns. "How do we build more with [fewer] people?" he said. Mercer emphasized the need for densification to meet demand.
"What we need to keep up with demand is densification: more units on one lot, and a mix of all types of houses — like duplexes, high-rise and single-dwelling homes — are all needed," Mercer said.
Read next: Top mortgage executive sceptical of Budget 2024's housing strategy.
Andrew Street, owner of Street Property Development, suggested that the construction industry must embrace innovation to achieve these goals.
“We need to move into modular and factory-built-type setups so that we're actually getting things moving quicker in a more controlled environment,” Street said.
Street also highlighted the importance of addressing the labour shortage by encouraging high school students to consider careers in construction.
"You can have a really good career in the construction field and make really good money and have good benefits," he said.
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