Canada’s Housing Crisis: Which Provinces Are Helping or Hurting Investors in 2025?
- Wayne Hillier
- May 30
- 5 min read
By Wayne Hillier, Real Estate Investing Masters
May 30, 2025 | Edmonton, Alberta
Canada doesn’t just need more homes. We need homes that people can actually afford. Homes that are energy efficient, built faster, and located in places that won’t flood or burn down a decade from now. That’s the message behind a new report just released: the Report Card on More and Better Housing.
This report evaluates how each level of government is performing in the push to build 5.8 million new homes by 2030 that are affordable, low-carbon, and resilient. And the results? They might surprise you.
The Federal Government Is Doing the Most
Of the 11 jurisdictions reviewed, the federal government scored the highest with a solid B grade. They’ve introduced programs like the Housing Accelerator Fund, reformed taxes to support rental construction, and made public land available for housing. They’re also supporting innovation with factory-built housing and financing programs that target rental supply.
That said, the report also points out some weak spots. The Housing Accelerator lacks transparency, and there’s no national climate risk mapping program in place yet. But overall, Ottawa is leading the charge better than anyone else right now.
Alberta Is Falling Behind
If you’re an investor in Alberta, here’s the part that stings. Alberta ranked dead last. The province got a D+ grade, with low scores across almost every category.
Even though housing starts are strong, it’s mostly because of what municipalities like Edmonton and Calgary are doing, not the provincial government. According to the report, Alberta has done less than most provinces to legalize density, improve building codes, support innovation, or prevent development in high-risk areas.
In short, cities are pushing forward, but the province isn’t pulling its weight.
Legalizing Density Is the Top Priority
If there’s one thing the report repeats over and over, it’s this: allowing for more housing types in existing neighbourhoods is the fastest, cheapest, and smartest way to tackle housing shortages.
That means legalizing gentle density. Think fourplexes, laneway homes, mid-rise apartments. Building where infrastructure already exists helps reduce emissions, lower taxes, and improve affordability.
The challenge is that even when these housing forms are technically allowed, high development charges and long approval times can still make them nearly impossible to build.
That’s why Edmonton’s move to automate permits in 2024 is such a big deal. The new system cuts approval times by up to 95 percent. That’s leadership in action, and it sets a standard other cities can learn from.
Better Building Codes Could Save Us Billions
Building standards matter. The report calls on provinces to adopt the higher tiers of the National Building Code and prioritize energy efficiency, durability, and innovative designs like single-egress apartments.
British Columbia leads the pack here. They’ve already legalized more efficient housing forms and committed to net-zero energy codes by 2032. Alberta, on the other hand, is still dragging behind with a very basic update in 2024 that doesn’t go far enough.
The benefit of better building codes isn’t just about climate goals. It’s about savings. Adopting the top-tier energy codes could save Canadians $3 billion annually in utility bills and reduce emissions by 3 megatonnes every year.
Factory-Built Housing: A Missed Opportunity
Canada’s homebuilding productivity has flatlined. Even though we have more construction workers than ever, we’re building the same number of homes we were 30 years ago.
The solution? Embrace modern methods. Factory-built housing like prefab and modular builds can slash timelines and costs while improving quality control. The federal government is investing in this, but Alberta is barely in the game.
A simple briefing document was released last year, but there’s been no real action or investment. Meanwhile, other provinces are already partnering with manufacturers to scale up.
As investors, this is something to watch closely. The builders who adopt these innovations early could gain a huge edge.
Climate Risk Is Not Being Taken Seriously Enough
With extreme weather becoming more common, one thing is clear: building in flood zones or wildfire-prone areas is incredibly risky.
In 2024 alone, Canadians saw nearly $20 billion in insured and uninsured losses due to climate events. And yet, provinces like Alberta still don’t have clear policies in place to prevent construction in those high-risk areas.
The report urges the federal government to create a national hazard map and push provinces to use it. Without strong land-use policy, affordability gains could be wiped out overnight by a flood or fire.
What About Non-Market Housing?
Not every family can afford market rents. That’s why the report highlights the need to fill in market gaps with non-market and below-market housing. Prince Edward Island leads the country in this area, while Alberta scored middle of the pack with a C grade.
Even though Alberta’s rents are lower than BC or Ontario, core housing need is rising, and the province has not done much recently to address it.
What Real Estate Investors Should Take From This
If you’re investing in real estate right now, this report card matters more than you might think. It shapes everything from zoning to development timelines to construction costs.
Here are four things to keep in mind:
Watch the policy landscape. You need to know what’s happening provincially and federally if you want to stay ahead of the curve.
Support smart zoning reform. Density isn’t a threat. It’s the future of sustainable, cash-flowing investment.
Pay attention to climate risk. Avoid areas that could face rising insurance costs or long-term devaluation.
Embrace innovation. Factory-built housing is coming whether we like it or not. Be one of the first, not the last.
Canada’s housing future depends on better coordination between cities, provinces, and Ottawa. But as investors, we don’t have to wait. We can be part of the solution right now by building smarter, advocating locally, and making investments that actually make a difference.
Listen to The Real Estate Investing Morning Show for more on this topic:
– Hosted by Wayne & Gabby Hillier
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