Collaboration is the key ‘tool in the toolkit’: Five takeaways on why solving Canada’s housing crisis requires a historic effort across government and industry

In a recent special edition of Hub Dialogues, presented in partnership with RBC, Stephanie Shewchuk, director of housing policy at RBC Thought Leadership, and John Stackhouse, senior vice-president in the office of the CEO, discussed Canada’s housing affordability crisis and the systemic changes required to address it. They argued that solutions must move beyond simplistic narratives and embrace collaboration across all levels of government and the private sector. The conversation, hosted by Sean Speer, The Hub’s editor–at-large, delved into the causes of the housing shortfall, policy barriers, and potential innovations. Below are five key takeaways from their discussion. 1. The scale of the shortfall is historic—and so must be the response Canada needs to double its annual housing construction to approximately 500,000 units per year to restore affordability, according to estimates from CMHC and the Parliamentary Budget Office. Shewchuk noted that this target is daunting, given that the country has “never exceeded about 270,000 units per year.” Achieving such a pace would require unprecedented changes in labour, materials, regulation, and financing. The goal, she stressed, is not just to hit a number but to understand what it will take to get there—and to recognize that “affordability” itself is a deeply personal and localized experience, not a one-size-fits-all metric. 2. Development charges are a primary bottleneck—but they’re a symptom of a bigger problem Stackhouse identified municipal development charges—fees levied on new construction to fund local infrastructure—as “the most acute” challenge, particularly in high-cost markets like Toronto and Vancouver. These charges have become “an extraordinary tax on the building of houses,” adding significant cost to new homes. However, Stackhouse cautioned against vilifying municipalities alone. He traced the issue back to the 1990s, when federal and provincial downloading left cities underfunded. “If we’re not going to come up with alternatives for municipalities to finance what they do, I don’t think we can blame them for turning to things like development charges,” he said. Solutions could include exploring municipal bond markets, similar to those in the U.S., to finance infrastructure without overburdening new homebuyers. 3. Housing must be understood as a continuum, not a series of silos Both experts emphasized that housing policy often fails because it targets one segment—such as affordable housing—in isolation. “When you have a bit of a shotgun approach to a complex, multivariable challenge like housing…that doesn’t solve the housing crisis,” Stackhouse said, “because there are so many other parts of the continuum.” Most Canadians move between housing types throughout their lives, from rental to ownership, or from denser urban housing to suburban homes. A functional system requires balance across the entire spectrum, ensuring fluidity and adequate supply at each stage. Shewchuk added that policies must be informed by both objective data and “self-reported” lived experience to grasp what affordability truly means in different communities. 4. Innovation in construction methods is critical, but needs systemic support “Modern methods of construction,” including modular and factory-built homes, hold promise for boosting productivity in a sector that has been a laggard in innovation for decades. Stackhouse pointed out that construction has remained largely unchanged—”hammer and nail crew at a time”—while other industries have transformed. Scaling up these new approaches, however, requires more than technology. Shewchuk highlighted three missing enablers: insurance products tailored to factory-built homes, appropriate financing models, and standardized building codes across jurisdictions. Without these, the industry will struggle to transition from a craft-based model to a manufacturing one. 5. Solving the crisis demands unprecedented collaboration and a “joined-up” approach Throughout the discussion, both speakers returned to the necessity of collaboration across governments, sectors, and disciplines. Shewchuk described the new federal agency, Build Canada Homes, as a “tool in the toolkit,” not a silver bullet. Its success will depend on how well it collaborates with provincial, municipal, non-profit, and private partners. Stackhouse, meanwhile, framed housing as central to Canada’s social contract and economic mobility. The crisis risks fraying that contract, especially among young people and newcomers who see homeownership or secure tenure as part of the Canadian promise. Looking ahead, Shewchuk argued that turning the corner will require a “joined-up approach… working together in a spirit of genuine collaboration,” leveraging blended finance, trusting partnerships, and learning from local experiments. Generative AI assisted in the production of this story.