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Dear John,
To meet Ottawa’s ambitious new housing construction targets in order to restore affordability, the country needs more than $300 billion in additional financing – every year! – from 2025 to 2030.
To put this into perspective, this is equivalent to increasing the current Canadian savings rate by 50%.
One option to mitigate the need for a drastic increase in the domestic savings rate is to attract more foreign investment – but that will require substantial policy reforms to make Canada a more attractive environment for foreign investors.
It is very likely that these ambitious targets won’t be met, but even so, encouraging increased investment and higher domestic savings is a worthy policy pursuit.
Check out this latest study here and be sure to share it with your friends and colleagues.
Sincerely,
Niels Veldhuis
President
The Fraser Institute
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