What’s really blocking Canada’s housing recovery?
However, optimism is tempered by a demand for urgency. Sixty-six percent have already adjusted prices to account for some or all tariff costs, and 67% say regulatory requirements have created institutional gridlock, delaying projects and deterring investment.
Regulatory gridlock straining housing supply
For mortgage brokers, those figures carry direct consequences. Regulatory red tape has been driving up Canadian home prices, with Canada Mortgage and Housing Corporation (CMHC) research finding that a 10% increase in a municipality’s regulatory restrictiveness correlates with a 14% rise in house prices.
The KPMG survey amplifies that concern: business leaders ranked removing red tape and accelerating regulatory reform as their top government priority, tied at 50% with fast-tracking a new west coast oil pipeline, ahead of accelerating major infrastructure projects (47%) and tax reform (43%).
“Businesses accept the need for appropriate safeguards, but want faster, more predictable processes that accelerate project delivery and enable investment and scaling decisions,” said Lachlan Wolfers, National Leader, KPMG Law.
A separate finding underscored the scale of the concern: 65% of respondents agreed that over-regulation and higher taxes make it harder for businesses to scale and remain in Canada. That’s a dynamic that when applied to developers and homebuilders, translates directly into constrained new housing supply.
