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Canada Built Too Few Homes, CMHC Says

Canada’s housing affordability crisis has a price tag now. Had the country’s construction industry responded to demand as fluidly as its American counterpart, housing starts between 2006 and 2024 could have been nearly 30% higher and home prices close to 10% lower over the same period, according to CMHC analysis released Thursday.

The figures come from scenarios run through CMHC’s Integrated Housing Model, calibrated using OECD research. The central variable was housing supply elasticity. Analysts raised it to levels closer to those observed in the U.S. and measured what Canadian outcomes might have looked like.

Two structural forces explain the gap. The first is regulation. Tighter zoning and land use rules, particularly in major urban centres, have made it materially harder to add new supply quickly. The U.S. faces fewer such constraints across many of its metropolitan areas. The second is geography. Canadian housing demand clusters in a small number of large cities, which leaves households with fewer comparable alternatives when they want to move and reduces competitive pressure on developers to respond fast.

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What’s going on?

• Why Canada Fell To 19th In The Best Countries Ranking (theDeepDive)

• Canada eliminates U.S. in hockey worlds quarterfinal (Globe)

• CFL Splits Broadcast Rights Across Bell, DAZN and YouTube in Historic Deal (theDeepDive)

• A strong Canada 'will help make America great again,' Carney tells New York business leaders (CBC)

• Rosatom Wins Lead Role in $16.5B Kazakhstan Balkhash Plant (theDeepDive)

• Washington nearing deal to extend Iran ceasefire, US officials say (FT)

• U.S.-Iran Ceasefire MOU Agreed To In Principle As Trump Asks For More Time, Per Axios (theDeepDive)

• Core inflation hit an annual rate of 3.3% in April, as expected, Fed’s preferred gauge shows (CNBC)

• DOJ Opens Criminal Probe Into E. Jean Carroll Over Alleged Perjury in Trump Lawsuits (theDeepDive)

What’s the latest?

• Prediction Markets: The CFTC sued the state of Rhode Island after Rhode Island moved against prediction market platforms Kalshi and Polymarket over sports-related event contracts. The CFTC argues that prediction markets fall under federal oversight for swaps and derivatives, not state gambling laws, and called the state actions an unlawful “power grab.” The case is part of a wider national battle involving 18 states over who has authority to regulate prediction markets, with the dispute becoming increasingly political and tied to the growing popularity of event-based trading platforms.

• Markets: Canada’s main stock index edged higher in late-morning trading as gains in technology and base metal stocks offset broader market caution. The S&P/TSX Composite Index rose 29 points, while U.S. markets were mixed with the Nasdaq Composite outperforming on tech strength and the Dow Jones Industrial Average slightly lower. Meanwhile, oil and gold prices both climbed, and the Canadian dollar strengthened modestly against the U.S. dollar.

• Politics: Mark Carney told a New York business audience that “Canada strong will help make America great again,” using Donald Trump’s slogan to argue that a stronger, more independent Canada benefits the U.S. as well. Carney highlighted Canada’s role in North American supply chains, energy security, and defence while promoting his government’s push to diversify trade and reduce overreliance on the U.S. The speech drew mixed reactions, with Pierre Poilievre criticizing Carney’s messaging as contradictory, while business leaders praised the prime minister’s investment-focused pitch and emphasis on economic cooperation.

• Economy: U.S. inflation remained elevated in April, with the Fed’s preferred inflation gauge rising 3.8% year-over-year, while core inflation held at 3.3%, reinforcing expectations that the Federal Reserve will keep interest rates unchanged for now. Although monthly inflation readings came in softer than expected, higher gasoline and housing costs continued to pressure consumers, while economic growth slowed sharply to 1.6% in the first quarter. Markets now expect the Fed to remain cautious amid persistent inflation risks tied to tariffs and the Iran conflict, even as some signs point to easing underlying price pressures.

• Oil Prices: Oil prices fell Thursday after reports that U.S. and Iranian negotiators reached a proposed 60-day agreement to extend the ceasefire and begin nuclear talks, easing fears of a prolonged supply disruption in the Middle East. Despite fresh military exchanges between the two countries, investors focused on signs of diplomacy, pushing Brent Crude below $94 per barrel and West Texas Intermediate near $89. Markets remain volatile, however, as uncertainty continues around the future of the Strait of Hormuz and whether any final agreement will actually restore normal oil shipping flows.

Why This Gold Company Keeps Spinning Out Assets

The stock market and stuff

• CIBC Q2 2026 Profit Jumps 23% On Higher Revenue As PCL Freezes (theDeepDive)

• TD Bank’s Q2 2026 Earnings Lift Overshadowed By Huge Income Drop (theDeepDive)

• Anthropic finalises $65bn funding deal to surpass OpenAI’s valuation (FT)

• Cameco Restores Full Production at McArthur River and Key Lake After Flood Disruption (theDeepDive)

• RBC’s 25% Earnings Jump In Q2 2026 Puts Credit Costs In Focus (theDeepDive)

In the juniors

• Minera Alamos Greenlights Copperstone After PFS Pegs NPV at $537 Million (theDeepDive)

• Andina Copper Drills New Porphyry Copper System at Piuquenes North (JMN)

• Crossroads Gold Closes Rox-ex Acquisition, Adds Pambula and Club Terrace to Australian Pipeline (theDeepDive)

FULL DISCLOSURE: Mercado Minerals is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of Mercado Minerals. The author has been compensated to cover Mercado Minerals on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.