What if I told you that Canada is short a massive amount of homes, like a massive amount of homes all across the country, with the biggest portion of homes needed in British Columbia and Ontario? Based on what we've seen and since the COVID 19 pandemic began, this probably doesn't surprise you, but I am going to let you know today all about the amount of homes projected that we're going to need all across Canada and more specifically in British Columbia to make sure that we don't always live in a housing supply crunch. We're going to be throwing around some very big numbers in this video, so you don't want to miss this.
What's good, everybody? It's Darin Germyn from the Germyn Group, where we know you've only got one chance to either buy or sell your next home. So we're here to help you get it right.
All right, so the number of homes that we are projected to be short in Canada by is 3.5 million.
This number was released by the Canada Housing and Mortgage Corporation, or as you may better know them, CMHC. They're basically saying by 2030, the amount of homes that are projected to be built across Canada is simply not enough. And there's going to be a shortfall of three and a half million homes across Canada, with the areas most affected by 2/3, British Columbia and Ontario and Quebec coming in number three, because they need a lot too. If current construction rates continue, we will build an estimated 2.3 million homes or units across Canada by 2030. But that simply is not enough.
There's lots of people due to come here, and there's lots of people that want to live here. If we're looking at 2.3 million homes in the next eight years, that number needs to over double to make up for the amount of homes that we will need to make sure that we are, again, not living in a housing crunch. Now, to make things worse, this is completely exasperated by the amount of money it takes to pay people to build homes and the amount of money it takes to build a home. If you're a regular watcher of our YouTube videos, you know that the BCPI or Building Construction Price Index across Canada went up 5.6% in just the first quarter of this year alone, and it's up well over 20% in just one year. That is what is happening with the building costs of building homes for more people to live in across Canada.
Not to mention that you've got cities like Vancouver, you've got cities like Toronto, where if you're going to participate in constructing a home in Vancouver, you probably want to live close to where you work. And the problem is, with the affordability being so difficult for so many people, that means wages and rates have to go up to help these skilled workers come and help construct these properties. This is a monstrous problem that needs to be solved, and there's a few solutions that could be implemented that all levels of government need to participate in.
It's a lovely idea to say that housing prices need to come down, and I think everybody essentially likes that idea. But what happens in real estate is what we call NIMBY-ism, and NIMBY stands for Not In My Backyard. Everybody loves the idea of affordable homes, but they don't like it for the idea of their own home. Sure, your neighbor should sell for a much more, what we could call reasonable amount than what it's really worth to help somebody get into their home. But that's good for your neighbor, but it's not good for you.
I personally was trying to think of some solutions that might be out there to help with this crisis, and here's a few that I came up with in no particular order, the first idea is investing more in 3D printed homes. What is a 3D printed home? Leamington, Ontario is one of the first lucky communities in Canada to have a 3D printed home. A 3D printed home is a game changing solution to the housing crisis because it increases efficiency, promotes density, and cuts the cost significantly associated with construction. If you want to learn more about this 3D printed home in Canada, or you want to learn more about them generally, I put a link below.
The next issue, of course, is eliminating as much red tape as possible. The amount of time that it takes to get home permits to construct do zoning changes, and the amount of money that goes to the city when you want to construct a new home is completely overwhelming and needs to change. In 2018, the Daily High estimated that in the city of Vancouver, it costs upwards of $600,000 to build a new home in the city of Vancouver due to strict regulations and very inflexible policy that is completely mind blowing. Now, there is, of course, going to be fees associated and there are many things that go along with building a home, like many people might not know, often in communities you have to have a portion go towards your park space in the neighborhood, but those numbers are just astronomical and it's insane to think about. So that completely needs to change.
And I think that's honestly a high priority for government right now, because as many times as they want to put taxes on home buyers or eliminate the drive to own homes, it's really about supply. Speaking of supply, we might need to rethink how we build homes and what we construct them out of. And this is an example of the mentioned earlier, but expensive wood from British Columbia might not be the best way to construct homes moving forward. Another controversial idea is to start opening up land certain areas, like in the area of Toronto or the GTA or Same within Vancouver, we are very landlocked.
And in Vancouver, as an example, we've also got a huge portion of land called the ALR or Agricultural Land Reserve. This land has been set aside by the government to ensure that we can maintain food production for everybody that lives here. And this is incredibly important, yet it takes up a huge swath of area in the lower mainland. If you want to check out a map of where this area lies just to see how vast it is, I've also left the link below for you to check out. The next solution is we need to be way better at constructing homes, and I'm talking density and multifamily homes like condominiums near major transit stops.
Think about the sky train in the city of Richmond as an example. This is where you can jump off at a sky train stop that has no parking lot, and it is a mixture of car lots surrounding the sky train stop that is absolutely ludicrous. You need to have major density by every transit stop so people can leave their cars at home and they don't have to have the big backyard that they might want because they've got shared park space and shared amenities, making their life a lot simpler. And that kind of ties into the last idea is we all need to start rethinking about what a home looks like. My parents were fortunate enough to own a beautiful detached home in Ocean Park when I was a kid growing up.
It had a nice backyard. It was in a cul de sac. My brother and I used to play hockey in the cul de sac and ride our bikes around. That was an amazing childhood and we were so fortunate to have had that. Yet today, with where real estate prices are and just what we're learning about affordability and how to build better communities, we need to realize and recognize that that may no longer be the first home for people.
And of course, it's not because of what's happened with property values. Someone's first home now is likely going to be a condominium rather than a detached home. You think about a lot of these detached homes in our community too, and there is just so much wasted space with these detached homes. Don't get me wrong. I think we all would love to have them and we'd all love to live in one, but you've got maybe a big backyard that you go in just in the summertime, which is a complete waste of habitable area.
You've got a big driveway and maybe a big front yard, and it's no different. So this would be an example of rethinking how we use properties as people that live in them, which is everybody. Anyways, guys, that's it for this post. I'm curious what you think might help with this construction crisis and what might help add more properties to our inventory. Be sure to leave a comment below.
Let me know what you think. And while you're down there, don't forget to check out one of our two PDFs for either home buyers or home sellers. Guys, I'm Darin Germyn with the Germyn Group. I want to thank thank you for reading. We know you've only got one chance to buy or sell your next home, so we're here to help you get it right.
We look forward to seeing you on the next post. Thanks.