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41 Percent of Canadian Home Builders Have Laid Off Workers – Many Don’t Plan to Rehire

Canada needs to build 5.8 million homes by 2030 to restore affordability, according to CMHC, yet residential construction is now moving backward.

A new report from the Canadian Home Builders’ Association (CHBA) shows:

✅ 41% of builders in Canada have laid off workers
❌ Most do not plan to rehire them

In key markets, the number is even higher:

  • Ontario: 64% of builders have laid off staff or subcontractors
  • British Columbia: nearly 4 in 10 builders report layoffs

This marks the lowest level of builder confidence CHBA has ever recorded.

Construction companies say they are being forced to reduce their workforce because:

  • Project financing is hard to secure with high interest rates
  • Pre-sales for condos and townhomes have slowed
  • Labour and material costs continue to climb
  • Government housing incentives aren’t reaching builders fast enough

With fewer workers and stalled projects, Canada could build far fewer homes than needed, worsening both the housing shortage and affordability crisis.

Why Are Builders Laying Off Workers?

According to CHBA, the primary pressures are:ChallengeImpact on Housing SupplyHigh interest ratesDevelopers can’t secure financing to buildSlow pre-construction salesLenders refuse to release project fundsRising material & labour costsTotal project costs no longer profitableDelayed government policy rolloutToo slow to support first-time buyers or developers

Many developers say they are shifting away from ownership housing (condos) toward purpose-built rentals, where incentives are stronger and financing is easier to secure.

How Each Province Is Being Affected

Ontario – The Worst Layoffs in Canada (64%)

Ontario builders reported the highest level of layoffs nationwide.

  • 64% of builders and subcontractors have laid off workers
  • Major markets affected: Toronto / GTA, Hamilton, Ottawa, Kitchener-Waterloo
  • High development fees and long approval times are stopping projects before they start

Ontario has the highest land and approval costs in the country.

CMHC previously stated that Ontario must build 1.5 million homes by 2031 to meet demand, yet construction starts are declining rather than increasing.

British Columbia – Nearly 40 Percent of Builders Have Laid Off Workers

BC is facing a similar trend, driven by:

  • Material inflation, especially lumber and concrete
  • Extremely high permitting costs and municipal delays
  • Slower pre-sales in Vancouver and Victoria condo markets

Developers are freezing mid-sized condo projects and pivoting to rental-only developments, where they can access tax rebates and federal financing incentives.

Alberta – Layoffs Are Lower, But Momentum Is Slowing

Alberta remains the strongest construction market due to:

  • Lower land costs
  • Faster municipal approvals
  • Population growth from interprovincial migration

Builders describe the market as ”cautiously active.”
Layoffs are happening, but nowhere near the level of Ontario and B.C.

Atlantic Canada – Demand Is High, But Capacity Is Low

Layoffs are lower in:

  • Nova Scotia
  • New Brunswick
  • Prince Edward Island
  • Newfoundland & Labrador

However, the region faces a different problem:
There are not enough builders to keep up with demand.

Material costs are higher due to transportation, and many builders are backlogged into 2026+.

What This Means for Homeownership in Canada

Fewer construction workers mean:

  • Fewer new homes
  • Higher competition for existing inventory
  • Higher prices over time

When builders pause or cancel projects during a shortage, affordability becomes worse — even if demand temporarily cools.

Canada doesn’t have a demand problem.
Canada has a building problem.

References

Kaleylangille

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