New Meridian data reveals a widening gap between what Canadians want and what builders can deliver
Most Canadians are willing to rethink homeownership. The construction sector wants to build. However, a new national report from Meridian Credit Union finds both groups blocked by the same systemic failures, and brokers watching this dynamic play out in real time.
The Meridian Housing Attainability Report 2026, based on surveys of 1,500 Canadian consumers, 527 Meridian members, and 250 construction industry decision-makers conducted between May 13 and June 8, documents a profound disconnect: demand for attainable housing is shifting in the right direction, but the conditions needed to deliver it are not.
Seventy-seven percent of Canadians now identify housing attainability as a critical issue for the country's future, according to the report. That concern is translating into a genuine openness to non-traditional housing formats — 62% say they would consider modular, prefabricated, or tiny homes, and half view those formats as a viable route to homeownership.
Purchase price (89%) and monthly carrying costs (84%) are the primary decision drivers, a finding that places value squarely at the centre of how Canadians now define the right home.
"Canadians are showing us that homeownership is no longer one-size-fits-all," said Jay-Ann Gilfoy, President and CEO of Meridian Credit Union.
"From co-ownership arrangements to modular housing and rent-to-own models, people are adapting to today's realities and looking for new ways to achieve their housing goals. The challenge is ensuring those options are supported by the financing, supply and partnerships needed to make them viable."
The generational dimension is striking. Among Millennials, 87% report ongoing stress related to housing costs; the figure sits at 81% for Gen Z.
In Ontario, 80% of residents report housing-related anxiety, and 66% worry they may never be able to afford a home.
Facing those pressures, 70% of Gen Z and Millennials say they are delaying a move, planning to rent longer, or drastically lowering their housing expectations, a quiet contraction in demand that has long-term implications for the mortgage market.
Brokers working with first-time buyers will recognise the profile. Younger Canadians are navigating the financing landscape for co-ownership and alternative builds, with lenders and credit unions increasingly being asked to structure deals that fall outside the standard single-borrower, single-property model.
Robert Kavcic of BMO Capital Markets says August marked the end of the market's recent streak of modest gains, with sales weakening and higher bond yields continuing to put pressure on mortgage rates.https://t.co/N4GXfWA0eK
— Canadian Mortgage Professional Magazine (@CMPmagazine) September 16, 2026
Builders are willing but stuck
On the supply side, the report's findings are equally stark. Seventy-nine percent of builders say there is a meaningful mismatch between what the industry is currently building and what Canadians actually need. Half describe that gap as significant.
The economics of entry-level construction have broken down. Sixty percent of builders say high construction costs have made delivering affordable starter homes financially unviable.
When land costs, municipal fees, and material prices collectively exceed what a first-time buyer can service, developers are forced to target premium segments simply to maintain viable margins.
Labour compounds the problem. Skilled trades shortages affect 78% of all construction firms nationally, a figure that climbs to 94% among larger employers with 100 or more staff.
Among the hardest-to-fill roles: general labourers (28%) and carpenters or framers (18%).
Fifty-three percent of builders say these shortages are causing direct project delays, while 41% report significantly higher labour costs as firms compete for a shrinking pool of workers.
Financing is the third constraint. Sixty-three percent of builders report difficulty securing project financing, with rising material costs (62%) and broader economic uncertainty (52%) pushing projects off the table before shovels hit the ground.
"Builders are seeing demand for alternative housing options and new forms of homeownership, but bringing those projects to market isn't always straightforward," said Jason Teal, Vice President, Business Banking at Meridian Credit Union.
"Many construction businesses continue to face financing pressures, labour shortages and rising costs that make it harder to deliver the attainable housing Canadians are looking for."
The policy picture mirrors findings from Desjardins, which noted in early 2026 that total housing starts are poised to remain well below the Canada Mortgage and Housing Corporation's (CMHC) target of up to 480,000 units annually — the level CMHC has estimated would be needed to restore 2019-era affordability.
Builders in the Meridian survey pointed to two immediate policy priorities: 38% called for targeted funding or tax incentives for affordable entry-level construction, and 33% called for streamlined municipal permitting to reduce costly administrative delays.
A financing and delivery problem, not just a supply one
Meridian's report frames the housing crisis as both structural and systemic. Kevin VanKampen, Head of Business Banking at Meridian Credit Union, noted that the problem is not lack of demand — it is a failure to create the conditions under which attainable housing can actually be financed, approved, and delivered.
For mortgage brokers, the report signals a client base that is increasingly open to non-traditional product structures — co-ownership agreements, self-employed mortgages, and secondary suite financing among them.
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