Housing construction in Canada has long been tied to the country’s forestry industry. Wood has remained one of the most popular and reliable building materials for residential development. However, when comparing housing construction trends today to those of the 1970s, a significant imbalance has emerged — and it’s affecting both the housing market and the forestry sector.
Housing Construction in the 1970s
The 1970s marked a period of steady growth in Canada’s housing construction sector. During this decade, new home starts averaged around 239,000 units per year. This was in response to a growing population, increased urbanization, and rising demand for single-family homes and apartment developments.
At the time, Canada’s forestry industry was a major supplier of building materials, providing lumber for everything from framing to flooring. Forests across British Columbia, Ontario, and Quebec supplied vast quantities of wood, supporting rapid housing construction and economic growth. The availability of timber was high, and forestry practices were largely focused on meeting immediate material needs.
Housing Construction Gap Today
Today’s landscape presents a different challenge. Canada’s population growth rate has increased significantly in recent years, with immigration and natural growth both contributing to record numbers. Between 2021 and 2024, Canada’s population grew by more than 850,000 people per year — nearly triple the growth seen in the 1970s.
Yet, despite this increase, housing construction rates have barely changed. Over the same three-year period, new home starts averaged only 254,000 units per year. While this number is slightly higher than that of the 1970s, it falls well short of what’s needed to match population growth.
This growing gap has contributed to Canada’s well-documented housing affordability issues. More people are competing for a limited number of homes, leading to higher property prices and increased demand for residential construction.
Forestry Industry’s Role in Housing Construction
As one of the country’s largest suppliers of building-grade lumber, the forestry industry continues to play a key role in Canada’s housing construction market. However, the way forests are managed, harvested, and protected has evolved significantly since the 1970s.
Today, there is greater emphasis on sustainable forestry practices, with regulations designed to protect biodiversity, water quality, and long-term forest health. While these practices help safeguard Canada’s forests, they have also reduced the volume of timber available for immediate use in housing construction.
Old-growth forests, particularly in British Columbia, are now subject to stricter protections, limiting large-scale logging in certain areas. As a result, the forestry industry has shifted toward managed second-growth forests and selective harvesting practices. These changes are essential for ecological balance but can create challenges for quickly scaling up lumber production in response to surging housing demand.
Adapting to New Housing Construction Needs
The gap between population growth and housing construction highlights the need for adaptation across industries. The forestry sector is already responding by investing in sustainable forest management and wood-processing innovations. Engineered wood products, such as cross-laminated timber (CLT) and glued laminated timber (glulam), are becoming more widely used in residential and commercial construction. These products maximize the use of smaller-diameter logs while providing strong, durable materials for builders.
At the same time, construction companies are exploring alternative materials and building methods that reduce reliance on traditional lumber. These include:
- Modular homes — Factory-built homes assembled on-site, offering faster construction times and reduced material waste.
- Steel framing — A durable and recyclable alternative to traditional wood framing for residential and commercial buildings.
- Hybrid structures — Innovative designs that combine wood, steel, and concrete for strength, sustainability, and cost-effectiveness.
Growing Role of Wood in Modern Construction
In recent years, there has been a growing shift toward using more wood-based products in Canadian construction projects. Builders and developers are increasingly interested in mass timber and engineered wood products, not only for their strength and versatility but also for their environmental benefits. These modern materials make better use of sustainably managed forests, helping to reduce waste and carbon emissions while meeting rising housing demand.
This change aligns closely with the challenges discussed throughout this article. While Canada’s housing construction rates have remained relatively steady since the 1970s, the need for affordable, sustainable building options has grown alongside the population. The forestry industry’s evolving practices and the introduction of innovative wood products provide valuable solutions to help balance housing needs with environmental responsibility.
By integrating modern forestry products into new housing projects, Canada can build homes faster and more efficiently, while continuing to protect and manage its forests for future generations.
Moving Forward: A Balanced Approach
Addressing the current imbalance between housing demand and housing construction will require a balanced, coordinated effort. The forestry industry, construction sector, and urban planners can work together to ensure that housing projects are both affordable and sustainable.
Improved forest management practices, coupled with innovations in wood-based building products, can support increased housing construction without compromising environmental goals. By responsibly managing resources and adopting new construction techniques, Canada can build the homes it needs while protecting the natural landscapes that supply essential building materials.
Conclusion
The connection between housing construction and the forestry industry remains as strong today as it was in the 1970s. However, the challenges of rapid population growth, housing shortages, and sustainable resource management have made this relationship more complex. While housing construction rates have remained relatively flat over the past five decades, the demands on Canada’s forests — and the expectations of how they should be managed — have changed dramatically.
Moving forward, solutions will lie in finding a sustainable balance: producing enough quality timber to meet the needs of modern housing construction, while maintaining healthy, productive forests for future generations. The opportunities for innovation, collaboration, and sustainable growth in both industries are clear — and essential.