Canada must deliver 3.2 million net new housing units by 2035 to close the country's supply gap, according to a new updated analysis by the Government of Canada's Parliamentary Budget Officer (PBO). That works out to about 290,000 net new homes per year — a pace the country has never sustained. Net new takes into account the homes that have been demolished to make way for new additional homes. That leaves a cumulative shortfall of roughly 690,000 homes compared to what is needed to restore vacancy rates to long-term averages. While meeting the 3.2 million net new homes target could ease pressure on prices and rents, the report warns it will not be enough to solve the affordability crisis on its own.