1645 ET - National Bank Financial says federal policymakers might have to step up again to help spur home building in Canada due to conditions that point to a sharp slowdown. In a special report, the firm says efforts to cap population growth, via limits on immigration, has helped improve housing affordability. The problem, NBF says, is there's a risk that housing construction slows down due to weak demand. Asking rents have been declining and unsold new homes are at a three-decade high, which make projects for developers less attractive, NBF says. The federal government might "have to put in place appropriate incentives to avoid such a vicious cycle," says NBF, which estimates the gap between housing demand and supply has narrowed to 470,000 units. (paul.vieira@wsj.com; @paulvieira)

(END) Dow Jones Newswires

March 04, 2026 16:45 ET (21:45 GMT)

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