Gauging Housing Supply in Canada : A Stock Approach

This paper estimates Canada's housing stock to gauge the supply-side component of therecent exuberance in the Canadian housing sector. The paper adds to the current relatedliterature by focusing on housing units and reconstructing housing stock and householdsseries. An error correction model is estimated at the provincial level over the period1980-2013 to estimate a measure of housing stock desequilibrium. The model predicts anexcess supply in the order of ½ percent above the housing stock level consistent withfundamentals as of 2013.