Carney says government will top up housing partnership with City of Ottawa

Canada’s new federal government sets its latest marker on housing supply in Ottawa, approving eight rental projects under the Build Canada Homes program that are expected to add more than 1,100 units to the capital’s pipeline.

The announcement forms part of a broader $400 million federal–municipal partnership that targets up to 3,000 mixed‑income homes on public land and through the city’s existing affordable housing pipeline, a deal city council approved on April 22, 2026. 

"Canadians gave our government a clear mandate to build a stronger country – one where people are empowered with more opportunities, lower costs, safer communities, and homes you can afford," Prime Minister Mark Carney said.

"By building faster, building smarter, and building Canadian, we're building a stronger Ottawa and a stronger Canada for all."

Housing minister Gregor Robertson framed the Ottawa deal as a template for other cities. "This partnership shows how we can move faster when governments work together," he said.

"By unlocking public land and backing shovel-ready projects, we're helping deliver thousands of homes in Ottawa – with affordability and long-term community needs front and centre."

Rental-heavy strategy under scrutiny

The following eight sites are scheduled to begin construction between 2026 and 2027:

1. 200–201 Beausoleil Drive – 159 units (non-profit)

2. Geyser Place (formerly 3380 Jockvale Road) – 118 units (non-profit)

3. 1770 Heatherington Road (Phase 1) – 90 units (non-profit)

4. 58 Capilano Drive – 20 units (non-profit)

5. 240 Presland Road – 64 units (non-profit)

6. 100 block of Hickory Street – 110 units (non-profit)

7. 2475 Regina Street (Parkway House) – 266 units (private and non-profit)

8. 384 Arlington Avenue (Korean Church) – 296 units (private and non-profit)

Ottawa housing starts are already up about 7% in the first quarter of 2026 compared with a year earlier, according to Canada Mortgage and Housing Corporation, with rental apartments driving most of the growth.

Still, CMHC and industry analysts warned that 2025’s national lift in starts, including a 12% jump in Ottawa–Gatineau, came from a weak base and that construction momentum risks fading below long‑run averages through 2028.

Record rental building masks sharp slowdowns in Toronto and Vancouver, underscoring the gap between current output and the volume needed to restore affordability.

The Ottawa package offers one answer to that tension: lean harder into rental supply on public land, strip out local fees and insist on faster delivery.

Whether that would be enough to ease pressure on borrowers and investors in a high‑cost market remains an open question, but the direction of travel is clear – governments expect builders and lenders to treat accelerated rental construction as central to any mortgage‑market recovery.

Local pipeline meets national slowdown fears

Ana Bailão, chief executive of Build Canada Homes, said the agency is designed to "scale up affordable housing by bringing public land, flexible financing, and modern methods of construction under one roof" and that Ottawa’s projects "put that mandate into action... setting a new standard for speed and affordability in Canadian housing."

Ottawa mayor Mark Sutcliffe said the city’s decision to waive development and planning charges on Build Canada Homes projects, alongside its Housing Action Plan, signals that "we're saying yes to housing in Ottawa" and "responding to the housing crisis, making life more affordable, and delivering real results for Ottawa residents."

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