Feds have unveiled their latest approach to tackle Canada’s housing crunch
The Canadian government is pushing ahead with plans to turbocharge home construction in Canada, focusing on affordable housing as it bids to alleviate a housing crisis that’s put affordability out of reach for scores of hopeful buyers.
The federal government’s planned housing agency will place Canadian-made building materials and affordability at the centre of its strategy, according to a consultation document released last week.
Build Canada Homes (BCH), the flagship initiative promised by prime minister Mark Carney during the recent election, is designed to accelerate construction on federal lands, support non-market housing providers, and promote new methods of building such as prefabricated and 3D-printed homes.
“The aim is to deliver a significant number of affordable housing units,” the document published Monday by the Department of Housing, Infrastructure and Communities stated. It added that the program will prioritize projects using domestic materials and regional production hubs to lower costs and reduce environmental impact.
From promise to policy
Carney pledged during the campaign that his government would invest $6 billion in the initiative and provide $25 billion in financing for Canadian prefabricated homebuilders. The platform also promised incentives for companies hiring apprentices and recent graduates, alongside requirements for affordable housing in major federally funded projects.
Caroline Desrochers, parliamentary secretary to the minister of housing and infrastructure, told The Canadian Press the government is working to ensure the agency avoids “more layers of bureaucracy and approvals.” She said Build Canada Homes could be structured as either a stand-alone agency or a unit within the housing department and is expected to launch this fall.
The consultation paper outlines financial tools under consideration, including loans, equity investments, loan guarantees, and contributions. The government is inviting feedback from builders, non-profits, and the public until the end of August.
Housing affordability has emerged as one of Canada’s most pressing economic and social issues. Canada Mortgage and Housing Corporation (CMHC) reported in June that between 430,000 and 480,000 new housing units must be built over the next decade to restore affordability to pre-pandemic levels.
Defining affordability
Advocates welcomed the government’s commitment to scaling up affordable housing but stressed the importance of clear targets and coordination with provinces.
Tim Richter, president and CEO of the Canadian Alliance to End Homelessness, said in a commentary Tuesday that Build Canada Homes could be “an ambitious and potentially transformative concept that could reshape Canada’s housing landscape” if executed effectively.
He cautioned, however, that the initiative must adopt a precise definition of affordability tied to household incomes and focus on measurable outcomes such as reductions in homelessness. “Counting the number of units built is only one piece of the puzzle,” Richter wrote. “True success means measurable community-level reductions in homelessness and housing need.”
Richter also urged Ottawa to negotiate a new national housing agreement with provinces and territories to avoid fragmented efforts. “The scale of change we need can’t be accomplished by BCH or any government on its own,” he said.
Agency taking shape
While the design of BCH is still underway, Desrochers confirmed discussions are taking place with modular and prefabricated home companies to identify projects ready for funding. She emphasized that the government intends to begin “doing work right now with what we have already” as the agency is established.
The fall budget is expected to provide further details on funding and governance, setting the stage for what could become one of the most significant federal housing initiatives in decades.
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