The federal government is pushing ahead with plans to turbocharge the construction of affordable homes across the country
Prime minister Mark Carney unveiled new details on Sunday about Build Canada Homes, a centrepiece of his party’s spring federal election campaign aimed at addressing a generational housing crisis that continues to grip Canada.
The program is a new federal agency aimed at expanding the supply of affordable housing across the country – a measure welcomed by some, but criticized by others as missing the mark on tackling the root causes of the country’s housing woes.
Operating under Housing, Infrastructure and Communities Canada (HICC), the agency has a mandate to build, finance, and catalyse new approaches to housing, while working with provinces, territories, municipalities, and Indigenous communities.
At the centre of its mission is non-market housing, designed to meet the needs of low- and middle-income households. By supporting non-profits, co-operatives, and Indigenous housing providers, the agency aims to double housing construction, restore affordability, and reduce homelessness.
Build Canada Homes is positioned as a cornerstone of Canada’s housing strategy. Its success will be measured not only in the number of homes built, but also in the agency’s ability to make affordability a lasting reality for Canadians.
Core goals
One of Build Canada Homes’ key roles is to lead large-scale housing development across the country. Using public lands transferred from Canada Lands Company, the agency plans to prioritise factory-built housing and sustainable construction methods. With bulk procurement and innovative design, the goal is to deliver homes more quickly and at lower cost.
To support long-term growth, Build Canada Homes will also provide stable, low-cost financing for housing providers. Funding will focus on urgently needed projects such as supportive, transitional, and Indigenous housing, while also backing developments that serve seniors, students, and families.
Beyond construction, the agency is tasked with reshaping Canada’s housing industry. By creating predictable demand for modular and factory-built homes, Build Canada Homes seeks to strengthen supply chains, reduce costs, and generate high-paying jobs in construction and manufacturing. A new “Buy Canadian” policy will also prioritise lumber, steel, aluminium, and mass timber sourced from within the country.
This shift toward modern construction methods is expected to lower emissions, support climate resilience, and reduce reliance on government subsidies.
Initial projects
The agency has already outlined its first projects:
- Six public land sites in cities including Toronto, Ottawa, Winnipeg, and Edmonton will be developed to deliver 4,000 factory-built homes, with additional capacity for up to 45,000 units nationwide.
- A $1.5 billion Rental Protection Fund will be launched to help the community housing sector acquire at-risk rental apartments and keep them affordable.
- A $1 billion investment will fund transitional and supportive housing for Canadians facing homelessness or housing insecurity.
- In partnership with the Nunavut Housing Corporation, over 700 affordable and supportive units will be built, with about 30% using factory-built methods.
At the helm is chief executive officer Ana Bailão, a former Toronto deputy mayor with extensive experience in housing policy. Bailão has long advocated for public-private partnerships and sustainable development and now leads Build Canada Homes as it prepares to transition into a standalone federal agency.
“We’re not just building units – we’re building opportunity, dignity, and a future where everyone in Canada has access to the homes they need – and deserve,” said Bailão.
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