A little over a year ago, Prime Minister Mark Carney unveiled Build Canada Homes in Ottawa, aiming to address the housing crisis and expedite residential construction. This initiative by the federal government aims to enhance the supply of affordable housing amid concerns raised by industry leaders about the sluggish pace of housing development nationwide.
Build Canada Homes has committed to supporting the construction of approximately 19,000 affordable units across the country, with around 2,000 of these units currently under construction. According to Dave Wilkes, the president and CEO of the Building Industry and Land Development Association in Toronto, there is a push for faster progress in the industry, which is known for its impatience.
The federal housing agency, now a Crown corporation since July following the Build Canada Homes Act receiving royal assent, has been navigating bureaucratic processes, securing land transfers, and finalizing intergovernmental agreements. Build Canada Homes spokesperson Joshua Coke emphasized that the initiative is just beginning to address the unprecedented demand for affordable housing in Canada.
While the agency primarily focuses on non-market housing linked to income levels rather than market rates, it also collaborates with developers to create affordable housing for the middle class. According to Coke, addressing housing affordability challenges necessitates expedited and expanded construction efforts.
Kevin Fettig, president of CMI Financial, highlighted a long absence of federal funding for affordable housing dating back three decades, underlining a shift in Ottawa’s priorities leading to a lack of focus on affordability. Federal Housing Minister Gregor Robertson acknowledged this historical neglect and expressed a commitment to change the narrative.
Build Canada Homes’ strategy involves equipping builders, developers, and community partners with tools to accelerate residential projects, aiming for gradual but positive outcomes. The Canada Mortgage and Housing Corporation (CMHC) noted a significant gap in housing supply, emphasizing the need to double the pace of current housing starts to restore affordability levels from 2019.
CMHC’s chief economist, Mathieu Laberge, stressed the necessity of building 417,000 to 469,000 units annually by 2036 to meet this goal and avert future affordability risks. Laberge highlighted a strong demand for housing across all segments, emphasizing the importance of a diverse housing supply to tackle affordability challenges effectively.
Recent collaborations and initiatives, such as the HST rebate and reduced development charges in Ontario, have helped stabilize overheated housing markets, fostering increased housing supply. The partnership between Ottawa and Alberta to construct affordable housing reflects a broader effort to meet the growing demand for housing in rapidly expanding provinces.
Build Canada Homes’ mandate includes promoting innovative construction methods like modular and prefabricated housing to streamline construction processes. Minister Robertson emphasized the importance of modernizing the industry to enable faster and more cost-effective construction practices.