A little over a year ago, Prime Minister Mark Carney made an announcement in Ottawa about the launch of Build Canada Homes, a federal initiative aimed at addressing the housing crisis and expediting residential construction. The agency’s goal is to increase the production of affordable housing, responding to concerns raised by industry leaders about the slow pace of housing development nationwide.
Build Canada Homes has committed to supporting the construction of approximately 19,000 affordable units across the country, with only around 2,000 units currently under construction. Dave Wilkes, the president and CEO of the Building Industry and Land Development Association based in Toronto, expressed the need for faster progress in the industry, emphasizing the urgency in addressing housing challenges.
Having recently become a Crown corporation in July, the federal housing agency has been navigating bureaucratic processes, securing land transfers, and finalizing intergovernmental agreements. A Build Canada Homes spokesperson highlighted the pressing demand for affordable homes exceeding the current supply, signaling that the agency’s efforts are just the starting point.
The agency’s focus is on developing non-market housing, where rents are income-based rather than market-driven, while also collaborating with developers to create affordable housing for the middle class. Federal Housing Minister Gregor Robertson acknowledged the prolonged absence of Ottawa from addressing housing affordability, emphasizing the government’s renewed commitment to this critical issue.
Kevin Fettig, president of CMI Financial, highlighted the historical lack of government funding and construction of affordable housing over the past three decades. He praised Build Canada Homes’ strategy of empowering builders, developers, and community partners to accelerate residential projects, foreseeing positive outcomes in the long term.
Even the market-priced housing segment is facing challenges, with housing starts hovering around 250,000 annually, according to the Canada Mortgage and Housing Corporation. To restore affordability levels from 2019, the pace of housing starts needs to double, requiring an estimated 417,000 to 469,000 units to be built annually by 2036.
Mathieu Laberge, chief economist at the Canada Mortgage and Housing Corporation, emphasized the importance of addressing the significant supply gap to prevent future affordability risks. He stressed the need for a diverse range of housing options to cater to the demand from various segments of the population, emphasizing the importance of swift and efficient construction methods.
Recent collaborations between Ottawa and Alberta to construct affordable housing units through Build Canada Homes have been welcomed as a step in the right direction. The partnership aims to address the growing demand for housing in the rapidly expanding province. The new Crown corporation is also promoting innovative construction methods to streamline the building process and enhance affordability across the housing sector.