A little over a year ago, Prime Minister Mark Carney was in Ottawa announcing the launch of Build Canada Homes, a federal initiative aimed at addressing the housing crisis and expediting residential construction. The agency is committed to increasing the supply of affordable housing, a critical need highlighted by industry experts concerned about the slow pace of housing development nationwide.
Build Canada Homes has pledged support for the construction of approximately 19,000 affordable housing units across the country, with around 2,000 units currently under construction. Industry representatives, such as Dave Wilkes, President and CEO of the Building Industry and Land Development Association in Toronto, acknowledge the need for quicker progress, emphasizing the industry’s need for efficiency.
Transitioning to a Crown corporation only in July, Build Canada Homes has spent significant time navigating bureaucratic hurdles, securing land transfers, and finalizing intergovernmental agreements. The agency’s spokesperson, Joshua Coke, emphasizes that addressing the unprecedented pressure on Canada’s housing sector requires swift action to meet the demand for affordable homes.
While the primary focus of the housing agency is on non-market housing tied to income levels rather than market rates, it is also collaborating with developers to build affordable homes for the middle class. Federal Housing Minister Gregor Robertson acknowledges the historical absence of Ottawa in addressing housing affordability and emphasizes the current government’s commitment to change the status quo.
Kevin Fettig, President of CMI Financial, highlights the long period during which the Canadian government ceased funding and constructing new affordable housing, leading to a significant gap in the market. He believes that Build Canada Homes’ approach of providing support and resources to expedite residential projects will yield positive outcomes over time.
The Canada Mortgage and Housing Corporation (CMHC) reports that approximately 417,000 to 469,000 units need to be built annually by 2036 to restore housing affordability to 2019 levels. CMHC’s chief economist, Mathieu Laberge, stresses the importance of addressing the supply gap to meet the demand from younger Canadians and newcomers, underscoring the need for a diverse range of housing solutions.
Wilkes highlights the positive impact of initiatives like the HST rebate and reduced development charges in Ontario on housing markets, facilitating increased supply. Recently, Ottawa announced a partnership with Alberta to construct over 1,460 affordable homes through Build Canada Homes, addressing the pressing need for housing in the rapidly growing province.
Build Canada Homes aims to promote innovative construction methods like modular and prefabricated housing to streamline construction processes. Minister Robertson emphasizes the importance of modernizing the industry to ensure faster and more cost-effective construction practices.
