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 is committed to increasing the delivery of affordable housing during a time when industry experts are concerned about the slow pace of housing development nationwide.
Build Canada Homes has pledged to support 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 in Toronto, expressed a desire for faster progress, noting the industry’s impatience.
The federal housing agency became a Crown corporation in July, following the royal assent of the Build Canada Homes Act. Much of the past year has been dedicated to overcoming bureaucratic obstacles, securing land transfers, and finalizing intergovernmental agreements.
According to Build Canada Homes spokesperson Joshua Coke, this is just the initial phase of the agency’s efforts to address the unprecedented pressure on Canada’s housing sector due to the high demand for affordable homes. The agency’s focus is primarily on constructing non-market housing, where rents are income-based rather than market-driven, while also collaborating with developers to build affordable homes for the middle class.
Kevin Fettig, president of CMI Financial, highlighted that the Canadian government had ceased funding and constructing new affordable housing for nearly three decades under both Conservative and Liberal administrations. This absence of focus on affordability led to a significant supply gap, necessitating urgent action to address the ongoing affordability challenges in the housing market.
CMHC’s chief economist, Mathieu Laberge, emphasized the need for a substantial increase in housing construction to restore affordability across the country. The report suggests that approximately 417,000 to 469,000 units must be built annually by 2036 to meet this goal. Laberge underscored the importance of addressing the pent-up demand for housing among younger Canadians and newcomers.
Wilkes highlighted the positive impact of initiatives like the HST rebate and reduced development charges in Ontario, which helped alleviate housing market pressures in areas like Toronto. The partnership between Ottawa and Alberta to construct affordable housing units signifies a step towards addressing the housing shortage in rapidly growing provinces.
Build Canada Homes aims to promote innovative construction methods, such as modular and prefabricated housing, to accelerate construction timelines and enhance affordability. Federal Housing Minister Gregor Robertson emphasized the importance of modernizing the industry to facilitate faster and more cost-effective construction processes.