A little over a year ago, Prime Minister Mark Carney unveiled Build Canada Homes in Ottawa with the aim of addressing the housing crisis and expediting residential construction. The initiative by the federal government aims to increase the supply of affordable housing, responding to concerns raised by industry leaders about the sluggish pace of housing development nationwide.
To date, Build Canada Homes has committed to supporting the construction of approximately 19,000 affordable housing units across Canada, with only about 2,000 units currently under construction. Dave Wilkes, the president and CEO of the Building Industry and Land Development Association in Toronto, expressed the need for faster progress, emphasizing the industry’s impatience with delays.
The federal housing agency transitioned into a Crown corporation in July, following the enactment 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.
Build Canada Homes spokesperson Joshua Coke highlighted the unprecedented demand for affordable housing in Canada, stressing the urgency for increasing the pace and scale of home construction across the country. The agency’s focus is primarily on developing non-market housing, tied to income levels rather than market rates, while also collaborating with developers to create affordable homes for the middle class.
Kevin Fettig, president of CMI Financial, pointed out that successive Canadian governments had neglected funding and constructing new affordable housing for about three decades. The shift in fiscal priorities during the ’80s and ’90s led to a halt in federal support for affordable housing initiatives, including the discontinuation of new affordable housing projects.
Federal Housing Minister Gregor Robertson acknowledged Ottawa’s prolonged absence from addressing housing affordability issues, emphasizing the government’s renewed commitment to the cause. The approach taken by Build Canada Homes, aimed at streamlining residential projects through support for builders, developers, and community partners, is expected to yield positive outcomes over time.
The Canada Mortgage and Housing Corporation (CMHC) reported a significant supply gap in the housing market, with the need for annual construction of 417,000 to 469,000 units by 2036 to restore affordability levels seen in 2019. CMHC’s chief economist, Mathieu Laberge, highlighted the importance of both market and non-market housing to tackle affordability challenges, noting the pent-up demand from younger Canadians and newcomers.
Wilkes emphasized the positive impact of measures like the HST rebate and reduction in development charges in Ontario, which have helped alleviate housing market pressures. Additionally, a recent partnership between Ottawa and Alberta aims to construct over 1,460 affordable apartments and townhouses through Build Canada Homes, addressing the growing need for housing in the province.
Build Canada Homes is mandated to promote innovative construction methods like modular and prefabricated housing to expedite construction processes and enhance affordability. Minister Robertson underscored the importance of modernizing the industry to facilitate faster and more cost-effective construction practices.