In Ottawa about a year ago, Prime Minister Mark Carney unveiled Build Canada Homes, a federal initiative aimed at addressing the housing crisis and expediting residential construction. The agency is committed to ramping up the provision of affordable housing, a critical need as industry experts express concerns about the sluggish pace of housing development nationwide.

To date, Build Canada Homes has pledged support for 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, emphasized the need for quicker progress, highlighting the industry’s impatience in achieving results.

Since becoming a Crown corporation in July, Build Canada Homes has been navigating bureaucratic processes, securing land transfers, and finalizing intergovernmental agreements. According to spokesperson Joshua Coke, the agency recognizes the urgent demand for affordable housing surpassing the available supply in Canada.

While Build Canada Homes primarily focuses on non-market housing tied to income levels rather than market rates, it also collaborates with developers to build affordable homes targeting the middle class. The agency’s spokesperson emphasized the necessity of accelerating construction efforts to combat the housing affordability crisis effectively.

Kevin Fettig, president of CMI Financial, noted the long absence of federal funding and construction in affordable housing over the past three decades under successive Conservative and Liberal governments. The lack of focus on affordability led to a significant gap in housing supply, posing risks to future affordability levels.

The Canada Mortgage and Housing Corporation (CMHC) highlighted the need to double the pace of current housing starts to restore affordability levels nationwide, estimating that 417,000 to 469,000 units must be built annually by 2036. Laberge from CMHC stressed the importance of addressing pent-up demand from younger Canadians and newcomers across all segments of the housing market.

Wilkes commended initiatives like the HST rebate and reduction in development charges in Ontario for contributing to a recalibration of overheated housing markets. Ottawa’s recent partnership with Alberta to construct over 1,460 affordable units underscores the growing need for housing in rapidly expanding provinces.

Build Canada Homes aims to promote innovative construction methods like modular and prefabricated housing to expedite projects and improve affordability. Federal Housing Minister Gregor Robertson emphasized the importance of modernizing the industry to build faster and more cost-effectively.