Build Canada Homes commits to 19,000 affordable units as federal government returns to housing
More than a year after its launch, federal Crown corporation Build Canada Homes has committed to supporting roughly 19,000 affordable units across Canada, though only about 2,000 are currently under construction. The agency aims to address a significant supply gap after decades of federal absence from affordable housing funding.
Prime Minister Mark Carney announced the launch of Build Canada Homes in Ottawa more than a year ago. The initiative became a federal Crown corporation in July following royal assent of the Build Canada Homes Act. Since then, the agency has committed to supporting the construction of roughly 19,000 affordable units across Canada, though only about 2,000 of those units are currently being built.
Build Canada Homes primarily focuses on non-market housing, where rents are linked to income. Non-market housing represents about five per cent of overall residential construction in the country. The agency also partners with developers to build middle-class affordable homes and promotes modern construction methods such as modular, factory-built, panelized, and prefabricated housing to shorten timelines and lower costs.
Federal Housing Minister Gregor Robertson acknowledges Ottawa's long absence from housing affordability leadership and states this is changing. Kevin Fettig notes that the Canadian government stopped funding and building new affordable housing for roughly three decades due to fiscal priorities and debt concerns, a period that included mortgage interest rates reaching 14 per cent in the late 1980s and early 1990s.
Recent efforts include an announced partnership between Ottawa and Alberta to build at least 1,460 affordable apartments and townhouses through Build Canada Homes. In Ontario, measures such as an HST rebate and reduced development charges have helped recalibrate overheated markets.
Despite these steps, significant supply gaps remain. According to the Canada Mortgage and Housing Corporation (CMHC), housing starts have hovered around 250,000 annually over the past two years. CMHC estimates that 417,000 to 469,000 units must be built every year by 2036 to restore 2019 affordability levels. Pent-up demand exists among younger Canadians and newcomers, and the ongoing supply gap puts future affordability at risk.