Canada Launches $13 Billion Agency to Accelerate Affordable Housing Construction
The Government of Canada has established Build Canada Homes, a new federal agency with an initial capitalization of $13 billion, aimed at doubling the pace of housing construction over the next decade.
On September 14, 2025, the Government of Canada officially launched Build Canada Homes, a new federal agency dedicated to building affordable housing at scale. The announcement was made by Minister Sean Fraser in Trenton, Nova Scotia.
Build Canada Homes has received an initial capitalization of $13 billion to finance large housing projects. A key component of its strategy is leveraging public lands to reduce costs for private builders. To this end, the Canada Lands Company has been transferred under the Build Canada Homes portfolio, allowing the agency to utilize its land holdings specifically for affordable housing projects.
The initiative aims to double the pace of housing construction across the country over the next decade. To achieve this speed and sustainability, the agency will employ modern construction methods, including factory-built modular housing and mass timber.
Initially, Build Canada Homes will operate as a Special Operating Agency within Housing, Infrastructure and Communities Canada (HICC) before transitioning into a standalone federal agency. The launch represents a broader government effort to increase the supply of transitional, deeply affordable, and middle-class housing. Additionally, the program seeks to catalyze a new Canadian housing industry focused on modern manufacturing, which is expected to create high-paying careers by strengthening domestic supply chains.