Prime Minister Mark Carney revealed on Sunday the establishment of Build Canada Homes, a novel federal agency tasked with supervising federal housing initiatives. This move aligns with the Liberals’ commitment to augment housing construction efforts. Build Canada Homes is positioned as a centralized entity overseeing new affordable housing projects at the federal level.
Carney emphasized that the agency will significantly boost housing construction nationwide by facilitating the development of supportive and transitional housing in collaboration with provinces, territories, and Indigenous communities. Furthermore, it aims to enhance the construction of deeply affordable and community housing while partnering with private developers to construct homes for the middle-income bracket. Former Toronto city councillor Ana Bailão was announced as the CEO of Build Canada Homes.
The agency possesses the authority to approve construction on public lands and provide funding during the initial phases of housing development ventures. Carney disclosed that a budget of $13 billion has been set aside for the agency, earmarked to support the construction of 4,000 modular homes across six initial sites nationwide, with a potential to expand to 45,000 units. These initial sites are located in Ottawa, Edmonton, Winnipeg, Toronto, Longueuil, Que., and Dartmouth, N.S. Construction of the 4,000 homes is projected to commence next year, as per a government insider.
Criticism from Conservative Leader Pierre Poilievre was directed at Carney’s housing strategy, with Poilievre suggesting that the prime minister is introducing unnecessary bureaucratic layers. Poilievre proposed modifications to his campaign pledges, advocating for the abolition of capital gains tax on reinvested funds in homebuilding and the removal of the five percent federal sales tax on home purchases under $1.3 million.
A recent report from the Canada Mortgage and Housing Corporation (CMHC) highlighted that while overall housing starts in the first half of this year were close to historical highs, concerns were raised about slowdowns in the housing markets of Toronto and Vancouver. Toronto is on track for its lowest annual housing starts in three decades, while Vancouver experienced a deceleration in construction compared to 2024.
The CMHC report also indicated a robust pace of homebuilding in cities like Calgary, Edmonton, Montreal, Ottawa, and Halifax during the initial half of the year, driven by the construction of rental apartments. It projected a need for Canada’s housing starts to nearly double by 2035 to meet escalating demand, with an anticipated rise to 480,000 homes annually.
