Prime Minister Mark Carney revealed on Sunday the establishment of Build Canada Homes, a new federal agency tasked with overseeing housing programs. This initiative fulfills the Liberals’ campaign promise to increase housing construction. Build Canada Homes is positioned as a central agency to manage new affordable housing initiatives at the federal level.
Carney emphasized that the agency will accelerate housing construction nationwide by facilitating the development of supportive and transitional housing in partnership with provinces, territories, and Indigenous communities. It aims to enhance deeply affordable and community housing while collaborating with private developers to construct homes for the middle class. Ana Bailão, a former Toronto city councillor, has been appointed as the CEO of Build Canada Homes.
The agency will have the authority to approve construction on public lands and provide initial funding for housing projects. Carney announced a budget of $13 billion for the agency, earmarked to support the construction of 4,000 modular homes across six initial sites in Ottawa, Edmonton, Winnipeg, Toronto, Longueuil, Que., and Dartmouth, N.S. The construction of these homes is anticipated to commence next year.
Opposition Leader Pierre Poilievre criticized Carney’s housing strategy, arguing that it introduces unnecessary bureaucracy. Poilievre proposed his own housing policies, suggesting incentivizing municipalities to streamline the permitting process and reduce development fees by linking infrastructure funding to homebuilding. He also recommended eliminating the capital gains tax on reinvested funds in home construction and removing the federal sales tax on homes under $1.3 million.
A recent report from the Canada Mortgage and Housing Corporation (CMHC) highlighted robust housing starts in the first half of the year, albeit with concerns in expensive markets like Toronto and Vancouver. The report indicated a slowdown in construction in these cities compared to previous years. Toronto, in particular, is experiencing a significant decline in new condominium construction, with projections suggesting a prolonged period of inadequate housing starts to address affordability challenges.
The CMHC report also noted strong homebuilding activity in cities such as Calgary, Edmonton, Montreal, Ottawa, and Halifax, primarily driven by the construction of rental apartments. The agency forecasted a need for nearly double the current housing starts by 2035 to meet growing demand, estimating a requirement of 480,000 homes annually.
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