A little over a year ago, Prime Minister Mark Carney made an announcement in Ottawa regarding the launch of Build Canada Homes, a federal initiative aimed at addressing the housing crisis and expediting residential construction. The agency is focused on increasing the supply of affordable housing as concerns grow within the industry about the slow pace of housing development nationwide.
Build Canada Homes has already committed to supporting the construction of approximately 19,000 affordable units across the country, with only around 2,000 units currently under construction. According to Dave Wilkes, the president and CEO of the Building Industry and Land Development Association in Toronto, there is a need to accelerate the process further, as the industry operates under tight timelines.
The federal housing agency transitioned to a Crown corporation in July, shortly after the Build Canada Homes Act was enacted. Much of the past year has been dedicated to overcoming bureaucratic obstacles, finalizing land transfers, and establishing intergovernmental agreements.
Acknowledging the intense pressure on Canada’s housing sector due to the high demand for affordable homes, Build Canada Homes spokesperson Joshua Coke emphasized the need for increased construction speed and scale to address the housing affordability challenge effectively.
Kevin Fettig, president of CMI Financial, highlighted the prolonged absence of federal funding and construction of affordable housing over the past three decades, leading to a significant gap in the market. The lack of focus on affordability during this period has resulted in challenges that are now being addressed through initiatives like Build Canada Homes.
The approach of Build Canada Homes, which provides support to builders, developers, and community partners to expedite residential projects, is expected to yield positive outcomes over time. However, there is still a significant supply gap in both market-priced and non-market housing segments, as highlighted by the Canada Mortgage and Housing Corporation (CMHC).
CMHC’s chief economist, Mathieu Laberge, emphasized the need for a substantial increase in annual housing starts to restore affordability across the country. The demand for new housing units is driven by a growing population, especially among younger Canadians and newcomers, creating an urgent need for diverse housing solutions.
Wilkes noted that policy changes in Ontario, such as the HST rebate and reduction in development charges, have positively impacted housing markets by encouraging more supply. Additionally, recent collaborations between the federal government and provinces, like the partnership with Alberta to build affordable housing units, are steps towards addressing the pressing housing needs in rapidly growing regions.
Build Canada Homes aims to promote innovative construction methods like modular and prefabricated housing to streamline construction processes and enhance affordability. Federal Housing Minister Gregor Robertson emphasized the importance of modernizing the industry to facilitate faster and more cost-effective construction practices.
