A bit over a year ago, Prime Minister Mark Carney announced the launch of Build Canada Homes in Ottawa to address the housing crisis and expedite residential construction. The initiative aims to increase the supply of affordable housing in response to concerns from industry leaders about the slow pace of housing development nationwide.
Build Canada Homes has committed to supporting the construction of approximately 19,000 affordable units across the country, with around 2,000 units currently under construction. Dave Wilkes, the president and CEO of the Building Industry and Land Development Association in Toronto, expressed a desire for faster progress, emphasizing the industry’s need for efficiency.
The federal housing agency transitioned to a Crown corporation in July, following the Build Canada Homes Act receiving royal assent. Much of the past year was dedicated to overcoming bureaucratic obstacles, facilitating land transfers, and establishing intergovernmental agreements.
Joshua Coke, a spokesperson for Build Canada Homes, highlighted the pressing demand for affordable housing in Canada, emphasizing the need for increased construction speed and scale to address the housing affordability crisis. The agency focuses on developing non-market housing linked to income levels and collaborates with developers to create affordable housing for the middle class.
Kevin Fettig, president of CMI Financial, noted a historical lack of government funding for affordable housing over the past three decades. Ottawa had reduced spending on housing initiatives, phased out the federal co-operative housing program, and halted the construction of new affordable housing units.
Federal Housing Minister Gregor Robertson acknowledged the government’s prolonged absence in addressing housing affordability issues and expressed a commitment to rectifying the situation. The Build Canada Homes approach, aimed at streamlining residential projects through support for builders and developers, is expected to yield positive outcomes in the long run.
The Canada Mortgage and Housing Corporation (CMHC) highlighted a significant supply gap in the housing market, emphasizing the need for increased construction to restore affordability levels. CMHC’s chief economist, Mathieu Laberge, stressed the necessity of building between 417,000 to 469,000 units annually by 2036 to meet affordability goals.
Wilkes mentioned that measures like the HST rebate and reduction in development charges in Ontario have helped balance overheated housing markets, leading to increased housing supply. Ottawa recently announced a partnership with Alberta to construct over 1,460 affordable housing units through Build Canada Homes to cater to the province’s rapid growth.
The new Crown corporation is focused on promoting innovative construction methods, such as modular and prefabricated housing, to expedite construction processes and enhance affordability. Minister Robertson emphasized the importance of modernizing the industry to achieve faster and more cost-effective construction practices.