A little over a year ago, Prime Minister Mark Carney announced the launch of Build Canada Homes, a federal initiative aimed at addressing the housing crisis and expediting residential construction. The agency is working to increase the production of affordable housing amid 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 only 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 into 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, securing land transfers, and finalizing intergovernmental agreements.
Recognizing the pressing need for affordable housing solutions, Build Canada Homes spokesperson Joshua Coke highlighted the substantial demand surpassing the available supply of affordable homes in Canada. The agency’s focus lies on constructing non-market housing, which offers income-linked rents, and collaborating with developers to build affordable homes for the middle class.
Kevin Fettig, president of CMI Financial, pointed out a historical lapse in government funding for affordable housing over the past three decades under successive Conservative and Liberal administrations. The absence of federal support led to a shortage of affordable housing units and a surge in home prices during the late ’80s and early ’90s.
Federal Housing Minister Gregor Robertson acknowledged Ottawa’s prolonged inactivity in addressing housing affordability issues, stating a renewed commitment to leadership in this area. The approach of Build Canada Homes, which empowers builders, developers, and community partners to accelerate residential projects, is expected to yield positive outcomes gradually.
The supply of market-priced housing is also falling short, with housing starts around 250,000 annually over the past two years, according to the Canada Mortgage and Housing Corporation (CMHC). CMHC’s chief economist, Mathieu Laberge, stressed the need to double the pace of housing starts to restore affordability levels seen in 2019 across the country.
Laberge highlighted a demand backlog from younger Canadians and newcomers, emphasizing the necessity for a comprehensive approach to address ongoing affordability challenges. Wilkes emphasized the positive impact of initiatives like the HST rebate and reduction in development charges in stimulating housing supply in overheated markets like Toronto.
Recent collaboration between Ottawa and Alberta to build affordable housing units reflects a step towards meeting the growing demand in fast-growing provinces. Build Canada Homes’ mandate includes promoting innovative construction methods like modular and prefabricated housing to expedite building processes.
Efforts to modernize the construction industry and enhance affordability align with the agency’s mission to address the pressing housing needs in Canada.
