Ottawa, ON (Rajeev Sharma): In a sweeping new move to address Canada’s growing housing crisis, Prime Minister Mark Carney today unveiled Build Canada Homes, a landmark federal initiative aimed at massively increasing affordable housing supply through direct public intervention and partnerships with the private sector.
With homeownership and rental costs soaring beyond reach for many Canadians — especially younger generations — and homelessness on the rise in major cities, the federal government is taking bold action to reverse decades of underbuilding and bureaucratic delays.
“Too many Canadians are locked out of the housing market,” said Prime Minister Carney. “Build Canada Homes is about changing that — by building homes faster, at scale, and for every income level.”
What Is Build Canada Homes?
Build Canada Homes is a newly created federal agency with a sweeping mandate: build affordable housing across the country — quickly, sustainably, and in partnership with provinces, municipalities, Indigenous communities, and the private sector.
The agency will focus primarily on non-market housing for low-income households and transitional housing for those facing or at risk of homelessness. It will also work alongside private developers to deliver affordable housing for middle-income Canadians, including families squeezed out of urban housing markets.
Backed by an initial $13 billion investment, Build Canada Homes will function as a central hub — streamlining project approvals, unlocking federal land, offering flexible financing, and facilitating large-scale housing developments.
Three Key Pillars of the Strategy
1. Building at Scale with Public-Private Partnerships
The agency will act as a “one-stop shop” to coordinate housing projects nationwide. By consolidating federal land assets — including properties from the Canada Lands Company — Build Canada Homes will immediately have access to over 460 hectares of land (roughly the size of downtown Ottawa) suitable for housing.
To reduce barriers for builders, it will eliminate land acquisition costs, expedite permitting, and provide incentives to de-risk projects. Six flagship sites have already been identified to build 4,000 factory-built homes in cities including Toronto, Ottawa, Edmonton, Winnipeg, Dartmouth, and Longueuil — with up to 45,000 additional units planned.
2. Embracing Innovation and Speed
Build Canada Homes will prioritize modern methods of construction like modular and factory-built housing, with the goal of slashing construction timelines by up to 50% and costs by as much as 20%. These technologies also reduce emissions and allow for year-round building.
Bulk purchasing and long-term financing models will be introduced to scale production, while new housing projects will be designed with energy efficiency and sustainability at the forefront.
3. Prioritizing Canadian Materials and Jobs
Under a new Buy Canadian policy, Build Canada Homes will give preference to projects that source domestic materials such as Canadian lumber, aluminum, steel, and mass timber. The government hopes this will not only stimulate local industries but also build a resilient, homegrown housing sector that creates thousands of high-paying jobs nationwide.
Leadership and Initial Investments
To lead the new agency, Prime Minister Carney has appointed Ana Bailão as CEO of Build Canada Homes. Bailão is a respected housing advocate and former Toronto Deputy Mayor, known for her role in launching the city’s Housing Now program, which repurposed public land for affordable housing. She most recently worked in the private sector on affordable housing development.
“Canada needs an all-hands-on-deck approach to solve this crisis,” said Bailão. “Build Canada Homes will lead with urgency, innovation, and compassion.”
Alongside the agency launch, four major initiatives were announced:
- Factory-Built Housing Projects: First six developments on federal land, focusing on modular, affordable homes across six cities.
- $1.5 Billion Rental Protection Fund: Aimed at preserving existing affordable rental buildings by helping non-profits acquire at-risk units.
- $1 Billion for Homelessness Supports: Funding to build transitional and supportive housing in collaboration with provinces and Indigenous communities.
- Nunavut Partnership: Over 700 units of public and affordable housing to be built in the territory, with roughly 30% constructed off-site using modern techniques.
