Prime Minister Mark Carney announced a new federal agency, Build Canada Homes, with a $13-billion budget to double the pace of home building over the next decade. Speaking in Ottawa, he outlined a plan to use federal land, flexible financing, and modern construction methods to increase supply and reduce costs for Canadians facing high rents and barriers to ownership.
Build Canada Homes will focus on four priorities: transitional and supportive housing in collaboration with provinces, territories, municipalities, and Indigenous governments; deeply affordable and community housing for low-income households; partnerships with private developers to provide affordable homes for middle-income families; and a shift to modern construction methods to increase productivity.
The agency will use tools ranging from contributions and loans to equity investments and direct development. Large portfolios of projects will be approved together rather than one at a time, a change meant to cut duplication and shorten delays.
The Canada Lands Company will be transferred to the new agency’s portfolio. Carney pointed to 88 federal properties already listed as suitable for housing, covering 463 hectares, with instructions for cabinet ministers to identify more. He said the intent is to lower costs for builders and reduce rents and new-home prices for families.
Conventional building approaches are too slow and costly for Canada’s needs, Carney argued. Build Canada Homes will prioritize modular, mass-timber, and factory-built housing, which can be assembled in days or weeks and continue through winter.
According to the Prime Minister, factory-built housing can accelerate construction by up to 50 per cent, lower costs by 20 per cent, and reduce emissions by more than 20 per cent compared with traditional methods. A new Buy Canadian policy will also direct demand toward domestic steel, lumber, and aluminum, reinforcing supply chains and creating jobs.
Anna Balao has been appointed the agency’s first chief executive.
Initial measures will include:
- Developing six federal sites in Dartmouth, Longueuil, Ottawa, Toronto, Winnipeg, and Edmonton to build 4,000 factory-built homes, with capacity for up to 45,000 units.
- Creating a $1.5-billion Rental Protection Fund to acquire at-risk buildings and keep them affordable.
- Allocating $1-billion for supportive and transitional housing, paired with employment and health supports.
- Partnering with Nunavut’s housing corporation to deliver more than 700 affordable and supportive units, about 30 per cent of them factory-built.
Additional projects will be announced in the months ahead.
Carney noted that nearly half of Canadian households earn less than $90,000 annually and fall within the government’s affordability focus. He cited estimates from the Canada Mortgage and Housing Corporation that annual construction must increase from about 240,000 units to 450,000 to restore affordability.
He rejected criticism that the new agency represents another layer of bureaucracy, describing it instead as a focused body with clear authority, financial tools, and a significant land bank.
Carney also confirmed the federal deficit will be larger than last year’s, pointing to global trade disruptions, support for affected industries, and major housing investments. He said most of the $13-billion allocation will be recorded as investments rather than immediate expenses.
Carney described the launch of Build Canada Homes as part of a wider affordability agenda that includes tax changes and measures to strengthen incomes. “By building smart, building Canadian, building now, we are building Canada strong,” he said.