A little over a year ago, Prime Minister Mark Carney unveiled the launch of Build Canada Homes in Ottawa. This initiative by the federal government aims to address the housing crisis and expedite residential construction. Industry leaders have been expressing concerns about the slow pace of housing development nationwide.
Build Canada Homes has committed to supporting the construction of approximately 19,000 affordable housing units across the country, with only about 2,000 currently under construction. Dave Wilkes, the president and CEO of the Building Industry and Land Development Association in Toronto, emphasized the need for faster progress in an interview.
The federal housing agency transitioned into a Crown corporation in July, following the enactment of the Build Canada Homes Act. Much of the past year involved overcoming bureaucratic hurdles, securing land transfers, and finalizing intergovernmental agreements.
According to Build Canada Homes spokesperson Joshua Coke, the agency recognizes the pressing demand for affordable housing in Canada. The focus of the agency is on constructing non-market housing, where rents are income-linked rather than based on market rates. Additionally, partnerships with developers are in place to build affordable homes for the middle class.
Kevin Fettig, the president of CMI Financial, highlighted that both Conservative and Liberal governments had ceased funding and constructing new affordable housing for approximately three decades. The absence of federal support for housing affordability was acknowledged by Federal Housing Minister Gregor Robertson, who emphasized the current government’s commitment to change this narrative.
The Build Canada Homes approach involves providing support to builders, developers, and community partners to expedite residential projects. This strategy is expected to yield positive outcomes over time. The Canada Mortgage and Housing Corporation (CMHC) reported that the housing market, including non-market segments, is facing a significant supply gap that threatens future affordability.
CMHC’s chief economist, Mathieu Laberge, stressed the need to double the current pace of housing starts to restore affordability levels seen in 2019. Laberge emphasized the importance of addressing the pent-up demand from younger Canadians and newcomers across all housing segments.
Wilkes highlighted the positive impact of measures like the HST rebate and reductions in development charges in Ontario on housing market dynamics. The partnership between Ottawa and Alberta to construct affordable housing units signifies a step towards addressing the growing demand for housing in rapidly expanding provinces.
Build Canada Homes is mandated to promote modern construction methods like modular and prefabricated housing to expedite construction timelines. Minister Robertson emphasized the importance of industry modernization to achieve faster and more affordable housing solutions.