A little over a year ago, Prime Minister Mark Carney made an announcement in Ottawa about the launch of Build Canada Homes, a federal initiative aimed at addressing the housing crisis and expediting residential construction. The initiative aims to increase the supply of affordable housing amidst concerns from industry leaders about the slow pace of housing development nationwide.
Build Canada Homes has pledged to support 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 the need for faster progress in the construction industry.
The agency transitioned into a Crown corporation in July after the Build Canada Homes Act received royal assent. Much of the past year has been dedicated to overcoming bureaucratic obstacles, securing land transfers, and finalizing intergovernmental agreements.
Build Canada Homes spokesperson Joshua Coke highlighted the pressing demand for affordable homes in Canada, emphasizing the need for accelerated construction to meet this demand. The agency focuses on developing non-market housing, with rents based on income rather than market rates, while also collaborating with developers to build affordable homes for the middle class.
Kevin Fettig, president of CMI Financial, noted that the Canadian government had ceased funding and constructing new affordable housing for about three decades. Ottawa reduced spending on housing initiatives, terminated the federal co-operative housing program, and halted the construction of new affordable housing units.
Federal Housing Minister Gregor Robertson acknowledged the prolonged absence of Ottawa in addressing housing affordability and emphasized the current administration’s commitment to change this narrative. The approach of Build Canada Homes, which provides support to builders, developers, and community partners to expedite residential projects, is expected to yield positive outcomes in the long run.
The housing market is facing a significant supply gap, with housing starts hovering around 250,000 annually in recent years. To restore affordability levels from 2019, the Canada Mortgage and Housing Corporation (CMHC) Chief Economist Mathieu Laberge stated that the pace of housing starts must be doubled. CMHC estimates that 417,000 to 469,000 units need to be built each year by 2036 to achieve this goal.
Laberge emphasized the importance of addressing the supply gap to prevent future affordability challenges, noting a considerable demand from younger Canadians and newcomers for housing. Wilkes highlighted the positive impact of measures such as HST rebates and reduced development charges in Ontario on housing markets like Toronto.
Recently, a partnership was announced between Ottawa and the government of Alberta to construct at least 1,460 affordable apartments and townhouses through Build Canada Homes. This new supply is deemed crucial for a fast-growing province like Alberta. The Crown corporation is also focused on promoting modern construction methods to expedite building processes and enhance affordability.
Overall, efforts are being made to modernize the construction industry and ensure faster and more cost-effective housing development, as stated by Federal Housing Minister Gregor Robertson.