A little over a year ago, Prime Minister Mark Carney unveiled Build Canada Homes in Ottawa, a federal initiative aimed at addressing the housing crisis and expediting residential construction. The agency is dedicated to enhancing the delivery of affordable housing, a critical need as industry experts express concerns about the slow progress 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 of the Building Industry and Land Development Association in Toronto, emphasized the urgency to accelerate the process, stating that patience in the industry is measured in seconds.
Having become a Crown corporation in July, following the enactment of the Build Canada Homes Act, the agency has been focused on overcoming bureaucratic obstacles, finalizing land transfers, and establishing intergovernmental agreements. According to Build Canada Homes spokesperson Joshua Coke, the initiative marks just the start of efforts to address the overwhelming demand for affordable homes in Canada.
While Build Canada Homes primarily concentrates on constructing non-market housing, it also collaborates with developers to create affordable housing for the middle class. The aim is to increase the pace and scale of home construction to combat the housing affordability challenge, as highlighted by Coke.
Reflecting on the past, Kevin Fettig of CMI Financial pointed out that federal funding for affordable housing had diminished over the past three decades under various governments. However, Federal Housing Minister Gregor Robertson acknowledged this historical absence and emphasized the current government’s commitment to change this trajectory.
The Build Canada Homes approach involves empowering builders, developers, and community partners to expedite residential projects, with the belief that sustained efforts and investment will bridge the affordability gap over time. Even the market-priced segment of the housing market is lagging, with CMHC stressing the need to double the current pace of housing starts to restore affordability levels across the country by 2019.
CMHC’s chief economist, Mathieu Laberge, highlighted the necessity of constructing 417,000 to 469,000 housing units annually by 2036 to meet demand and ensure future affordability. Laberge emphasized the importance of both market and non-market housing in addressing affordability challenges, emphasizing the need for a comprehensive approach.
Wilkes noted that initiatives like the HST rebate and reduction in development charges in Ontario have helped alleviate housing market pressures, leading to increased housing supply. The recent partnership between Ottawa and Alberta to build affordable housing units signifies progress in addressing the housing needs of fast-growing provinces.
Build Canada Homes aims to promote innovative construction methods like modular and prefabricated housing to expedite construction timelines. Minister Robertson emphasized the importance of modernizing the industry to facilitate faster and more affordable housing construction.