A little over a year ago, Prime Minister Mark Carney made an announcement in Ottawa regarding the launch of Build Canada Homes, a federal initiative aimed at addressing the housing crisis and expediting residential construction. The agency is committed to increasing the delivery of affordable housing, responding to concerns raised by industry leaders about the slow pace of housing development nationwide.
Build Canada Homes has pledged support for the construction of approximately 19,000 affordable housing 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 industry.
The federal housing agency transitioned into a Crown corporation in July after the Build Canada Homes Act was passed. Much of the past year has been dedicated to overcoming bureaucratic obstacles, 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 and acknowledges the need to accelerate construction. The focus is on developing non-market housing, linked to income rather than market rates, while also collaborating with developers to create affordable homes for the middle class.
Kevin Fettig, president of CMI Financial, highlighted a prolonged lack of government funding and construction of affordable housing over the past three decades by both Conservative and Liberal administrations. The absence of Ottawa in housing initiatives has led to significant affordability challenges.
Fettig and Federal Housing Minister Gregor Robertson emphasized the importance of Build Canada Homes’ approach in facilitating quicker residential projects through support for builders, developers, and community partners. The initiative aims to bridge the supply gap in the housing market, which poses a risk to future affordability.
The Canada Mortgage and Housing Corporation reported that current housing starts are insufficient to meet affordability targets set for 2019, necessitating a substantial increase in annual construction. Mathieu Laberge, the CMHC chief economist, stressed the need for a balanced approach to housing construction to address the diverse affordability challenges across the country.
Efforts to enhance affordability include measures like the HST rebate and reduced development charges in Ontario, which have positively impacted housing supply in overheated markets like Toronto. Recent partnerships between Ottawa and provinces, such as Alberta, aim to address the growing demand for affordable housing through initiatives like Build Canada Homes.
The new Crown corporation is focused on promoting innovative construction methods like modular and prefabricated housing to expedite projects and ensure cost-effectiveness. Robertson emphasized the importance of modernizing the industry to facilitate faster and more affordable housing construction.