Prime Minister Carney Unveils $13 Billion Initiative for Housing

Prime Minister Mark Carney has announced the establishment of a new federal housing agency, Build Canada Homes (BCH), which aims to significantly increase housing construction, improve affordability, and reduce homelessness across Canada. The initiative is backed by an initial investment of $13 billion in federal capital and will give BCH control over federal lands designated for housing development.

During the announcement on Sunday, Carney emphasized the government’s commitment to making housing more affordable. “Canada’s new government is relentlessly focused on bringing down housing costs. Central to that mission is rapidly scaling up the supply of homes,” he stated. The agency will operate as a special entity under the Department of Housing, Infrastructure and Communities Canada before becoming an independent federal body in the new year.

BCH’s formation will consolidate federal housing efforts by absorbing the Canada Lands Company (CLC) and its real estate assets, which include 88 federally owned properties totaling 1,144 acres (approximately 463 hectares). This land is suitable for residential development and is comparable in size to Vancouver’s Stanley Park or downtown Ottawa. Key sites earmarked for development include the Downsview Lands in Toronto and Confederation Heights in Ottawa, along with the Heather Lands and Jericho Lands in Vancouver, which involve partnerships with local Indigenous communities.

BCH’s strategy is anchored in three main pillars designed to streamline housing development. The first is to build at scale and speed through collaborations with industry, governments, and Indigenous communities, utilizing federal lands to eliminate land costs. The second focuses on modern construction techniques, prioritizing factory-built, modular, and mass timber housing. This approach aims to cut project timelines by up to 50% and reduce costs by as much as 20% through bulk procurement and long-term financing.

The final pillar of BCH’s strategy is a commitment to a “Buy Canadian” policy, ensuring that building materials such as lumber, steel, and aluminum are sourced domestically. This initiative is expected to bolster local supply chains and create jobs across the country.

To initiate its work, Carney outlined four immediate projects under BCH. The first involves developing six federal land sites in Dartmouth, Longueuil, Ottawa, Toronto, Winnipeg, and Edmonton, which will yield around 4,000 homes through modular and off-site construction methods. The overall federal land portfolio has the potential to accommodate up to 45,000 housing units.

Additionally, a $1.5 billion Rental Protection Fund will be established to help community housing organizations acquire at-risk apartment buildings, ensuring their affordability over the long term. Another $1 billion will be allocated for transitional and supportive housing, with plans to collaborate with provincial, territorial, municipal, and Indigenous partners to integrate new housing with employment and health care services. Ottawa is also collaborating with the Nunavut Housing Corporation to create over 700 affordable and supportive homes, with approximately 30% of these units to be constructed using modern building techniques.

The inaugural CEO of Build Canada Homes, Ana Bailao, previously served as Toronto’s deputy mayor and led affordable housing initiatives at Dream Unlimited. She expressed enthusiasm for the agency’s mission, stating, “At Build Canada Homes, we are bringing together government, industry, and communities to build homes faster, smarter, and more sustainably.” Bailao emphasized that the goal extends beyond merely constructing housing units; it aims to foster opportunities and dignity for all Canadians.

Gregor Robertson, the federal housing minister and former mayor of Vancouver, reiterated the agency’s commitment to enhancing housing quality, stating, “It’s not just about building more — it’s about building better and building bolder.” He highlighted BCH’s role in leveraging public lands and accelerating affordable home building to achieve tangible outcomes for Canadians.

As the government moves forward with these initiatives, further measures aimed at lowering construction costs and attracting private investment are expected to be detailed in the upcoming federal budget for 2025.