A year ago, Prime Minister Mark Carney unveiled Build Canada Homes in Ottawa to address the housing crisis and expedite residential construction. The initiative aims to enhance the delivery of affordable housing amid concerns from industry leaders about slow 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 currently under construction. Dave Wilkes, president of the Building Industry and Land Development Association in Toronto, expressed the need for faster progress, emphasizing the industry’s impatience.
The federal housing agency transitioned into a Crown corporation last July after receiving royal assent for the Build Canada Homes Act. Significant time was spent overcoming bureaucratic obstacles, securing land transfers, and finalizing intergovernmental agreements.
According to Build Canada Homes spokesperson Joshua Coke, the agency’s focus is on non-market housing linked to income levels, but it also collaborates with developers to create affordable homes for the middle class. The agency’s mission is to accelerate residential projects to combat the housing affordability crisis effectively.
Kevin Fettig of CMI Financial highlighted the long absence of federal funding for affordable housing, spanning nearly three decades under various governments. Ottawa’s reduced investment in housing initiatives and cessation of building new affordable units left a void in addressing affordability issues.
Federal Housing Minister Gregor Robertson acknowledged the historical lack of leadership in housing affordability and pledged to address the issue. The approach of Build Canada Homes in facilitating builders, developers, and community partners to expedite projects is expected to yield positive outcomes with time and effort.
Even with the current pace of housing starts around 250,000 annually, the Canada Mortgage and Housing Corporation (CMHC) emphasized the need to double this rate to restore affordability levels from 2019. CMHC projected that 417,000 to 469,000 units must be constructed annually by 2036 to meet affordability targets.
CMHC’s chief economist, Mathieu Laberge, stressed the importance of addressing the supply gap to prevent future affordability challenges, particularly considering the pent-up demand from younger demographics and newcomers. Laberge underlined the necessity of both market and non-market housing to tackle affordability issues effectively.
Recent measures such as HST rebates and reduced development charges in Ontario have helped alleviate housing market overheating, leading to increased housing supply. Ottawa’s partnership with Alberta to construct over 1,460 affordable units underscores the need for additional housing in rapidly growing provinces.
Build Canada Homes aims to promote innovative construction methods like modular and prefabricated housing to expedite projects and enhance affordability. Minister Robertson emphasized the importance of modernizing the industry to accelerate construction processes and reduce costs.