A little over a year ago, Prime Minister Mark Carney made an announcement in Ottawa against the backdrop of partially constructed prefabricated houses, launching Build Canada Homes, a federal initiative aimed at addressing the housing crisis and expediting residential construction.
The initiative is set to enhance the production of affordable housing, addressing concerns from industry leaders regarding the slow progress of housing development nationwide. Build Canada Homes has already committed to supporting the construction of approximately 19,000 affordable units across the country, with around 2,000 of these currently under construction.
Dave Wilkes, the president and CEO of the Building Industry and Land Development Association in Toronto, stated in an interview that there is room to accelerate the process further. He emphasized the industry’s need for prompt action, noting the industry’s impatience for progress.
The federal housing agency transitioned into a Crown corporation in July, following the royal assent of the Build Canada Homes Act. 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, this phase marks the initial stages of the agency’s efforts. With a surge in demand for affordable housing outpacing the current supply, the agency aims to alleviate this pressure by focusing on non-market housing and collaborating with developers to create affordable homes for middle-class Canadians.
Kevin Fettig, president of CMI Financial, highlighted the prolonged absence of federal support for affordable housing over the past three decades under both Conservative and Liberal governments. The reduction in funding, including the discontinuation of new affordable housing projects, led to a lack of focus on affordability, creating challenges that have gradually emerged.
Federal Housing Minister Gregor Robertson acknowledged the historical neglect in addressing housing affordability and expressed a commitment to changing this trajectory moving forward.
Build Canada Homes’ strategy involves equipping builders, developers, and community partners with the necessary tools to expedite residential projects, aiming to bridge the existing supply gap and enhance affordability in the housing market.
The Canada Mortgage and Housing Corporation (CMHC) reported that around 417,000 to 469,000 units need to be constructed annually by 2036 to restore affordability levels from 2019. This supply shortage poses a threat to future affordability, particularly for younger Canadians and newcomers.
Wilkes noted that measures such as the HST rebate and reduced development charges in Ontario have helped balance overheated housing markets like Toronto and its environs, leading to an increase in housing supply.
The recent collaboration between Ottawa and the government of Alberta to construct affordable housing units underscores the pressing need for new housing developments in rapidly growing provinces. Build Canada Homes aims to modernize construction methods, including modular and prefabricated housing, to expedite building processes and enhance affordability.
The partnership with Alberta is part of the Crown corporation’s mandate to promote innovative construction techniques and streamline the industry to facilitate faster and more cost-effective housing solutions.