A little over a year ago, Prime Minister Mark Carney made an announcement in Ottawa regarding the launch of Build Canada Homes, a federal government initiative aimed at addressing the housing crisis and expediting residential construction. The agency is committed to increasing the production of affordable housing, which comes at a time when industry experts are expressing concerns about the slow progress of housing development nationwide.
Build Canada Homes has pledged its support to construct approximately 19,000 affordable housing units across Canada, with only around 2,000 of these units currently under construction. Dave Wilkes, the president and CEO of the Building Industry and Land Development Association in Toronto, acknowledged that there is room for improvement in the speed of progress, stating that patience is a rare commodity in the industry.
The transition of the federal housing agency into a Crown corporation occurred in July, following the enactment of the Build Canada Homes Act. Much of the past year has been dedicated to overcoming bureaucratic obstacles, finalizing land transfers, and establishing intergovernmental agreements.
According to Build Canada Homes spokesperson Joshua Coke, this is just the initial phase of the agency’s efforts. The demand for affordable housing in Canada surpasses the current supply, necessitating urgent action to address the housing sector’s challenges.
While the primary focus of the housing agency is on non-market housing, which ties rents to income rather than market rates, it is also collaborating with developers to construct affordable homes for Canada’s middle class. Coke emphasized the need for accelerated and expanded construction efforts to combat the housing affordability crisis effectively.
Kevin Fettig, president of CMI Financial, highlighted the prolonged absence of the Canadian government from funding and constructing new affordable housing over the past three decades, under both Conservative and Liberal administrations. This lack of focus on affordability has contributed to the current challenges faced in the housing market.
Federal Housing Minister Gregor Robertson acknowledged the historical neglect of Ottawa in addressing housing affordability issues and expressed a commitment to change this trajectory. The Build Canada Homes approach, which empowers builders, developers, and community partners to streamline residential projects, is expected to yield positive outcomes over time.
The supply gap in the housing market poses a significant risk to future affordability, as noted by CMHC chief economist Mathieu Laberge. Laberge emphasized the need for a substantial increase in housing construction to meet the demand and restore affordability levels seen in 2019 across the country.
Wilkes highlighted the positive impact of initiatives such as the HST rebate and reduced development charges in Ontario on housing markets like Toronto. These measures have facilitated increased supply and affordability in overheated markets.
In a recent development, Ottawa announced a collaboration with the government of Alberta to construct over 1,460 affordable housing units through Build Canada Homes, addressing the growing demand in the province. The new Crown corporation is also focused on promoting innovative construction methods to expedite building processes and reduce costs.
Overall, the efforts of Build Canada Homes and its partners aim to address the pressing housing challenges in Canada by increasing the supply of affordable housing and modernizing construction practices for more efficient and cost-effective development.