Ottawa Launches Build Canada Homes to Address Housing Crisis

OTTAWA, September 14, 2025 – The federal government has announced a new initiative aimed at tackling Canada’s ongoing housing shortage. Prime Minister Mark Carney launched Build Canada Homes, a federal agency designed to accelerate the construction of affordable and supportive housing nationwide.

The agency will work with provinces, territories, municipalities, Indigenous communities, and private developers to increase the housing supply. Its mandate includes building transitional and supportive housing for people experiencing homelessness, creating deeply affordable units for low-income households, and partnering with the private sector to develop housing for the middle class.

Build Canada Homes will start with $13 billion in federal funding and access to public lands, including 88 federal properties spanning 463 hectares. The government plans to leverage these lands to reduce project costs, making large-scale housing projects more feasible for private builders.

The agency will also use modern construction techniques, such as modular and mass timber construction, aiming to cut building timelines by up to 50% and reduce construction costs by around 20%. The approach is also intended to lower carbon emissions and encourage sustainable construction practices.

Key Initiatives

• Direct-build projects: Six federal land sites in Dartmouth, Longueuil, Ottawa, Toronto, Winnipeg, and Edmonton will be prioritized, with an initial plan for 4,000 factory-built homes and capacity for up to 45,000 more units across other sites.
• Canada Rental Protection Fund: A $1.5 billion fund to help preserve existing affordable rental housing and prevent it from being lost to the private market.
• Transitional and supportive housing: $1 billion will be directed toward housing for people who are homeless or at risk, paired with employment and health care supports.
• Nunavut partnership: Build Canada Homes will collaborate with the Nunavut Housing Corporation to deliver over 700 public, affordable, and supportive units, with about 30% using off-site construction.

The initiative is intended to create a new Canadian housing industry, stimulate domestic supply chains through a Buy Canadian policy, and provide high-paying jobs in construction and related sectors. By working directly with private builders and streamlining approvals, the federal government aims to accelerate housing production nationwide.

While ambitious, the program faces potential hurdles. Canada’s construction industry is already under pressure from labor and material shortages. The success of Build Canada Homes will depend on coordination with provincial and municipal governments, and whether projects can be completed quickly enough to make a meaningful impact on housing affordability.

Build Canada Homes will begin project development immediately, with further investments and project announcements expected in the coming months. The agency is led by CEO Ana Bailão, a former Toronto deputy mayor and housing official, who brings experience in public-private housing initiatives.

The government also indicated additional measures will be included in Budget 2025 to further lower building costs and attract private capital to housing construction.