A little over a year ago, Prime Minister Mark Carney unveiled Build Canada Homes in Ottawa, aiming to address the housing crisis and expedite residential construction. This initiative, backed by the federal government, aims to ramp up the provision of affordable housing amidst concerns from industry leaders about the sluggish pace of housing development nationwide.
Build Canada Homes has committed to supporting the construction of approximately 19,000 affordable housing units across the country, with only about 2,000 currently under construction. Dave Wilkes, president and CEO of the Building Industry and Land Development Association in Toronto, expressed the need for faster progress, emphasizing the industry’s impatience in terms of timing.
The federal housing agency transitioned into a Crown corporation in July following the Build Canada Homes Act receiving royal assent. Significant time has been devoted to navigating bureaucratic processes, finalizing land transfers, and establishing intergovernmental agreements.
The agency’s spokesperson, Joshua Coke, highlighted the pressing demand for affordable homes surpassing the current supply, emphasizing the urgency of the situation. While focusing primarily on non-market housing tied to income levels rather than market rates, Build Canada Homes is also collaborating with developers to construct affordable homes for the middle class.
Kevin Fettig of CMI Financial noted the prolonged absence of federal funding and construction of affordable housing over the past three decades under both Conservative and Liberal governments. Ottawa shifted its fiscal priorities during the late ’80s and early ’90s, leading to reduced spending on housing initiatives and the discontinuation of new affordable housing projects.
Federal Housing Minister Gregor Robertson acknowledged Ottawa’s historical neglect in addressing housing affordability and expressed a commitment to rectifying this issue. The approach taken by Build Canada Homes, which involves empowering builders, developers, and community partners to accelerate residential projects, is expected to yield positive outcomes over time, albeit requiring sustained time, effort, and financial investment.
The supply gap in the housing market poses a significant challenge, with housing starts hovering around 250,000 annually in recent years. According to CMHC chief economist Mathieu Laberge, the pace of housing starts needs to double to restore affordability levels seen in 2019, with an estimated 417,000 to 469,000 units needing to be built yearly by 2036 to achieve this goal.
Laberge emphasized the necessity of addressing the pent-up demand from younger Canadians and newcomers by diversifying housing options, including both market-priced and non-market housing. Wilkes highlighted the positive impact of initiatives like HST rebates and reduced development charges in Ontario on housing markets, leading to increased supply and market stability.
In a recent development, Ottawa partnered with the government of Alberta to construct at least 1,460 affordable housing units through Build Canada Homes, addressing the growing demand in the province. The Crown corporation’s mandate includes promoting innovative construction methods to expedite building processes and enhance affordability, aligning with efforts to modernize the industry.
Overall, the concerted efforts of Build Canada Homes and collaborations with various stakeholders aim to tackle the housing crisis, increase affordable housing options, and streamline residential construction processes in Canada.
