Build Canada Homes is a new federal agency that will build affordable housing at scale. The focus will primarily be on creating the condition for a high-capacity, growth-oriented non-market housing sector, supporting a mix of income needs while advancing social, community and equity-based goals. The Agency will leverage public lands currently under the Canada Lands Company portfolio. It will also offer flexible financial incentives, attract private capital, fast-track approvals, prioritize large portfolio projects, and support modern manufacturers (e.g., factory-built, mass timber, prefabricated, and modular housing) using Canadian technology, workers, and lumber.
Build Canada Homes allocates $1 billion to build transitional and supportive housing to address homelessness. $1.5 billion is allocated to The Rental Protection Fund, which first launched in 2024. The Rental Protection Fund provides loans and contributions to the community housing sector for the purpose of acquiring apartments to preserve affordability of rents over the long-term.
Affordable housing remains an elusive and urgent issue for Canadians, further strained by challenges in the cost, timeline, and incentives for developing new, and protecting existing, affordable rental stock. Build Canada Homes aims to derisk, simplify, and expedite the development and maintenance of affordable housing units with flexible financial tools, streamlined approval processes, public land access to take lands costs out of the equation, and development expertise all under one roof.
Build Canada Homes promotes modern construction methods like modular, prefabricated, factory-built, and mass timber, benefitting industrialized construction firms. Considering the ambitious construction goals and exclusive procurement from Canadian suppliers, there will be higher demand for Canadian builders, contractors, construction labour, and construction materials and technology. Private developers will be recruited to partner on these projects, especially those willing and able to manage large rental portfolio projects and utilize innovative methods with Canadian suppliers and labour.
Other key stakeholders include community housing providers which operate non-market housing, considering the wave of newly constructed non-market housing expected, on top of the Rental Protection Fund available to finance their acquisitions of existing apartments.
Build Canada Homes is currently working with stakeholders to develop six sites on public lands for a total of 4,000 factory-built homes, with large proportions of the new housing committed to the non-market sector:
- Village at Griesbach – Edmonton, AB
- Naawi-Oodena – Winnipeg, MB
- Arbo Downsview – Toronto, ON
- 1495 Heron Road – Ottawa, ON
- Pointe de Longueuil – Longueuil, QC
- Shannon Park – Dartmouth, NS
Budget 2025 also projects additional capacity of up to 45,000 new housing units across the Canada Lands Company's portfolio.
$13 billion initial investment allocated over five years on a cash basis, starting in 2025-26. Much of this funding will be directed to new developments on public lands, such as the examples discussed previously. Also included in this funding is $1 billion to build transitional and supportive housing for people who are homeless or at risk of homelessness, and $1.5 billion for the Canada Rental Protection Fund which will began in 2024 but will now fall under the authority of Build Canada Homes.
Build Canada Homes will work with Canadian partners throughout the development process, such as suppliers, builders and housing operators. Large portfolio projects will be prioritized and fast-tracked, and development will occur on public lands within the current Canada Lands Company portfolio. There will be significant emphasis on using modern construction methods like factory-built, mass timber, prefabricated, and modular housing. Projects will have strict affordability criteria to support a broad spectrum of income needs, and requirements for various forms of non-market housing to advance social, community, or equity-focussed goals. This includes the Rental Protection Fund, which requires the funds be used to acquire apartments to preserve affordable rents.
Build Canada Homes will forge public-private partnerships, leverage developable public land and affordable existing rental stock, and employ modernized, streamlined construction methods to increase the supply of housing appropriate for a wide spectrum of income needs, and to combat unaffordability.
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