Prime Minister Mark Carney has launched Build Canada Homes, a new federal agency tasked with “supercharging” housing construction and doubling the pace of homebuilding over the next decade. The ambitious $13-billion plan, announced Sunday in Nepean, Ont., begins with 4,000 homes on six federally owned sites in Toronto, Ottawa, Dartmouth, Longueuil, Winnipeg, and Edmonton.
Carney said the initiative will combine public land, private-sector partnerships, and Canadian-made building materials to accelerate construction to 500,000 homes per year for middle-class Canadians. “We’re transforming public-private co-operation to build homes at speeds not seen in generations — with Canadian workers, and Canadian materials,” he wrote on X.
Build Canada Homes will prioritize factory-built housing and a “direct-build” model to fast-track projects, focusing on affordable mixed-income communities. The plan also allocates $1.5 billion to a Canada Rental Protection Fund to help community housing groups acquire at-risk rental buildings, and $1 billion to build transitional and supportive housing for people experiencing or at risk of homelessness.
The Federation of Canadian Municipalities welcomed the announcement but warned that reaching the ambitious housing target will require significant infrastructure investments, including roads, transit, and water systems. “With the right federal tools — including infrastructure investments that keep pace with growth — we can build lasting solutions in communities across the country,” said FCM president Rebecca Bligh.
Advocacy groups such as the Canadian Alliance to End Homelessness emphasized the need for clear targets tied to outcomes like reducing homelessness and ensuring true affordability — defined as no more than 30 per cent of income spent on housing. They also called for Indigenous-led housing solutions and rapid programs to move people from homelessness into permanent homes.
Environmental groups praised the plan’s emphasis on modular construction but cautioned that new housing must meet high energy-efficiency standards and be climate-resilient. “Homes must be affordable to heat and cool and be resilient to extreme weather,” said Pembina Institute spokesperson Kevin Lockhart, adding that the Buy Canadian pledge could help strengthen domestic supply chains and boost local manufacturing jobs.
Carney framed the initiative as a nation-building project that will require cooperation across governments and sectors, urging an “all-hands-on-deck” approach to address Canada’s housing shortage.