Canada’s affordable housing crisis is monumental, and it’s impossible to solve without taking a fresh approach. The government’s new initiative, Build Canada Homes, aims to remedy that problem for millions of Canadians seeking a place to live without breaking the bank.
What is Build Canada Homes?
Build Canada Homes is a new federal agency announced by the government in September 2025. Its purpose is to build affordable housing at scale by leveraging public lands, offering flexible financial incentives, attracting private capital, facilitating large portfolio projects, and supporting modern manufacturers to build the homes that Canadians need.
In June, the Canada Mortgage and Housing Corporation (CMHC) reported that based on projected demand, up to 4.8 million new homes needed to be built over the next decade to restore affordability levels last seen in 2019.
“Canada’s new government is relentlessly focused on bringing down housing costs. Central to that mission is rapidly scaling up the supply of homes. Build Canada Homes will transform the way government works with the private sector to build,” said Prime Minister Mark Carney.
“We will create an entirely new housing industry using Canadian technology, Canadian workers, and Canadian resources, while giving builders the tools they need to build more, build sustainably, and build at scale.”
The Build Canada Homes program was launched with an initial $13 billion funding boost to fast-track the construction of new homes across the country. The agency will gain access to 463 hectares of public land, thereby streamlining the process to build homes faster by taking land costs out of the equation.
Build Canada Homes’ target demographic is low-income households and the middle class. The first wave of construction (roughly 4,000 houses) is set to break ground next year across six cities: Ottawa, Edmonton, Winnipeg, Toronto, Longueuil, and Dartmouth, with construction expected to break ground in the summer/fall of 2026. The Prime Minister’s press release states there will be an additional capacity of up to 45,000 units “across the portfolio.”
In addition, 700 units will be built in Nunavut in partnership with the Nunavut Housing Corporation, with approximately 30 per cent of the units built off-site using construction methods such as factory-built housing.
The Three-Pronged Strategy of Build Canada Homes
1. Build Innovative and Sustainable Homes
To deliver more homes as quickly as possible, Build Canada Homes is prioritizing factory-built housing and other innovative construction methods that can be scaled efficiently. The goal is to increase housing supply without compromising quality or affordability.
Sustainability is also a core focus. Projects will use certified Canadian wood, recycled materials, and low-emission products to reduce environmental impact while supporting local industries. The agency aims to incorporate low-carbon and net-zero technologies wherever possible, from energy-efficient designs to materials that improve long-term climate resilience.
What this means for homebuyers:
• More supply, sooner: Factory-built methods can shorten construction timelines.
• Lower prices: Building on public land helps reduce development costs.
• Greener homes: Expect more energy-efficient and climate-resilient builds.
• Long-term affordability: Homes are designed to stay accessible for future buyers.
2. Finance the Construction of Affordable Homes
Instead of approving projects one by one, Build Canada Homes plans to greenlight developments in bulk. Speeding up construction and encouraging multi-year projects that use inventive building methods are at the forefront of the plan.
The initiative will concentrate on homes for a wide range of Canadians, including students, seniors, and Indigenous communities. With federal investments, the agency will provide stable financing to housing builders and direct funds toward urgently needed projects such as supportive housing, transitional units, and deeply affordable homes. Its aim is to work closely with provinces, territories, municipalities, and Indigenous partners to improve access to housing for those most in need.
What this means for homebuyers:
• Faster development: Bulk project approvals mean homes can be built sooner; this is critical for northern Indigenous communities where the warmer seasons are shorter.
• More options: A broader range of affordable housing options for low- and middle-income Canadians who are increasingly priced out of the market.
• Greater stability: Long-term investments aim to keep housing affordable well into the future.
3. Reinvigorate the Canadian Housing Industry
The agency will help Canadian manufacturers expand their operations, strengthen domestic supply chains, and generate high-paying, sustainable jobs in the process. By using bulk procurement, long-term financing, and support for homegrown technologies, Build Canada Homes aims to scale up modern approaches such as modular and factory-built housing across the country.
A new Buy Canadian policy will guide this work. Projects that use Canadian-made materials such as lumber, steel, aluminum, and mass timber will be prioritized, ensuring the benefits of new construction flow directly into local economies.
What this means for homebuyers:
• Potential cost savings: Efficient, large-scale construction can lower overall costs.
• Canadian quality: Homes will rely on locally sourced materials and technologies.
• Economic benefits: A stronger domestic housing industry supports stable jobs and creates robust communities, where people feel confident to put down roots.
The Bottom Line: Build Canada Homes is a massive undertaking by the federal government to solve a housing crisis that has been worsening for years without course correction. With brand-new affordable housing set to hit the market as early as summer 2026, it won’t be long before Canadians can determine if the agency is truly the key to securing them a new home for less.
