Federal Housing Agency Launches Without Specific Construction Targets
Housing and Infrastructure Minister Gregor Robertson tabled legislation on Thursday to establish the federal government's new affordable housing agency, Build Canada Homes, while acknowledging the organization has no predetermined targets for the number of homes it will construct.
During a press conference on Parliament Hill in Ottawa, Robertson stated, "There aren't top-line targets set for the number of homes to build." He emphasized that $13 billion allocated in Budget 2025 to Build Canada Homes and Canada Lands Company combined would be leveraged for maximum delivery of affordable housing across the nation.
Progress and Partnerships Already Underway
Introduced by the federal government in September, Build Canada Homes is designed to primarily construct non-market housing at scale. The agency has already signed over 10 agreements with municipalities across Canada by leveraging public land and flexible federal financing mechanisms.
"We've advanced six major affordable housing projects on public lands that will create over 4,000 homes," Robertson explained. "We partnered with local governments to cut red tape, waive fees, and fast-track approvals."
Parliamentary Budget Officer's Critical Assessment
In December, the Parliamentary Budget Officer released a report estimating the agency's efforts would result in 26,000 directly funded units over the next five years. The federal government countered that this assessment doesn't account for units resulting from Build Canada Homes' partnerships with private developers and its $51-billion infrastructure fund.
More concerning is the PBO's projection that federal spending on housing programs is set to decline by 56 percent from $9.8 billion in 2025-26 to $4.3 billion in 2028-29. This reduction stems from the expiration of funding for existing programs and cuts outlined in Budget 2025.
Political Reactions and Broader Housing Context
NDP housing critic Jenny Kwan highlighted Canada's housing challenges in an interview, noting, "Canada's non-profit housing stock has dwindled to only about four and a half percent of its total housing stock, well below the G7 average." She pointed out that countries successfully addressing housing shortages typically maintain non-profit housing at approximately 20 percent of their total stock.
The Canada Mortgage and Housing Corporation estimates that to restore housing affordability to 2019 levels, homebuilding must double to between 430,000 and 480,000 units annually over the next decade. A recent Toronto-Dominion Bank report indicates Canada is currently building at an annualized pace of 264,000 units, with significant regional disparities including collapsing construction rates in Ontario.
Alternative Solutions Proposed
Conservative housing critic Scott Aitchison proposed a different approach, suggesting the federal government and provinces should eliminate GST/HST on all new homes under $1.3 million to stimulate development.
"No one makes more money on a house than all levels of government," Aitchison argued. "I would argue that the best way to get homes built in this country is to get government out of the way."
The launch of Build Canada Homes represents a significant federal initiative in addressing Canada's housing crisis, though questions remain about its measurable impact amid declining program funding and the absence of specific construction targets.
