Canada’s government has announced new measures aimed at increasing housing supply and making homes more affordable, as part of a broader effort to strengthen the economy amid global uncertainty. With housing affordability worsening and new home sales in major cities falling below historical levels, the government says urgent action is needed to reduce costs, cut red tape, and accelerate construction. The slowdown in homebuilding has also led to job losses in skilled trades and construction, sectors seen as critical to addressing the country’s housing shortage.
To respond, the federal government has launched Build Canada Homes, a new agency focused on speeding up the construction of housing across the country, including transitional and supportive housing, deeply affordable homes, and community housing. This initiative is being supported by a wider package of housing programs worth about $40 billion, aimed at protecting construction jobs, increasing new housing supply, and improving affordability for Canadians. The government says housing remains central to its economic strategy and long-term growth plans.
As part of this effort, Finance Minister François-Philippe Champagne introduced Bill C-26, which would authorize $1.7 billion in immediate payments to provinces and territories to help improve housing supply, pending parliamentary approval. The funding is intended to unlock new housing development by supporting measures such as reducing development fees and levies on new home construction, as well as strengthening existing provincial and territorial programs that encourage housing projects. The government also pointed to Ontario’s recent HST-related move as an example of how such transfers can help stimulate supply.
The new funding also aligns with broader federal expectations that provinces and territories lower development charges in order to access support through the Build Communities Strong Fund. In addition, the money may be used to help provinces and territories improve internal trade, harmonize regulations, and boost productivity in the home construction sector. Federal officials say the legislation is designed to keep projects moving, support workers in the homebuilding industry, and ensure more homes are delivered faster to meet growing demand across Canada.
