Based on coverage from The Star, Castanet, and Chat News Today.
Federal Push to Boost Affordable Housing
Canada's federal housing minister, Gregor Robertson, is on a mission to accelerate homebuilding across the country, particularly focusing on affordable housing projects. With the launch of the Build Canada Homes agency, the government aims to entice developers who have been hesitant to engage in affordable housing initiatives. Robertson, who previously served as Vancouver's mayor, is now tackling one of Canada's most pressing issues: housing affordability.
Build Canada Homes: A New Approach
Launched in September with a $13 billion initial capitalization, Build Canada Homes is tasked with scaling up "non-market" housing, which includes projects supported by government or other sources, allowing units to be rented below market rates. The agency's goal is to double the pace of home construction, a key promise of the Liberal government. One of its first projects, the Arbo development in Toronto, will feature 540 units, with at least 40 per cent designated as affordable housing.
Mixed Results in Housing Starts
The Canada Mortgage and Housing Corp. reported a 5.6 per cent increase in housing starts in 2025, driven by activity in Alberta and Quebec. However, Ontario and British Columbia saw declines, and momentum stalled in the fall. Robertson acknowledges these mixed results and emphasizes the need for private sector involvement to meet the government's ambitious targets. The private sector's pace is influenced by market conditions like interest rates and material prices, which are beyond government control.
Engaging Financial Institutions
To bridge the affordable housing gap, Robertson is seeking to involve Canadian banks and pension funds in financing these projects. By reducing risks associated with affordable housing, the government hopes to attract capital from these institutions. Robertson mentioned that Ana Bailao, CEO of Build Canada Homes and former deputy mayor of Toronto, is actively working to secure new sources of capital.
Challenges and Opportunities
Housing policy expert Mike Moffatt supports the idea of government intervention to stabilize housing cycles but warns of timing challenges. If the government moves too slowly, it might miss opportunities to boost affordable housing supply. Additionally, Moffatt points out the difficulty in convincing financial institutions to invest in non-profit housing, as their primary duty is to maximize profits for beneficiaries and shareholders.
Looking Ahead
Robertson remains optimistic about the potential for a "win-win" scenario that benefits both the economy and affordable housing. With 450 applications already received by Build Canada Homes, the agency is poised to play a significant role in shaping Canada's housing landscape. As efforts ramp up, Canadians will be watching closely to see how these initiatives unfold and impact the housing market.
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