The federal government has unveiled Build Canada Homes (BCH), a new $13 billion housing initiative aimed at delivering more affordable homes to Canadians. Prime Minister Mark Carney framed it as a major step toward tackling the nation’s long-running housing crisis.
“Canada’s new government is relentlessly focused on bringing down housing costs”, Carney said in the statement. “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.”
An initial slate of 4,000 factory-built homes is planned on federal sites in Dartmouth, Longueuil, Ottawa, Toronto, Winnipeg and Edmonton. Yet some observers argue Ottawa is misdiagnosing the problem. Sean Speer, a public policy analyst and former federal advisor, warned that the plan risks focusing too narrowly on non-market housing rather than the structural bottlenecks that limit private construction.
Federal push welcomed by municipalities
Municipal leaders are welcoming BHC as a sign of strong federal leadership on the housing crisis. The Federation of Canadian Municipalities (FCM) called the initiative a “united approach” that could help cities move forward with urgent housing projects and address homelessness.
“Build Canada Homes is an opportunity to work together to deliver the housing Canadians need,” said Rebecca Bligh, president of FCM, in a separate statement. “Municipalities are ready to help shape the right mix of housing to meet affordability and homelessness challenges. With the right federal tools… we can build lasting solutions in communities across the country.”
According to the federal release, BCH will partner with provinces, municipalities, Indigenous governments and other stakeholders to deliver a mix of affordable, supportive and transitional housing.
Officials say the program will use modern construction methods, including modular homes and mass timber, and prioritize Canadian-made materials to boost domestic supply chains.
The federal plan also emphasizes measures intended to speed up delivery, reduce costs and support local jobs in construction and manufacturing.
Critics say Ottawa is missing the real problem
However, not everyone is convinced that BCH can address Canada’s housing problems. Speer argues the government is taking a misstep by focusing narrowly on non-market units.
“Build Canada Homes resets the government’s understanding of the problem,” Speer wrote in recent commentary on The Hub. “Read the launch materials, and you won’t find a plan to take on municipal gatekeeping or development charges. Instead, you’ll find promises about fighting homelessness and building deeply affordable housing.”
Speer notes the scale of the plan falls far short of what’s needed. According to CMHC, Canada has the potential to build up to 400,000 new homes each year, while BCH’s initial projects amount to just a few thousand. “That’s about 1 percent of the annual target — and risks displacing private activity rather than adding to it,” he wrote.
Above all, Speer argues that a lack of social housing is not necessarily the source of Canada’s housing crisis. Rather, it’s the sheer lack of affordability, even for those above median income levels.
“Unless Ottawa intends to extend the provision of social housing far up the income distribution”, writes Speer, “Build Canada Homes is a response to less than 5 percent of the housing continuum.”
Competing visions for a housing fix
The debate reflects competing views of how best to solve Canada’s housing crunch. Ottawa is positioning BCH as a vehicle for affordability and social housing, while municipalities emphasize the need for resources to expand supply. Critics counter that without systemic reforms — including zoning changes, faster approvals and aligning immigration with construction capacity — affordability pressures will continue to persist.
With Canada’s housing shortfall now estimated in the millions of units, the question is whether BCH can meaningfully shift supply or whether it represents, as Speer argues, “a reversion” to policies that address only a narrow slice of the market.
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