Housing

Market Housing Supply Gap
Apartment Construction Loan Program
Housing Accelerator Fund
Modular Housing / Construction
Affordable and Non-Market Housing
Affordable Housing Fund
Exhaustion of Loans in the Affordable Housing Fund
Rapid Housing Initiative
Canada Housing Benefit
Housing, Affordability, and Climate
Housing and Immigration
Toronto and Vancouver Housing Markets
Government Position on Housing Prices
Interest Rates and Housing
Defining Housing Affordability
Build Canada Homes
Canada's Housing Plan
National Housing Strategy
Indigenous and Northern Housing
Housing and Infrastructure in the Territories / North
Funding and Programs for Shelters for Survivors of Gender-based Violence
Canada Rental Protection Fund
Short-term Rental Enforcement Fund
Rental Protections and Tenant Rights

2. Market Housing Supply Gap

Issue / question

What is the Government of Canada doing to address the market housing supply gap?

Suggested response

Home building has not kept up with demand. Increasing building costs, labour shortages, restrictive zoning, excessive permitting, and other factors have resulted in housing prices and rental rates outpacing the incomes of Canadians.
This government will use every tool at its disposal to build homes at a scale and at a speed not seen for decades. We will remove the GST for homes under $1 million for first time homebuyers, and reduce it for those homes between $1 million and $1.5 million.
This government will work to cut development charges in half for multi-unit housing to get builders building again. We will change the way we build in this country by investing in a homegrown building industry that supports workers and businesses and drives the adoption of innovative Canadian building technologies.

Key points

Federal actions taken to increase the supply of housing include:

removing the GST on construction of new rental buildings;
$30 billion top-up to the Apartment Construction Loan Program to boost the construction of rental housing;
$4.4 billion Housing Accelerator Fund to remove barriers to housing construction; and
Housing Design Catalogue to streamline how homes are built.

Background

Canada is facing a housing supply gap, with the growth in demand for housing exceeding new construction. This scarcity has resulted in housing prices and rents growing far faster than Canadians' income.
One of the main drivers of the housing shortages has been the strong growth in housing demand driven by immigration-led population growth. Restrictive and time-consuming planning processes, increasing building costs and low productivity in the construction sector have also impacted the pace of home construction.
Various published estimates of the supply gap, based on different methodologies, indicate that millions of new homes need to be built over the next decade to meet the demand for housing. The key supply gap estimates include:

In 2022 and 2023, Canada Mortgage and Housing Corporation (CMHC) released a Housing Supply Gap report estimating that 3.5 million housing units beyond expected production would be needed to restore affordability to 2004 levels by 2030.

In 2024, the Parliamentary Budget Office estimated that 1.3 million additional housing units, on top of baseline completions, will be needed by 2030 to return the vacancy rate to its long-term historical average.

Federal intervention aimed at increasing the supply of market housing include:

Removing the Goods and Services Tax on the construction of new rental buildings to bring down the costs of homebuilding;

Providing a $30 billion top-up to a flagship housing program – the Apartment Construction Loan Program – that provides low-interest loans to builders and developers to boost the construction of rental housing;

Launching the $4.4 billion Housing Accelerator Fund – a program that incentivizes local government to remove barriers that slow the construction of housing; and

Launching a Housing Design Catalogue to help change how homes are built by simplifying the delivery of housing across the country.

To better match immigration with the capacity to build new homes, the Government of Canada announced, in the fall 2024, a reduction in permanent resident targets from 500,000 to 395,000 in 2025, with admissions falling to 365,000 in 2027. This decrease was coupled with cuts to temporary immigration to 5% of the total population by the end of 2026.

3. Apartment Construction Loan Program

Issue / question

How is the Apartment Construction Loan Program increasing the supply of rental housing?

Suggested response

The Apartment Construction Loan Program (ACLP) is a $55 billion program that provides low-cost loans to support the construction of rental housing across Canada. It includes $500 million for projects that use innovative construction techniques like prefabricated and modular housing.
As of March 2025, over $23 billion in loans have been committed through the program to support the creation of over 59,000 purpose-built rental homes. The program is targeting the construction of 131,000 new homes by 2031-32.
The ACLP, along with measures such as the removal of the GST on new rental projects and flexibilities offered through CMHC Mortgage Loan Insurance, have helped annual construction of rental apartments to roughly quadruple over the past decade.

Background

The Apartment Construction Loan Program (ACLP) provides low-cost loans to encourage the construction of rental housing across Canada and supports sustainable apartment projects in areas where there is a need for additional rental supply.
Eligible projects must include affordable rental housing units that meet minimum affordability requirements and maintain affordability for at least 10 years. Currently, at least 20% of units must have rents below 30% of the median total income of all families for the area.
Projects are prioritized when they commit to deliver energy efficiencies and accessibility features within the building design. ACLP has been updated to reference the 2020 building model codes.
The 2023 Fall Economic Statement and Budget 2024 each provided an additional $15 billion to the program. This brings the program's total contribution to over $55 billion to build over 131,000 new homes by 2031-32.

Of this amount, at least $100 million will be used to build homes above existing shops and businesses, and $500 million to homebuilders that use innovative construction techniques, such as modular housing, for new rental projects.

The 2023 Fall Economic Statement announced the renaming of the Rental Construction Financing Initiative to the Apartment Construction Loan Program.
The Government of Canada introduced program reforms to the ACLP in November 2024 to increase access and make it easier for builders to build., including:

Extending loan terms;
Extending access to financing to include housing for students and seniors;
Introducing a portfolio approach to eligibility requirements so builders can move forward on multiple sites at once;
Providing additional flexibility on affordability, energy efficiency, and accessibility requirements; and
Launching a new frequent builder stream to fast-track the application process for proven home builders.

Due to high demand for the ACLP, the 2024 Fall Economic Statement announced the acceleration of $2 billion in low-cost financing under the program to support building 4,000 homes faster.

4. Housing Accelerator Fund

Issue / question

How will the Housing Accelerator Fund increase housing supply?

Suggested response

Through the Housing Accelerator Fund, the Government of Canada is investing $4.4 billion to eliminate barriers to development and build more homes faster.
The Fund is supporting more than 200 communities across Canada by helping increase housing supply and build affordable, diverse and climate-resilient communities.
This government is committed to delivering on its target to lead the creation of approximately 750,000 permitted new homes in towns, cities, and Indigenous communities across Canada. For example, in Edmonton, the Fund has provided support to streamline approvals by implementing an online tool that allows some homebuilders to apply for a development permit and start building on the same day.

Key points

The Housing Accelerator Fund will provide $4.4 billion in funding until 2027-28.
241 agreements have been signed with local governments and the Province of Quebec to fast track 119,685 permits for new homes over the next three years.

Background

The Housing Accelerator Fund (HAF) was announced as part of Budget 2022, with an initial $4 billion in funding (over five years) until 2026-27 and a target to fast-track permits for at least 100,000 housing units over the next three years and lead to the creation of over 750,000 permitted homes over the next decade. Budget 2024 announced an additional $400 million in funding (bringing the total to $4.4 billion) until 2027-28.
HAF encourages local governments to implement lasting initiatives such as growing housing supply faster than the historical average, increasing densification, speeding up approval times, tackling NIMBYism, establishing inclusionary zoning bylaws, and encouraging public transit-oriented development. The application window for the second round of funding was open over the summer of 2024. Most agreements have now been finalized and will enable at least 12,000 more housing units.
Incentive funding can be used for investments in HAF action plans, affordable housing, housing-related infrastructure, or community-related infrastructure that supports housing. The framework for determining the amount of incentive funding includes base and top-up funding and an affordable housing bonus.
The Government of Canada signed 241 agreements under the first and second rounds of funding. This includes two agreements between the governments of Canada and Quebec, with a total contribution of $992 million to accelerate the construction of residential units.
The 2024 Fall Economic Statement listed all the communities with HAF agreements from the first round and committed to developing a public progress tracker. Communities' first annual progress reports were due between November 2024 and March 2025, and will be posted on Canada Mortgage and Housing Corporation's website.
Top performing communities were eligible to receive additional funding, up to 10% of the value of their original agreement, from the initial round's uncommitted funding. To be considered a top performer, communities met their unit forecasts, delivered on their HAF Action Plan commitments for the first year, and proposed additional initiatives to accelerate housing. Communities selected were announced in March 2025.
Based on successful applications to date, a list of 10 HAF best practices has been developed and was updated for Round 2. Municipalities are encouraged to align with these best practices when developing their plans.

5. Modular Housing / Construction

Issue / question

Can the prefabricated homes industry support the Government of Canada's target to build more homes?

Suggested response

This government will boost Canada's housing supply and double the pace of construction by supporting new approaches for building houses.
Prefabricated and modular housing can cut construction time in half, while costing less and being more energy efficient than traditional methods.
The Build Canada Homes initiative will foster innovative techniques and financing tools to reduce construction time and streamline regulations for prefabricated and modular homes.

Key point

Under the Build Canada Homes proposal, financing will be provided to speed up homebuilding and lower costs, with a focus on modular and prefabricated construction.

Background

Build Canada Homes

Under the Build Canada Homes proposal, financing will be provided to speed up homebuilding and lower costs, with a focus on modular and prefabricated construction. The proposal also includes regulatory streamlining, such as simplifying building codes and pre-approving standardized designs.

The Canadian modular housing industry

In 2022, the modular home industry generated approximately $2.3 billion in revenue and had approximately 7,500 employees.
Canada produces only around 2% of homes through off-site methods, well below the sector's potential and much lower than Sweden and Japan where off-site construction represents 45% to 15% of housing starts, respectively.
Most modular home industry employees work in enterprises located in Ontario, British Columbia, Quebec and Alberta.
Employment growth was significantly higher in the modular home industry compared to the residential building construction industry.

Existing Financing Initiatives Supporting Modular and Prefabricated Housing

Canada Mortgage and Housing Corporation's (CMHC) Housing Design Catalogue provides standardized, region-specific home designs (e.g., rowhouses, fourplexes, accessory dwelling units) that make it easier and faster for communities to add diverse housing options within existing neighbourhoods.
Next Generation Manufacturing Canada is administering the Advanced Manufacturing Homebuilding Challenge (AMHC) with $50 million in federal funding over two years, alongside $150 million leveraged from industry, for a total of $200 million in housing innovation investments. A further $250 million over three years will support a second intake of AMHC and fund additional modular, prefabrication, and other homebuilding innovations.
Regional Development Agencies received $50 million starting in 2024-25 through the Regional Homebuilding Innovation Initiative to support local innovative housing solutions across the country. For example, the Federal Economic Development Agency for Southern Ontario invested $2.5 million in BECC Modular to enhance its manufacturing capabilities, enabling the production of up to 2,200 modular housing structures per year.
The Affordable Housing Innovation Fund (AHIF) is a $615 million fund to provide funding to innovative building and financial models, such as modular and prefabricated construction, the resources to generate and test new ideas and explore better ways of meeting housing challenges.

6. Affordable and Non-Market Housing

Issue / question

What is the Government of Canada doing to build more affordable housing?

Suggested response

Helping Canadians access affordable and non-market housing is a key priority for this government.
By creating Build Canada Homes, this government will support affordable, non-market housing using innovative and sustainable methods in collaboration with all levels of government, Indigenous communities and both the non-for-profit and private sectors.
We will provide strong federal leadership with a direct role in building new housing through procurement, partnerships and predictable, scalable financing.

Key points

In 2021, 47% of renter households in Canada reported experiencing housing challenges related to cost, suitability, and quality.
Current federal investments total over $22.5 billion.

Background

Non-market housing, or community housing, provides affordable homes with below-market rents that grow at a slower pace relative to the market (i.e., generally in line with operating costs, rather than maximizing profits). Demand is largely driven by households who cannot afford rents in the private market. Current supply of non-market housing is not enough to keep up with demand. Given the sector's growth rate is less than half that of market housing, the share of non-market housing decreases each year.
In 2021, 47% of renter households in Canada reported experiencing one or more of the following challenges: housing cost over 30% of their income, housing that was not suitable for the size of their household, or housing in need of repairs.
Non-market housing represented less than 1% of new construction in 2023, compared to an average of 10-12% in the 1960s and 1970s. Nearly half of non-market housing was built before 1980, with 87% built prior to 1996.
The sector is highly fragmented, with about half of the total units managed by several thousand small providers, each of which typically owns fewer than 100 units. The largest 40 providers, typically provincial housing corporations and larger municipalities, own and manage the other half of the stock.
Much of the current non-market housing stock relies on ongoing support from all levels of government, through legacy operating agreements and rent subsidies. Current investments have preserved existing non-market housing and helped grown its stock, but not to the scale needed to help to restore housing affordability. Current federal investments in non-market housing total over $22.5 billion, including:

The Affordable Housing Fund, which is providing $14.6 billion over 11 years in long-term, low-cost repayable and forgivable loans to build new affordable housing and to repair and renew existing affordable and community housing;
The Co-operative Housing Development Program, which is providing $1.5 billion over seven years in low-cost repayable and forgivable loans to build a new generation of non-profit co-op housing;
The Federal Community Housing Initiative, a $618 million investment to help preserve 48,000 community housing units;
The Canada Community Housing Initiative ($4.3 billion in federal funding with an additional $4.3 billion cost-matched by provinces and territories), which supports the provinces and territories to preserve and expand community housing in their jurisdiction; and,
The Canada Rental Protection Fund, a $1.5 billion investment to help the community housing sector acquire rental apartment buildings and preserve affordability of rents over the long term.

New investments made through Build Canada Homes will support building and financing affordable housing and catalyzing the housing industry through a full suite of financial tools and investments in off-site manufacturing capacity.

7. Affordable Housing Fund

ERRATUM

In the Affordable Housing Fund note, a typographical error has been corrected in the Key points section:

"As of March 2025, almost $12 billion has been committed to support 221,000 units." should read "As of March 31, 2025, almost $12 billion has been committed to support the creation or repair of over 220,000 units."

This error has been corrected in the English HTML version of the note.

Issue / question

How is the Affordable Housing Fund, one of the Government of Canada's National Housing Strategy supply programs, helping to ensure housing is available for Canadians in need?

Suggested response

The Affordable Housing Fund (AHF) provides funding to build and repair affordable and community housing.
As of March 2025, committed funding will support the creation of more than 46,000 new units and the repair or renewal of nearly 175,000 existing units.
In November 2024, a new Rapid Housing Sub-Stream was launched under the AHF to help build shelters, transitional, and supportive housing with $50 million in dedicated funding for women's shelter spaces.

Key points

The program has a total of $14.6 billion in loans and contributions.
As of March 31, 2025, almost $12 billion has been committed to support the creation or repair of over 220,000 units.

Background

The 2023 Fall Economic Statement announced the renaming of the National Housing Co-Investment Fund to the Affordable Housing Fund (AHF), along with additional funding of $1 billion over three years, starting in 2025-26, to build more affordable housing. Budget 2024 provided a further $1 billion top-up to the Fund, bringing its total to $14.6 billion.
The AHF provides capital for new affordable housing and the renovation and repair of existing affordable and community housing. Funds are provided as low-interest and/or forgivable loans and contributions.
The Canada Mortgage and Housing Corporation announced enhancements to the AHF in November 2024 featuring a faster, more efficient approvals process and extended 20-year fixed-term low-cost loans for greater predictability.
Realizing a commitment made in Budget 2024, the AHF's New Construction Stream was divided into two dedicated sub-streams in November 2024: a Rapid Housing Sub-Stream and a Community Housing Sub-Stream.
The Rapid Housing Sub-Stream will provide $963 million over five years to build 2,400 new units/beds for those in greatest need. This sub-stream supports the construction of low cost-rental housing and single-room occupancy units – specifically, shelters, transitional, and supportive housing projects. These projects typically require operating subsidies to be viable and generate limited to no rental revenues.
The Community Housing Sub-Stream continues to support the construction of new affordable housing supply including mixed-income and mixed-use developments.
The 2024 Fall Economic Statement announced that $50 million over two years, starting in 2025–26, would be available for affordable housing providers to use for pre-development work and that $50 million would be accelerated under the Rapid Housing Sub-Stream in 2025–26 to build more women's shelter spaces. Both set asides were made using existing funding.
The AHF attracts partnerships with, and investments from, the provinces and territories, municipalities, non-profits and co-operatives, and the private sector. It aims to support more shelter spaces for survivors of family violence, transitional and supportive housing, new and renewed affordable and community housing, and ways of making homeownership more affordable. The AHF also supports Canada's climate change goals and improving the accessibility of housing for people with disabilities, by promoting universal design and making sure housing and common spaces are accessible to visitors with disabilities.
For new construction projects, proponents must:

Demonstrate financial viability and their financial and operational ability to carry out the project.
Ensure that rents for at least 30% of the units are less than 80% of the Median Market Rent and maintained for a minimum of 20 years.
Ensure that projects achieve Tier 2 of the 2020 National Energy Code of Canada for Buildings or Tier 3 of the 2020 National Building Code of Canada.
Ensure that 20% of units within the project meet or exceed accessibility standards.

For repairs, proponents must meet the affordability criteria. In November 2024, the minimum requirements for energy efficiency and accessibility were replaced with an approach where projects supporting these outcomes are prioritized.

8. Exhaustion of Loans in the Affordable Housing Fund

Issue / question

What is the Government of Canada doing to make sure shovel-ready projects aren't slowed or stopped because of inadequate funding in the Affordable Housing Fund?

Suggested response

The Affordable Housing Fund (AHF) provides low-cost loans and contributions in partnership with provinces, territories, and municipalities to build, repair and renew affordable and deeply affordable housing.
The program's loan funding is expected to be fully committed in June 2025. The government is reviewing next steps.
The need for affordable housing in this country is great, and that is why this government will further build on recent investments by creating Build Canada Homes to provide truly affordable homes for low- and middle-income Canadians at scale.

Key points

There has been a consistently high demand for AHF's low-cost financing model.
Applicants are encouraged to continue working with Canada Mortgage and Housing Corporation to explore funding options.

Background

From shelters, transitional and supportive housing, to mixed-use, mixed-income projects, the Affordable Housing Fund (AHF) has been helping communities preserve and grow their affordable housing stock.
First announced in Budget 2017, the AHF has grown into a $14.6 billion program with consistently high demand for its low-cost financing.
Funding for the program was originally set to sunset in 2027–28, in line with other programming in the National Housing Strategy. But contributions were extended into 2028–29 to help address barriers to building deeply affordable housing.
As of March 31, 2025, close to $12 billion has been committed through the AHF, supporting more than 46,000 new units and the repair or renewal of nearly 175,000 existing units. Applicants are encouraged to continue working with the Canada Mortgage and Housing Corporation to explore funding options.
Both repayable loans and contributions are important to the program's success. Repayable loans help drive scale while contributions help drive social outcomes like affordability, accessibility and energy efficiency.
Projects can take months—or years—to complete. For builders of affordable and deeply affordable housing, stability and predictability over the long-term are critical. Without these key ingredients, the financial risks these builders take on may dissuade them entirely from bringing forward the projects their communities need.

9. Rapid Housing Initiative

Issue / question

What is the aim of the Rapid Housing Initiative?

Suggested response

The federal Government is responding to the urgent and immediate housing needs of Canada's most vulnerable populations.
The $4 billion Rapid Housing Initiative provides funding to support the rapid construction of new housing and the acquisition of existing buildings for conversion into permanent affordable housing.
To date, $3.84 billion has been committed to support the creation of over 16,000 new affordable units.

Key point

The $4 billion Rapid Housing Initiative (RHI) was first announced in fall 2020, with funding over two years. It was topped up in both Budget 2021 and 2022, opening new rounds with funding until 2023-24. All funding for projects was committed by March 31, 2024.

Background

The Rapid Housing Initiative (RHI) was first announced in fall 2020, with funding over two years. It was topped up in both Budget 2021 and 2022, opening new rounds with funding until 2023-24. All RHI funding for projects was committed by March 31, 2024. Additional funding remains for monitoring to ensure projects remain affordable.
As of March 31, 2025, $3.84 billion has been committed to support the creation of 16,058 new affordable units. Of these:

6,229 units are for Indigenous peoples, 3,628 units are for people experiencing or at risk of homelessness, and 2,342 units are for seniors.
8,981 units are completed, 6,048 are currently under construction and 1,029 units are financially committed.

Budget 2024 provided $963 million over five years to a create a new Rapid Housing Sub-Stream under the Affordable Housing Fund, which, like the RHI, will support the construction of 2,400 new deeply affordable, transitional, supportive, and shelter units or beds.

Round 1

The RHI was initially a $1 billion program to help address urgent housing needs of vulnerable Canadians, especially in the context of COVID-19, through the rapid construction of affordable housing. This initial investment is divided in two streams:
- The Major Cities Stream provided $500 million in immediate support to 15 pre-determined municipalities that were identified in consultation with the Federation of Canadian Municipalities.
- Under the $500 million Projects Stream, provinces, territories, municipalities, Indigenous governing bodies and organizations, and non-profit organizations, could apply for funding by December 31, 2020. The RHI received significant interest, resulting in many quality applications that exceeded available funding.

Round 2

Budget 2021 committed $1.5 billion for the RHI in 2021-22 to address the urgent housing needs of vulnerable Canadians by providing them with adequate affordable housing in short order. At least 25% of this funding would go towards women-focused housing projects.
$500 million was allocated to the Cities Stream and flowed to 30 pre-determined municipalities.
$1 billion was allocated to unfunded eligible projects from Round 1.

Round 3

Budget 2022 provided $1.5 billion over two years, starting in 2022-23, to extend the RHI. This new funding is expected to create over 5,200 new affordable housing units, with 48% of units going towards women-focused housing projects.
$500 million under the Cities Stream was allocated to 41 pre-determined municipalities based on Census 2021 data of renters in housing need.
$1 billion under the Projects Stream was allocated via an applications-based process. Eligible applicants for this stream include provinces, territories, municipalities, Indigenous governing bodies and organizations, and non-profit organizations.

10. Canada Housing Benefit

Issue / question

Who benefits from the Canada Housing Benefit?

Suggested response

The Canada Housing Benefit provides direct assistance to help low-income Canadians afford their housing costs.
The Canada Housing Benefit includes a $2.4 billion federal investment, which is cost-matched by the provinces and territories for a total joint investment of $4.7 billion. Benefit payments are delivered by provinces and territories up to 2027-2028.
Through the Canada Housing Benefit, the Government of Canada is helping to support those most in need, including individuals and families at risk of homelessness.

Key point

As of March 31, 2025, over 243,940 households have been assisted through the Canada Housing Benefit and 815,190 renters were assisted under the one-time top-up to the Canada Housing Benefit.

Background

The Canada Housing Benefit is delivered through bilateral agreements with provinces and territories under the National Housing Strategy and invests $4.8 billion, cost-matched by both the federal and provincial and territorial governments, over a period of eight years up to 2027-2028.
The provincial/territorial Canada Housing Benefit aims to reduce housing need for some of Canada's most vulnerable population groups by providing financial assistance directly to households in need, monthly, to help them afford their housing costs.
As part of the bilateral agreements, Canada Mortgage and Housing Corporation and provinces must agree to Action Plans outlining how provinces will meet mutually-agreed to targets, with Action Plans being published by each province (with the exception of Quebec, which publishes results). Provinces and territories (PTs) manage funding intakes, select successful funding applications, and are responsible for submitting claims to the federal government for eligible cost-matched funding. They also have the freedom to increase their own contributions to supported programs over and above the Benefit's set targets.
Budget 2021 added an additional $315 million to the Canada Housing Benefit, specifically for women and children fleeing violence. This was broadened to cover all those experiencing gender-based violence and is also intended to be cost-matched by PTs for a total of $630 million (included in the $4.8 billion).
In addition, in 2023 the federal government delivered a one-time top-up to the Canada Housing Benefit. The top-up was a payment of $500 available to eligible renters in Canada who are struggling with the cost of housing.

This one-time federal benefit was in addition to the now $4.8 billion Canada Housing Benefit co--funded and delivered by the PTs.
The top-up to the Canada Housing Benefit was available to applicants with an adjusted net income below $35,000 for families, or below $20,000 for individuals, who are 15 years of age or older and pay at least 30% of their adjusted net income on rent.
Over 815,000 household applications were supported.

Through Budget 2024, the federal government announced an additional $99 million in contributions for the Canada Housing Benefit, cost-matched by PTs for a total of $198 million (included in the $4.8 billion). This top-up supports those households in housing need with direct affordability support, including newcomers to Canada and those seeking asylum. The top-up will flow through provincial and territorial rent support programs.

11. Housing, Affordability, and Climate

Issue / question

What is Housing, Infrastructure and Communities Canada's approach to housing, affordability, and climate?

Suggested response

Housing, affordability and climate are intersecting challenges. Housing, Infrastructure and Communities Canada (HICC) is committed to increasing housing supply and improving affordability, while reducing emissions and supporting climate resilient communities.
Investments through the Canada Community-Building Fund ($2.4 billion per year indexed at 2%) and predictable public transit funding (averaging $3 billion per year starting in 2026--27) will support the development of transit-oriented communities, helping to reduce congestion and emissions.
HICC is addressing the affordability of existing homes by investing in energy efficient and low-carbon retrofits through two key programs:

The Canada Greener Homes Loan which has provided over 109,000 interest-free loans to date.
The Canada Greener Affordable Housing program which offers low interest and forgivable loans to help affordable housing providers complete deep energy retrofits on multi-residential buildings.

Key points

The Canada Greener Homes Loan has provided more than 109,000 interest-free loans valued at $2.63 billion to date.
CMHC's Canada Greener Affordable Housing program provides $1.1 billion in low-interest repayable and forgivable loans.
Budget 2024 announced $800 million to launch a new Canada Greener Homes Affordability Program.

Background

Increasing the energy efficiency and climate resilience of housing will reduce costs over the life of a building and improve long-term affordability. The cost of electrifying a new single-family home is 1% higher than a natural gas home and overall will lower energy costs (except in Alberta, Saskatchewan and Ontario where natural gas is cheaper). There are also approaches to building multi-unit residential buildings with electric heating that are more cost effective than using natural gas.
Budget 2024 announced $800 million to launch a new Canada Greener Homes Affordability Program to support the direct installation of energy efficiency retrofits for lower income households. This new program within the Canada Greener Homes Initiative will be co-delivered with provincial and territorial partners and complement the Canada Mortgage and Housing Corporation's (CMHC) Canada Greener Homes Loan (CGHL) program.
The CMHC-operated CGHL was launched in 2022 and offers interest-free loans of up to $40,000 for 10 years to help Canadians make their homes energy efficient. To date, 109,000 interest-free loans valued at $2.63 billion have been committed. CMHC is now accessing the $600 million top-up announced in the 2024 Fall Economic Statement, ensuring that the CGHL continues through to Fall 2025. Almost half (45%) of the loans committed include the installation of a heat pump.
Investing in transit-oriented communities is an important part of Housing, Infrastructure and Communities Canada's approach to addressing housing and climate co-benefits. Transportation was the second largest source of greenhouse gas (GHG) emissions in Canada (22% in 2021). Investments made through the Canada Community-Building Fund and predictable public transit funding will be leveraged to advance housing outcomes.
CMHC's Canada Greener Affordable Housing program provides $1.1 billion in low-interest repayable and forgivable loans to help affordable housing providers complete deep energy retrofits on existing multi-unit buildings through both pre-retrofit funding for planning activities as well as capital costs of retrofits. The program targets deep retrofits, i.e., 70% reduction in energy and 80-100% reduction in GHG emissions over pre-retrofit performance.
Following two successful intake windows for pre-retrofit funding where demand far exceeded funding available, CMHC has committed to over 280 projects as part of this offering. Demand for retrofit funding has been steadily increasing as proponents complete the pre-retrofit work required to apply and to date CMHC has approved 18 projects for a total of 1,160 units and $135 million in funding.

12. Housing and Immigration

Issue / question

What is the Government of Canada doing to address the impact of high levels of immigration on housing?

Suggested response

Canada's ability to successfully welcome immigrants depends on having the capacity to do so. That is why this government is committed to build new housing for Canadians and newcomers alike.
By taking bold action to have homes built faster and more affordably, our government is committed to making it easier for Canadians and new immigrants to own or rent a home.
This government will better calibrate immigration with housing and other public services. By fostering a well-managed, responsive, and sustainable immigration system to ensure that those arriving to Canada have access to the housing they need.

Key points

Canada has experienced unprecedented population growth in recent years.
Statistics Canada indicates that temporary and permanent immigration accounted for almost 98% of this growth in 2023.
In March 2024, the Government of Canada announced a commitment to decrease the number of temporary residents from 6.5% of Canada's total population down to 5% by 2026.

Background

Canada has experienced unprecedented population growth in recent years, which has increased demand for housing. Statistics Canada indicates that immigration accounted for almost 98% of this growth in 2023. Further, according to estimates from the Parliamentary Budget Officer, in 2023, there were approximately 460,000 new households formed while only 242,000 housing units were completed.
In April 2024, the Government of Canada released Solving the Housing Crisis Canada's Housing Plan which sets out an ambitious suite of measures. These measures, in combination with Budget 2024 and subsequent announcements, will benefit newcomers and Canadians alike, and include:

$1.1 billion over three years for the Interim Housing Assistance Program which helps provincial and municipal governments prevent homelessness for asylum claimants on a cost-sharing basis;
$50 million over two years for Canada's Foreign Credential Recognition Program, with a focus on residential construction to help skilled trades newcomers get more homes built;
New funding for affordable housing programs, including the Affordable Housing Fund and a new $1.5 billion Canada Rental Protection Fund;
The removal of the Goods and Services Tax (GST) on the construction of new rental buildings, including the construction of student residences built by public universities, public colleges, and public-school authorities; and
Launching the Blueprints for the Renters' Bill of Rights and Home Buyers' Bill of Rights to help protect renters from unfair practices and help make the process of buying a home fairer, simpler, and more transparent.

These actions complement immigration measures taken to reduce the volume of temporary and permanent residents:

In March 2024, the Government of Canada announced a commitment to decrease the number of temporary residents from 6.5% of Canada's total population down to 5% by 2026. To reach the reduction in temporary residents, a series of immigration measures have been introduced (e.g., introduction of international student caps).
In the 2025-2027 Immigration Levels Plan, released on October 24, 2024, the Government of Canada announced a pause in Canada's population growth for two years, before returning to growth of 0.8% in 2027. The Plan includes for the first time targets for both temporary residents and permanent residents' admissions. It highlights the importance of ensuring a well-managed, responsive, and sustainable immigration system to help balance housing supply with housing demand.

13. Toronto and Vancouver Housing Markets

Issue / question

Toronto and Vancouver housing sales have started showing signs of weakness, which can lead to declines in homebuilding.

Suggested response

Canadians are facing an uncertain economy, which is contributing to home sales falling in some of those markets where we need homes the most, including Vancouver and Toronto.
We know Canada needs more housing supply. That's why this government is advancing a number of key measures like eliminating the GST for first-time home buyers on new homes up to $1 million; launching Build Canda Homes to increase the supply of affordable housing and leveraging new technologies to build faster and at a lower cost; and, working with provinces, territories and municipalities to reduce development charges.
We will continue to monitor the situation, and work closely with builders and other governments to ensure we are using all necessary tools to increase homebuilding in this country.

Background

Media commentary points to diminished recent housing sales, of all types of housing.
GTA REALTORS reported 6,244 home sales though the multiple listing service (MLS) system in May 2025 – down by 13.3% compared to May 2024.
Greater Vancouver REALTORS reported that residential sales in the region totalled 2,228 in May 2025, an 18.5% decrease from the 2,733 sales recorded in May 2024.
Declining home sales can lead to declining home starts.
In Toronto, 55% of pre-construction condominium units went unsold in the first quarter of 2025, marginally below the record high of 56% at the end of 2024. This level of unsold units presents a significant challenge for developers seeking funding for their projects. Lenders typically require a pre-sale threshold of 70% prior to releasing funds.
Anecdotal information points to a number of possible issues which may push down housing starts (most notably in condominium apartments), including significantly lower demand for pre-sales (due to heightened economic uncertainty (e.g., trade risks), continued elevated interest rates, reduced investor interest in condominiums in general, expected declines in immigration, limits on purchases by foreign buyers, and elevated construction costs.
Investor profitability in Toronto and Vancouver's condominium markets is also under pressure, as high interest rates raise carrying costs and flat prices limit equity gains, especially for new investors renting out units.
In the short term, softer market conditions may ease pressure on buyers and renters in Canada's priciest cities, but at the cost of slowing new construction.
By contrast, other markets are showing encouraging signs of homebuilding, including Calgary and Edmonton.
In consideration of the current Toronto and Vancouver housing markets, industry advocates have promoted the federal government's housing agenda by endorsing action on development charges and GST.

14. Government Position on Housing Prices

Issue / question

Does the Government of Canada believe that housing prices should go down, go up, or remain the same?

Suggested response

The Government of Canada is committed to making the housing market work better and solve Canada's housing crisis to ensure that every Canadian has access to housing they can afford.
This government is committed to making housing more affordable for all Canadians by building homes at a scale and speed not seen for decades. That is why this government is undertaking new measures to help double the rate of home building while creating a new housing industry that will allow us to build faster and at lower cost.
These measures include: eliminating Goods and Services Tax (GST) for first-time homebuyers on new homes up to $1 million; establishing Build Canada Homes, a new entity, that will increase the supply of affordable housing and help grow an innovative homebuilding sector; and working with provinces, territories, and municipalities to reduce development charges.
These efforts build on federal action to date aimed at reducing the cost of homebuilding, such as the removal of the GST on construction of new rental apartment buildings and increased funding to the Apartment Construction Loan Program and the Affordable Housing Fund.

Background

The government is committing to introducing measures to deliver affordable homes by creating Build Canada Homes (BCH) that will accelerate the development of new affordable housing, invest in the growth of the prefabricated and modular housing industry. BCH will also provide significant financing to affordable home builders.
Building on federal housing investments launched in 2017, through Canada's Housing Plan and related measures, the federal government has taken actions to address housing affordability for all Canadians, including by:
- Removing the Goods and Services Tax (GST) from new rental apartment construction projects, co-ops, and new student residences built by non-profit universities, and public colleges and school authorities;
- Reforming and enhancing the Apartment Construction Loan Program - a program that provides low-interest loans to builders and developers to boost the construction of rental housing, with 131,000 units to be committed by 2031-32;
- Launching the Housing Accelerator Fund – a program that incentivizes local governments to remove barriers that slow the construction of housing – that will unlock over 112,000 homes over the next three years;
- Advancing mortgage reforms to help more Canadians qualify for a mortgage, including expanding eligibility for 30 year mortgage amortizations to all first-time homebuyers and to all buyers of new builds;
- Launching a new Co-operative Housing Development Program to support new co-operative housing developments across the country;
- Launching a Call for Applications (closed May 29, 2025) to establish the Canada Rental Protection Fund. The Fund will help community housing providers acquire affordable rental units at risk of being sold to investors and repriced in order to preserve their affordability over the long term; and
- Increasing funding for programs that address homelessness, including encampments and unsheltered homelessness.
In addition, on May 27, 2025, the Government of Canada tabled a proposal in Parliament to eliminate the GST for first-time homebuyers on homes at or under $1 million. This will save first-time homebuyers up to $50,000 and spur housing construction across the country. The government will also lower the GST for first-time home buyers on new homes valued between $1 million and $1.5 million.

15. Interest Rates and Housing

Issue / question

How do interest rates impact housing demand, supply and affordability in Canada?

Suggested response

Interest rates exert a substantial influence on housing demand, primarily through their effect on mortgage costs. Higher rates reduce affordability and dampen buyer and investor interest, while lower rates generally stimulate demand.
While interest rates influence housing demand and investment, they do not directly contribute to increasing housing supply. Interest rates impact housing supply by affecting residential investment, as the sector relies heavily on debt financing. As borrowing costs rise, construction activity tends to slow.
Although reductions in interest rates can offer some relief, they do not fully address the broader affordability issues within the market. Structural challenges, such as zoning restrictions and delays in permitting, remain unaffected by changes in monetary policy and continue to constrain housing supply.

Key points

On June 3, the Bank of Canada held rates steady at 2.75%.
Purpose-built rental starts increased from 82,921 starts in 2022 to 95,852 starts in 2024 despite increasing interest rates.

Background

Empirical analysis by the Bank of Canada (BoC) found that housing investment (i.e., new construction, ownership transfer costs, and renovations) is most sensitive to interest rate changes, largely due to a reliance on borrowing money through loans or bonds to finance construction.
From 2020 to 2022 during the peak of the global pandemic, the BoC lowered its interest rate from 1.75% to 0.25% to support the economy. This period saw a historic boom in residential construction and peak material prices driven by exceptional pandemic-fuelled demand.
Between 2022 and 2023, as markets stabilized, and the BoC raised interest rates consecutively — from 0.25% to 5%. The sharp rise in borrowing costs made it more difficult for prospective homebuyers to qualify for mortgages, increased financing costs for developers, and cooled investor interest in new housing projects.
However, despite the interest rate hikes, investment increased in purpose-built rentals, which rose from 82,921 starts in 2022 to 95,852 starts in 2024.
On June 4, 2025, the Bank of Canada decision to hold rates steady noted housing activity was down, driven by a sharp contraction in resales. Previous rate decisions highlighted declining residential investment since the start of the trade dispute with the United States – despite rates remaining lower to what they were 12 months ago.

The policy rate was paused in April 2025 after seven consecutive cuts due to the BoC's uncertainty regarding the impact of United States tariffs.
In the near-term, global uncertainty is expected to have minimal impact on consumers' decision to buy homes and on investors' decision to build.
In the medium-to-longer term, lowering borrowing costs could accelerate new construction by boosting demand for homes (vs. rental) as ownership becomes more affordable and unlocking pent-up demand.

Despite lower borrowing costs, affordability challenges will continue to limit buyers' ability to own a home. The housing supply gap remains wide, despite narrowing because of reduced immigration targets for permanent and non-permanent residents in 2024. These lower targets are expected to lead to a marginal population decline by 2026, with slow growth after 2027.
Many aspects of homebuilding that are under municipal responsibility, such as zoning restrictions, development charges, permitting and delays in construction, are not directly impacted by interest rate changes. Monetary policy does not target housing prices directly and cannot target a particular group, sector or region. The ongoing economic uncertainty has weakened both consumer and business confidence. This translates into less home transactions and less construction investments.

16. Defining Housing Affordability

Issue / question

How does the Government of Canada define housing affordability?

Suggested response

‘Housing affordability' refers to the relationship between the cost of housing and household operations relative to total household income.
According to the Canada Mortgage and Housing Corporation, housing in Canada is considered affordable when shelter costs are less than 30% of a household's total before-tax income.
Shelter costs are defined as the average monthly housing expenses and operating costs of a household. These can include utilities such as electricity and heating; water and other municipal services; monthly mortgage, rent, or use and occupancy payments; property taxes; and condominium fees.

Key points

According to the 2022 Canadian Housing Survey, the share of households spending 30% or more of their income on shelter costs was 22.0%, nearly the same as it was in 2018 (21.5%).
Renters (33.0%) were more than twice as likely to spend 30% or more of their income on shelter costs than homeowners (16.1%).
Households living in social and affordable housing (25.4%) were less likely to spend 30% or more of their income on shelter costs compared with 2018 (29.4%).

Background

In 1986, the Canada Mortgage and Housing Corporation (CMHC), through consultations with the provinces and territories, adopted the 30% shelter-cost-to-income threshold to measure housing affordability for the purposes of assessing the need for social housing. The shelter-cost-to-income ratio refers to the proportion of average total household income which is spent on shelter costs. It is calculated by dividing the average monthly shelter costs by the average monthly total before-tax household income, and expressing the result as a percentage. This ratio is applicable to owner and tenant households with a total household income that is greater than zero in non-farm, off-reserve private dwellings.
‘Housing affordability' is different from ‘affordable housing'.

‘Housing affordability' is a general term that refers to the overall relationship between the cost of housing and household operations, relative to total household income. According to CMHC, in Canada, housing is considered affordable if it costs less than 30% of a household's before-tax income.
‘Affordable housing' typically refers to non-market, below-market, or subsidized housing provided by private, public, and non-profit sectors, and includes all forms of housing tenure such as rental, ownership, and co-operative ownership.

‘Acceptable housing' refers to housing that meets the three CMHC housing indicator thresholds:

Adequate Housing: Does not require any major repairs, as reported by residents.
Affordable Housing: Shelter costs are less than 30% of the total before tax household income.
Suitable Housing: Enough bedrooms for the size and composition of resident households, as per the National Occupancy Standard (NOS).

Related housing indicators

Core housing need is a term used to describe households whose housing is inadequate, unaffordable, or unsuitable, and who cannot afford better housing in their community. A household is considered to be in core housing need if it does not meet one of the three thresholds established by CMHC for housing adequacy, suitability, and affordability, and would have to spend 30% or more of its before-tax household income to access local housing that meets all three standards.
The NOS is not an enforced rule or regulation. It was developed in the mid-1980s by federal, provincial, and territorial governments to help support the design and evaluation of housing policies and programs. It provides a common reference point for “suitable” housing, which is the optimal number of bedrooms for the number and composition of people living in a given dwelling unit.

Census and Canadian housing survey findings

According to the 2021 Census, 20.9% of households reported spending 30% or more of their household income on shelter costs. This is down from 24.1% in 2016, and 25.2% in 2011.

17. Build Canada Homes

Issue / question

What is Build Canada Homes?

Suggested response

This government is committed to using every tool at its disposal to build homes at scale and speed.
That is why we are launching Build Canada Homes – to scale up construction of affordable homes in a way that drives innovation that will make construction faster and more sustainable.
Build Canada Homes will streamline development timelines, leverage public lands, and reduce financial barriers to build truly affordable homes for low and middle income Canadians, at scale.

Background

Canada's housing crisis continues to grow making it more difficult for Canadians to find housing that meets their needs. A lack of supply, increasing costs, and construction challenges (e.g., lack of skilled labour, low productivity, etc.) means more households struggle to afford housing, notably low- and middle-income families.
Recognizing the scale of the challenge, the Government of Canada has, over the past decade, committed significant resources to meet national housing objectives under the National Housing Strategy (launched in 2017) and more recently Canada's Housing Plan (announced in Budget 2024), which focus on building more homes, making it easier to rent a home, and helping Canadians who can't afford a home.
The proposed creation of a new Build Canada Homes entity is consistent with the tenets of the National Housing Strategy, Canada's Housing Plan and other related federal investments. It also proposes an emphasis on non-market housing as a federal priority, with the objective to shift toward more responsive funding models, prioritize investments that support long-term sustainability, build capacity, preserve and grow the sector.
Build Canada Homes will allow the Government of Canada to address gaps in current interventions and programming and advance its objectives in new ways, including:
1. Bringing together key functions related to getting public lands developed, including pre-development (e.g., site planning, seeking re-zoning and approvals from municipalities, servicing, etc.);
2. Acquiring additional lands (including from the private sector), conduct land assembly, and take different and more active roles in terms of ensuring the success of developments, such as entering P3-style partnerships with provision of equity, guarantees, etc.
3. Financing and supporting non-market housing to create a predictable source of financing for non-market housing projects, including in a manner that draws in and channels private capital. This would represent a shift away from targeted, time-limited programs reliant on continual funding top-ups.
4. Supporting the scale-up of innovative construction (e.g., off-site manufacturing of modular homes), providing and/or ensuring access to investments and financing, and ensuring sufficient and sustainable demand and certainty to allow these builders to scale operations.

18. Canada's Housing Plan

Issue / question

How is Canada's Housing Plan confronting the housing crisis?

Suggested response

In April 2024, the Government of Canada released Canada's Housing Plan, which includes new and enhanced measures to make housing more attainable and affordable by building more homes, making it easier to rent or own a home, and helping Canadians who can't afford a home.
Initiatives announced as part of the Plan include:

the removal of the Goods and Services Tax on the construction of new dedicated rental apartment buildings;
changes to mortgage eligibility requirements to help more Canadians qualify for a mortgage;
the identification of surplus federal properties across the country for housing development; and
the introduction of the Tax-Free First Home Savings Account for new first-time home buyers.

The Canada Rental Protection Fund was also launched, and increased funding to the Apartment Construction Loan Program and the Affordable Housing Fund, and provided $250 million in funding to address the urgent issues of encampments and unsheltered homelessness.

Background

The Government of Canada is committed to solving Canada's housing crisis and ensuring that every Canadian has access to housing they can afford. Building on federal housing investments launched in 2017, Canada's Housing Plan sets out a suite of measure to tackle the housing supply and affordability crisis. To this end, the Government of Canada has taken actions along three priority areas, including:
1. Building more homes:

Removing the Goods and Services Tax (GST) from new rental apartment construction projects, co-ops, and new student residences built by non-profit universities, and public colleges and school authorities;
Launching a new Public Lands for Homes Plan to unlock 250,000 homes on public lands, with 90 properties already identified on the Canada Public Land Bank;
Reforming and enhancing the Apartment Construction Loan Program - a program that provide low-interest loans to builders and developers to boost the construction of rental housing, with 131,000 units to be committed by 2031-32;
Launching the Housing Accelerator Fund – a program that incentivizes local government to remove barriers that slow the construction of housing - and new Canada Housing Infrastructure Fund, with over 220,000 units projected to be unlocked to date.

2. Making it easier to rent or own a home:

Advancing mortgage reforms to help more Canadians qualify for a mortgage, including expanding eligibility for 30-year mortgage amortizations to all first-time homebuyers and to all buyers of new builds; and
Launching the Blueprints for the Renters' Bill or Rights and Home Buyers' Bill of Rights to help protect renters from unfair practices and help make the process of buying a home fairer, more open and more transparent.

3. Helping Canadians who can't afford a home:
- Launching a new Co-operative Housing Development Program to support new co-operative housing developments across the country.
- Launching a Call for Applications (closed May 21, 2025) to establish the Canada Rental Protection Fund. The Fund will help community housing providers acquire affordable rental units at risk of being sold to investors and repriced in order to preserve their affordability over the long term; and
- Increasing funding for programs that address homelessness, including encampments and unsheltered homelessness.
In addition, in March 2025, the Government of Canada announced that it will eliminate the GST for first-time homebuyers on homes at or under $1 million. This will save first-time homebuyers up to $50,000 and spur housing construction across the country. The government will also lower the GST on homes between $1 million and $1.5 million.

19. National Housing Strategy

Issue / question

What are the key accomplishments in housing since the launch of the National Housing Strategy?

Suggested response

Since 2017, the federal government has provided more than $115 billion in funding through the National Housing Strategy to ensure more people living in Canada have access to safe, affordable and inclusive housing.
National Housing Strategy programs, like the Apartment Construction Loan Program, the Affordable Housing Fund, and the Co-op Housing Development Program, have committed over $65 billion to support the creation of over 166,000 new units and the repair of over 322,000 units.
To date, more than $4.4 billion in federal funding has been committed through bilateral agreements, for housing and homelessness programming that is delivered by the provinces and territories. As of September 30, 2024, this has supported the repair of over 146,000 units of social housing and the maintenance of over 314,000 units of social housing.

Background

The National Housing Strategy (NHS) is anchored in the National Housing Strategy Act which requires the Strategy to consider the key principles of a human rights-based approach to housing and prioritize the most vulnerable Canadians.
Canada's National Housing Strategy (NHS) sets ambitious targets to ensure that unprecedented investments and new programming deliver results. The federal government has committed to reducing chronic homelessness in Canada by 50%, and take as many as 580,000 households out of housing need. The NHS will result in up to 240,000 new housing units and 300,000 repaired or renewed housing units.
The NHS includes a range of complementary programs and initiatives that address diverse needs across the entire housing continuum and give more people in Canada a place to call home:

The Affordable Housing Fund (AHF) provides $14.6 billion in loans and contributions for new and repaired affordable and community housing. This includes Budget 2024's $1 billion top-up for the AHF to create a Rapid Housing Sub-Stream to help build shelters, supportive, and transitional housing.
The Federal Community Housing Initiative (FCHI) provides $618 million in long-term funding to protect, renew, and expand community housing. FCHI helps preserve 48,000 community housing units. Additionally, the 2024 Fall Economic Statement announced the Government's intention to provide $362.7 million to extend the FCHI to 2033-34.
Through the NHS, the federal government has bilateral agreements with all provinces and territories totaling over $15.7 billion in joint funding from 2018/19 to 2027/28. This includes:

the $8.6 billion Canada Community Housing Initiative, which provides predictable, long-term funding delivered by provinces and territories to protect, regenerate and expand social and community housing.
the $4.8 billion Canada Housing Benefit, to provide affordability support directly to households in need.
$300 million in Northern Funding to help address the unique needs and challenges faced in the North.

The Apartment Construction Loan Program provides $55 billion in loans to boost the construction of purpose-built rental. Budget 2024 provided an additional $15 billion top-up for the ACLP (included in the total).
The Federal Lands Initiative is a $318.9 million fund that supports the transfer of surplus federal lands and buildings to eligible proponents for use as affordable housing. Included in the total; Budget 2024 provided an additional $117 million in funding.
The Co-op Housing Development Program provides $1.5 billion in loans and contributions to support the development of new rental co-op housing.
The Housing Accelerator Fund is a $4.4 billion fund that provides direct funding to municipalities that take action reduce the restrictive bureaucracy that will help boost housing supply. This includes Budget 2024's $400 million top-up.
The Rapid Housing Initiative provided $4 billion in capital contributions to address urgent housing needs through the rapid construction of new housing and the acquisition of existing buildings for rapid rehabilitation or conversion.

To accomplish the NHS' goal of reducing chronic homelessness by 50%, the nine-year, $5 billion Reaching Home: Canada's Homelessness Strategy provides funding to urban, Indigenous, rural and remote communities to help them address their local homelessness needs. This can include funding shelters and transitional housing.
The NHS respects the Government of Canada's commitment to working on a nation-to-nation, Inuit-to-Crown, government-to-government basis with Indigenous peoples, which is why Indigenous Services Canada, with support from Canada Mortgage and Housing Corporation, engaged with First Nations, Métis Nation, and Inuit partners to develop distinctions-based housing strategies.

20. Indigenous and Northern Housing

Issue / question

How is the Government of Canada working with Indigenous communities to help address housing needs, particularly in urban, rural and northern areas?

Suggested response

This government is working with Indigenous communities to address the unique housing needs of Indigenous Peoples, including in urban, rural and northern areas.
This includes support for distinctions-based housing strategies and more than $2.2 billion in funding exclusively for Indigenous and northern housing.
In partnership with Indigenous communities and housing providers, this government will continue to directly support building housing for Indigenous peoples across the country.

Key facts

Federal programs that specifically address Indigenous and Northern housing include the Indigenous Shelter and Transitional Housing Initiative ($724.1 million, launched Nov. 2021) and the Urban, Rural and Northern Indigenous Housing Strategy ($4.3 billion, announced in Budget 2022).
To date, funding through additional existing federal programs has committed $5.21 billion to support the construction of over 18,000 new units and the repair/renewal of more than 10,000 units in Indigenous and Northern housing projects.

Background

The Government of Canada has established permanent bilateral mechanisms with First Nations, Inuit, and Métis leaders to identify joint priorities, engage on policy and monitor progress. In many cases, these, along with other tables, support overall joint work on Indigenous housing.
Federal distinctions-based housing funding is delivered by several federal organizations. Canada Mortgage and Housing Corporation (CMHC) and Indigenous Services Canada (ISC) provide funding to eligible First Nations communities for housing programs and services. Crown-Indigenous Relations and Northern Affairs Canada (CIRNAC) provides funding for the implementation of the Inuit Nunangat Housing Strategy and the Métis Nation Housing Sub-Accord, as well as to Modern Treaty and Self-governing First Nations.
The $724.1 million Indigenous Shelter and Transitional Housing Initiative was launched in November 2021 to support the construction and operations of additional shelters and transitional homes for Indigenous women, children, and 2SLGBTQQIA+ individuals fleeing gender-based violence, including in urban areas and in the North.

As of December 31, 2024, funding has been committed under this initiative for the construction of 37 new shelters and 34 new transitional homes.

To address Indigenous housing needs in urban, rural and northern areas, the Government of Canada is making investments in the Urban, Rural and Northern Indigenous Housing Strategy (U.R.N. Strategy). Budget 2023 committed $4 billion, over seven years, starting in 2024-25, to implement the U.R.N. Strategy. This built on an initial investment of $300 million in 2022 for engagement to develop the Urban, Rural and Northern Indigenous Housing Strategy with Indigenous partners, as well as funding to address urgent and unmet housing needs.
The Urban, Rural and Northern Indigenous Housing Strategy was announced in December 2023.

A majority of the U.R.N. Strategy funding is to be delivered via a National Indigenous Housing Centre. A Request for Proposals (RFP) was issued in early 2024 to identify a top-ranking proponent. Negotiations are ongoing through fall 2025.
Through ISC and CIRNAC, the remaining U.R.N. Strategy funding is being advanced directly to First Nations, Inuit and Métis partners and governments through new or amended agreements to support their members, citizens and beneficiaries living in urban, rural and northern areas.

21. Housing and Infrastructure in the Territories / North

Issue / question

How is the Government of Canada addressing the housing and infrastructure gap in the North?

Suggested response

This government will invest in northern infrastructure to improve housing stock, accelerate housing development, and meet the growing housing demand.
In collaboration with Arctic and northern Indigenous partners, this government will work to ensure community priorities are reflected.
A whole-of-government approach to build infrastructure in the North will be adopted to ensure that the unique challenges of northern communities are met to improve quality of life, enhance environmental sustainability, and seize economic development opportunities.

Key point

Since 2015-2016, HICC, has invested over $3.2 billion in infrastructure, housing, and homelessness projects across the Territories, with close to $1.57 billion for housing specifically, including $963.1 million through the National Housing Strategy.

Background

Northern Canada faces needs and gaps in respect of core foundational infrastructure, including relative to the rest of Canada.

According to the 2020 Canada Core Public Infrastructure data, the total replacement cost for assets in poor and very poor condition are estimated to be $3.09 billion in the Yukon, $227.7 million in the Northwest Territories, and $108 million in Nunavut.
In 2022, Inuit identified the need for $75.1 billion over 35 years for 115 projects in order to help close the Northern infrastructure gap.
In their “Closing the Infrastructure Gap by 2030” report, the Assembly of First Nations identified the need for $17.8 billion to address the infrastructure gap in the Northwest Territories and $10.6 billion to cover the needs of 18 First Nations in Yukon.
The North Slave Métis Alliance and the Northwest Territory Métis Nation have also cited the need to address critical infrastructure.

According to Canada Mortgage and Housing Corporation's 2023 Northern Housing Report, the proportion of Territorial households living in core housing need is above the national average of 7.7%:

9.9% of households in the Yukon;
11.4% of households in the Northwest Territories;
40.5% of the population in Nunavut.

Existing infrastructure is operating close to or beyond useful lifespan and is more vulnerable to climate change and Northern climate conditions. The lack of basic infrastructure as well as the impacts of climate (e.g., drought, melting permafrost), and a limited labour supply all contribute to increased costs to build, maintain and operate housing and infrastructure. These factors also hinder long-term planning and exacerbate the housing deficit and infrastructure gap.
Key issues impeding access to housing in the Territories include: aging facilities/public housing infrastructure, increased costs for operations and maintenance, an extremely tight rental housing market, lack of affordable housing, and public housing waitlists.
Since 2015-2016, Housing, Infrastructure and Communities Canada (HICC) has invested over $3.2 billion in infrastructure, housing, and homelessness projects across the Territories. This includes close to $1.57 billion for housing, including $963.1 million through the National Housing Strategy. Additional investments have also been provided to support dedicated First Nations, Inuit and Métis housing needs.
Direct delivery infrastructure programs can have benefit for Indigenous, rural, and northern communities, such as minimum carve outs of total funding envelopes and other flexibilities such as extended deadlines and continuous intakes.
Programs with direct delivery components include the Disaster Mitigation and Adaptation Fund, the Natural Infrastructure Fund, the Green and Inclusive Community Buildings program, the Rural Transit Solutions Fund, the Active Transportation Fund, the Zero Emission Transit Fund, the Canada Public Transit Fund, and the Canada Housing Infrastructure Fund.
Under programs with direct delivery components, HICC continuously works to improve and clarify the reporting requirements for applicants, including smaller communities and those with more limited administrative capacities.
The Canada Infrastructure Bank is a formal partner on five projects across the Territories, including $[redacted] million in investments to accelerate development work for two large projects in Nunavut (Kivalliq Hydro-Fibre Link and Grays Bay Road and Port project) and a $100 million investment in a project located in the Northwest Territories (Inuvialuit Energy Security Project).
Federally imposed territorial debt limits, strict fiscal policies and challenges in raising sufficient tax revenues limit territorial governments' access to capital for infrastructure investments.
Multiple federal departments contribute to addressing Northern infrastructure and housing, including Transport Canada (aviation, marine, and rail infrastructure); Innovation, Science and Economic Development Canada (broadband infrastructure); Department of National Defence (military infrastructure and “community assets program”); Crown-Indigenous Relations and Northern Affairs Canada (distinctions-based funding for housing and infrastructure [CIRNAC]). CIRNAC and Indigenous Services Canada are also important players in the Northern landscape which includes territorial governments and modern treaties, Comprehensive Land Claims, and self-determination tables.

22. Funding and Programs for Shelters for Survivors of Gender-based Violence

Issue / question

How is the federal government supporting the creation of shelter spaces for survivors of gender-based violence?

Suggested response

This government is committed to providing safe and secure shelter spaces for people fleeing gender-based violence.
The Affordable Housing Fund will also help build and maintain at least 4,000 shelter spaces for survivors of family violence by 2028.
Additionally, the Indigenous Shelter and Transitional Housing Initiative has committed more than $353 million toward the construction of 37 shelters and 36 transitional homes for those fleeing violence.

Key points

Through federal National Housing Strategy (NHS) programs, the Government has supported the creation, repair, and renewal of more than 17,350 shelter spaces.
As of March 2025, 33.2% of all NHS committed funding has gone towards meeting the housing needs of women and their children.

Background

The National Housing Strategy (NHS) prioritizes meeting the needs of vulnerable populations, including women and children fleeing domestic violence. Many NHS initiatives aim to improve access to stable shelter, including shelters and transitional housing, for vulnerable populations. As of March 31, 2025, 17,359 shelter spaces have been created or repaired through the NHS.
For example, the $14.6 billion Affordable Housing Fund (AHF) provides capital contributions and low-cost loans for new construction and repair and renewal of existing shelters, including via the new $1 billion Rapid Housing Sub-Stream. Through the AHF the Government of Canada plans to help build and maintain at least 4,000 shelter spaces for survivors of family violence by 2028.
The 2024 Fall Economic Statement also announced that $50 million would be accelerated under the AHF Rapid Housing Sub-Stream in 2025-26 to build more women's shelter spaces, using existing funding.
The NHS targets having at least 25% of funding go toward meeting the housing needs of women and their children. As of March 2025, 33.2% of all NHS committed funding has gone toward this objective.
In the 2020 Fall Economic Statement, the Government of Canada announced a comprehensive Violence Prevention Strategy to expand culturally relevant supports for Indigenous women, their children, and 2SLGBTQQIA+ people facing gender-based violence. This strategy allocated $420 million from 2020-2025 to support construction of new shelters and transitional (second stage) housing across Canada for First Nations, Inuit, and Métis. Indigenous Services Canada will invest $304.1 million from 2020-2025, and $96.6 million annually, to support operational costs and expand funding for culturally relevant violence prevention activities.
Through the Canada Housing Benefit (CHB), the federal government has partnered with provinces and territories (PTs) to co-fund and deliver monthly financial assistance directly to households in need to help them afford housing costs. Funding totals $4.8 billion, cost-matched by federal, provincial and territorial governments.

Budget 2021 announced $315 million to support women and children fleeing violence. This has since been broadened to cover all those experiencing gender-based violence. It is intended to be cost-matched by PTs for a total of $630 million, included in the $4.8 billion.
The CHB also included an additional one-time federal top-up payment of $500 to eligible renters struggling with the cost of housing. The payment was delivered in 2022-23 and is not included in the $4.8 billion.

These programs and initiatives are in addition to the nine-year, $5 billion Reaching Home: Canada's Homelessness Strategy. Reaching Home provides funding to urban, Indigenous, rural and remote communities to help them address their local homelessness needs, which can include funding shelters and transitional housing.

23. Canada Rental Protection Fund

Issue / question

How does the Canada Rental Protection Fund preserve the affordability of existing homes and support the acquisition of additional affordable rental units by community housing providers?

Suggested response

This government is taking action to protect and grow Canada's non-market rental housing supply, through the Canada Rental Protection Fund.
The Fund will provide $1.5 billion in contributions and loans, and will leverage impact, philanthropic and other private capital, to help non-profits, co-ops and other community housing providers acquire buildings and keep rents affordable over the long-term.
The Fund will help strengthen and grow Canada's community housing sector, enabling it to provide more affordable housing options for Canadians.
A Call for Applications was open between March and May 2025 to select one or more community housing sector-led managers of this new Fund. More details on the launch of the Fund will be announced later this year.

Background

Rental affordability in Canada is a significant issue. The growth in purpose-built rental housing has not kept up with high population growth, so that renting has become less affordable for both lower income and middle-income Canadians.
A strong and growing community housing sector can be an effective means to preserve and add affordability in the market because it is mission-driven rather than profit-maximizing. Rent tied to cost of operations and maintenance grows slower than rents of privately-owned rental units driven by profit motives. Acquiring existing rental homes at risk of falling out of affordability can be an important tool for safeguarding the affordability across the country.
Budget 2024 announced the Canada Rental Protection Fund (CRPF), which will provide $1 billion in loans and $470 million in contributions to create a new source of low-cost capital that will allow non-profit organizations, co-ops, and other community housing providers to acquire units and preserve rents over the long term.
Co-led and co-funded by the federal government and other partners, the Fund will mobilize investments and financing from the charitable sector and the private sector to protect and grow affordable housing in Canada. The Fund will also help grow and strengthen the community housing sector overall, enabling it to support more affordable housing options for Canadians.
Housing, Infrastructure and Communities Canada has been engaging with stakeholders to inform program design since spring 2024, and held a Call for Applications process from March 7 to May 29, 2025, to select one or more arm's length organizations that will support the CRPF. It builds on a number of existing programs and measures which help support the community housing sector, including:
The $1.5 billion Co-operative Housing Development Program (CHDP), which was launched on June 6, 2024. The first funding window closed on September 15, 2024. The CHDP will fund up to 100% of the costs for eligible new residential spaces or conversion of non-residential spaces.

The $15 billion Affordable Housing Fund, which supports the creation of affordable rental housing and the repair and renewal of existing housing. It is designed to attract partnerships and investments to develop projects that meet a broad spectrum of housing needs, from shelters to mixed-income and mixed-use rentals;
The $4 billion Rapid Housing Initiative, which is fast-tracking the construction of 15,500 new affordable homes for people experiencing homelessness or in severe housing need by 2026; and
The Federal Community Housing Initiative, a $600+ million initiative that provides funding to federally administered community housing providers to stabilize their operations, subsidize rents for tenants in need, and maintain the current federally administered community housing stock.

24. Short-term Rental Enforcement Fund

Issue / question

Short-term rental activity contributes to the housing supply gap as it reduces the number of available units in the housing market.

Suggested response

This government believes that a home serving strictly as a short-term rental (STR) investment property is a home that is taken off the long-term market for Canadians.
The Short-Term Rental Enforcement Fund helps municipalities enforce local short-term rental regulations to protect and increase the available supply in the long-term housing market. It does not require municipalities to completely prohibit short-term rentals.
Given the low rental vacancy rates in Toronto, Montréal, and Vancouver, as in many other cities, adding these units back to the rental market would support those currently seeking a home.

Key points

According to Statistics Canada, as of 2023, there were over 100,000 STRs in Canada that could potentially be used for long-term dwellings.
More than 20% of these STRs are in Toronto, Montréal and Vancouver.

Background

The 2023 Fall Economic Statement (FES) proposed $50 million to support municipal enforcement of restrictions on short term rentals (STRs) through the development of a Short-Term Rental Enforcement Fund (STREF).
This program is one of three initiatives announced in the 2023 FES to address non-compliant STRs (i.e., STRs that do not meet the requirements of the local regulatory regime), with the two other components focusing on:
1. making STRs less profitable by removing tax deductions for non-compliant STR operators; and
2. collecting data on STR activity to inform future housing policy.
As the impact of STR activity is primarily local, municipalities have led the way in regulating STRs, relying on tools that enable them to regulate and enforce the scale (i.e. total number of listings), concentration (percentage of STRs relative to the housing stock), and integration of STRs in communities (noise and nuisance restrictions, parking requirements, etc).
The program aims to crack down on non-compliant short-term rentals by enabling communities with strict regulatory regimes geared to preserving long-term rental housing to enhance the enforcement of their short-term rental restrictions. The program does not require municipalities to completely prohibit short-term rentals.
The STREF funding portal was open between December 16, 2024, to January 24, 2025. Applicants were notified of the result of their application in early March 2025 and funding agreements were signed at the end of March 2025.
Funding was allocated through this single open call for proposals to eligible municipalities and Indigenous communities with the most pressing housing needs and most ambitious enforcement and compliance plans.
The STREF is a novel approach and complements other federal efforts to addressing Canada's housing shortage by protecting and increasing the supply in the long-term housing market, thus making them available for Canadians to live in instead of for the commercial activity of profit-seeking individuals and companies.

25. Rental Protections and Tenant Rights

Issue / question

What actions is the Government of Canada taking to strengthen protections for Canadians who rent their homes?

Suggested response

The Government of Canada is taking a leadership role to advance and strengthen protections for the many Canadians who rent their homes, given the need for more long-term rentals and to tackle challenging practices such as bad faith evictions, unaffordable rent increases and renovictions.
That is why the Government of Canada is increasing the supply of housing available to rent through investments such as the $55 billion Apartment Loan Construction Program, and the $600 million Federal Community Housing Initiative.
In addition, the Government of Canada is working collaboratively with provinces, territories and everyone involved in renting to improve systems and strengthen protections for renters, by advancing the Blueprint for a Renters' Bill of Rights and through initiatives such as the Tenant Protection Fund.

Background

Protections for Canadians who rent their homes is a significant issue, as rental housing supply has not kept up with demand, leaving many renters unable to secure affordable housing or living in overcrowded, in disrepair or unaffordable units.
About one-third of Canadians rent their homes, and renter households have grown by over 20% in the past decade. Whether for flexibility or as an alternative to homeownership, more Canadians are turning to rental housing – but continue to face significant challenges. High costs, low vacancy rates, and limited availability make it difficult to find affordable, safe, and secure housing. These pressures also limit renters' ability to form new households or relocate for work opportunities. At the same time, the supply of purpose-built rental housing has not kept pace with population growth, driving affordability concerns for both lower and middle-income Canadians.
With rising rental market rates – in some cases up by 30% in the last five years– the community housing sector is facing increasing pressure, is subject to the same cost increases, and is moreover losing aging housing stock. Acquiring existing rental homes at risk of falling out of affordability is an important tool for safeguarding affordable housing across the country.
To address the growing rental housing shortage and improve affordability, the federal government has introduced several targeted measures to boost the supply of rental housing, including:
- The Affordable Housing Fund (AHF) offers low-cost repayable and forgivable loans to build new affordable housing and repair/renew existing affordable and community housing;
- The Apartment Construction Loan Program (ACLP), now totaling over $55 billion (including a $15 billion top-up), offers low-cost financing to developers building rental housing for middle-income Canadians;
- The Federal Community Housing Initiative (FCHI) a $618.2 million fund that supports federally administered community housing projects reaching the end of their operating agreements from earlier social and affordable housing programs;
- The Housing Accelerator Fund (HAF) assists municipalities fast-track housing development through zoning reform and improved planning processes; and
- Announced in Budget 2024, the Canada Rental Protection Fund (CRPF) is set to provide $1 billion in loans and $470 million in grants to non-profits to acquire and maintain affordable rental housing.
The federal government is advancing the Blueprint for a Renters' Bill of Rights as a condition of bilateral agreements under the Canada Housing Infrastructure Fund (CHIF), calling on provinces, territories, and housing partners to support fair and transparent renting – while also investing in tenant protections through the $15 million Tenant Protection Fund, led by Justice Canada and proposing changes to the Canadian Mortgage Chater to help renters build credit through on-time rent reporting.

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Date modified:: 2025-10-09

Housing

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2. Market Housing Supply Gap

Issue / question

Suggested response

Key points

Background

3. Apartment Construction Loan Program

Issue / question

Suggested response

Background

4. Housing Accelerator Fund

Issue / question

Suggested response

Key points

Background

5. Modular Housing / Construction

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Background

Build Canada Homes

The Canadian modular housing industry

Existing Financing Initiatives Supporting Modular and Prefabricated Housing

6. Affordable and Non-Market Housing

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Key points

Background

7. Affordable Housing Fund

ERRATUM

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8. Exhaustion of Loans in the Affordable Housing Fund

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9. Rapid Housing Initiative

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Round 1

Round 2

Round 3

10. Canada Housing Benefit

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11. Housing, Affordability, and Climate

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12. Housing and Immigration

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13. Toronto and Vancouver Housing Markets

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Background

14. Government Position on Housing Prices

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Background

15. Interest Rates and Housing

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Background

16. Defining Housing Affordability

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Key points