Language selection

Government of Canada / Gouvernement du Canada

Search

Housing, Homelessness and Infrastructure

  1. Budget 2025
  2. Build Canada Homes
  3. Housing for Young Canadians
  4. Housing and Immigration
  5. Indigenous and Northern Housing
  6. Federal Lands Initiative
  7. Development Charges
  8. Market Housing Supply
  9. Affordable and Non-Market Housing
  10. Federal Homelessness Programming
  11. Buy Canadian
  12. Canada Housing Infrastructure Fund

Budget 2025

Issue / question

An overview of the department’s initiatives as proposed in Budget 2025.

Suggested response

  • Budget 2025 announced the government’s plan to Build Canada Strong by investing in the major infrastructure, homes, and industries that grow Canada’s economy. Some signature investments in the housing and infrastructure portfolio are:
    • the new Build Communities Strong Fund, including $51 billion over 10 years and $3 billion per year ongoing to support public infrastructure projects of local and regional significance;
    • the increased capitalization of the Canada Infrastructure Bank by $10 billion to enable investments in nation-building projects that have been referred to the Major Projects Office; and
    • launching Build Canada Homes with an initial investment of $13 billion over five years to deliver housing at scale by deploying modern construction methods and supercharging home building across the country.

Background

Build Communities Strong Fund

  • Budget 2025 provides $51.0 billion over 10 years, starting in 2026-27 and $3 billion per year ongoing for a new Build Communities Strong Fund. Of this, there is:
    • $17.2 billion over 10 years for a Provincial Territorial Stream, of which $5 billion over three years is dedicated for a Health Infrastructure Fund.
    • $6.0 billion over 10 years for a Direct Delivery Stream to support regionally significant projects, large building retrofits, climate adaptation, and community infrastructure; and
    • $27.8 billion over 10 years, with $3 billion statutory ongoing for a rebranded Canada Community Building Fund known as the Community Stream.
  • The Direct Delivery and Provincial and Territorial streams should adhere to Buy Canadian requirements and prioritize projects that use Canadian materials. For both streams, project selection should also consider factors related to the use of unionized labour and Community Employment Benefits agreements.

Build Canada Homes

  • As previously announced and confirmed in Budget 2025, the government has launched Build Canada Homes (BCH) with an initial $13 billion over five years.
    • Budget 2025 proposes to introduce legislation establishing a statutory appropriation of up to $11.5 billion to defray costs related to BCH, and a statutory appropriation of up to $1.5 billion to capitalise Canada Lands Company to support construction on properties held by the corporation.

Other measures

  • Increase the capitalization threshold of the Canada Infrastructure Bank (CIB) from $35 billion to $45 billion and enable the CIB to make investments in any nation-building projects that have been referred to the Major Projects Office.
  • Increase the Canada Mortgage Bond annual issuance limit from $60 billion to $80 billion to unlock access to cost-effective mortgage funding for lenders. The increase would apply exclusively to multi-unit housing.
  • Amend the National Housing Act and the Protection of Residential Mortgage Act or Hypothecary Insurance Act to increase Canada Mortgage and Housing Corporation's guarantees in force limit to $1 trillion and decouple this limit from the corporation's insurance in force limit and to increase the protected limit for mortgage or hypothecary loans to $500 billion.
  • Provide $2.8 billion for urban, rural, and northern Indigenous housing, such that, on balance, over $3 billion is available for First Nations, Inuit, and Métis to advance their housing priorities.

ERRATA

In the Build Canada Homes note, typographical errors have been corrected as follows:

  • Three occurrences of "Budget Implementation Act" should read "2025 Budget Implementation Act."

These errors have been corrected in the English HTML version of the note.

Build Canada Homes

Issue / question

What is Build Canada Homes?

Suggested response

  • The Government of Canada is stepping up with a bold approach to increase Canada’s housing supply and has launched Build Canada Homes — a new federal agency that builds affordable housing at scale.
  • The measures proposed in the 2025 Budget Implementation Act will provide the legislative authority to operationalize Build Canada Homes and ensure it has the resources needed to deliver results.
  • With an initial capital investment of $13 billion, Build Canada Homes brings together a range of partners to scale up the supply of affordable housing by providing financial support, leveraging other sources of public and private equity, activating public lands, and streamlining approvals to get housing built faster.
  • Build Canada Homes will harness public-private collaboration and deploy modern methods of construction to catalyze the creation of a more productive Canadian housing industry.
  • Since its launch in September 2025, Build Canada Homes has already delivered measurable results by signing landmark agreements with provinces and municipalities, advancing six federal land projects toward construction, and committing to thousands of affordable homes, with more to come.

Background

  • Build Canada Homes is the new federal agency with a mandate to scale up the supply of affordable housing across Canada. It has three primary functions:
    • build affordable housing;
    • finance affordable homebuilding; and
    • catalyze a more productive housing industry.
  • What makes Build Canada Homes different is how it works:
    • Combining flexible financing, access to land, and development expertise under one roof to make it simpler and faster to get big projects off the ground;
    • Unlocking multi-year pipelines of projects through the portfolio approach;
    • Leveraging modern methods of construction to reduce build times and costs (e.g., factory-built housing); and
    • Building on public lands to deliver more affordable homes faster.
  • On November 23, 2025, Build Canada Homes released its Investment Policy Framework which sets out how Build Canada Homes will deploy public capital strategically, attract private and philanthropic investment, and support innovative building methods to deliver more homes, faster.
  • As of November 27, 2025, Build Canada Homes is accepting proposals on an ongoing basis to partner on projects that increase the supply for affordable housing in Canada.
  • Build Canada Homes works closely with all levels of government to stack funding, financing and other financial incentives across governments to unlock new housing supply. The financial incentives include an exemption of fees and charges, including a waiver of Development Charges, which helps to reduce the cost of building new homes, particularly in high-cost areas.
  • Among its already-announced investments, Build Canada Homes has committed to:
    • Partner with the Nunavut Housing Corporation and Nunavut Tunngavik Inc. to build over 700 public, affordable and supportive housing units;
    • Deploy $1 billion to build transitional and supportive housing for people who are homeless or at risk of homelessness;
    • Launch the $1.5 billion Canada Rental Protection Fund to acquire at-risk rental apartment buildings;
    • Build up to 4,000 Direct Build units on federal lands in Ottawa, Winnipeg, Edmonton, Longueuil, Dartmouth and Toronto; and
    • Partner with the City of Ottawa to fast track the delivery of up to 3,000 new homes, and Nova Scotia to unlock 1,430 homes across the province.

Budget 2025 & 2025 Budget Implementation Act

  • Budget 2025 proposes an initial investment of $13 billion over five years for Build Canada Homes, starting in 2025-26.
    • This measure in the 2025 Budget Implementation Act will establish a statutory appropriation of up to $11.5 billion on a cash basis to fund the operations and activities of Build Canada Homes.
    • It will also provide a capital contribution of up to $1.515 billion to Canada Lands Company Limited (CLCL) to support housing construction on CLCL properties.
    • These funds will be paid out of the Consolidated Revenue Fund.
  • The $1.515 billion to CLCL will support Build Canada Homes’ objectives as it begins to develop sites under CLCL’s portfolio, deploying a Direct Build approach, overseeing and leading construction projects focused on affordable mixed-income communities. This first tranche of sites will be in Dartmouth, Longueuil, Ottawa, Toronto, Winnipeg, and Edmonton.

Housing for Young Canadians

Issue / question

How is the Government of Canada supporting housing for young Canadians?

Suggested response

  • The Government of Canada recognizes the impact of the housing crisis on young Canadians and is taking action to support their access to affordable homes.
  • This includes launching Build Canada Homes to support the development of affordable housing at scale as well as moving forward with measures such as the elimination of the Goods and Services Tax (GST) for first-time home buyers on new homes up to $1 million and lowering the GST for first-time home buyers on homes between $1 million and $1.5 million.
  • These efforts complement existing National Housing Strategy (NHS) initiatives, which place a significant emphasis on addressing the housing needs of populations with unique needs, including youth.
  • As of September 30, 2025, NHS programs have supported the construction of over 1,000 new housing units targeted specifically to young adults.

Background

  • The Government of Canada’s National Housing Strategy (NHS) places significant emphasis on addressing the housing needs of populations with unique needs, including young adults. As of September 30, 2025, NHS programs have supported the construction of over 1,000 new housing units targeted specifically to young adults. Initiatives under the NHS that benefit young Canadians include:
    • The $55 billion Apartment Construction Loan Program provides low-cost financing to support the development of rental housing, including a stream to enable development of on- and off-campus student housing.
    • The $1.5 billion Co-op Housing Development Program provides forgivable loans along with low-interest repayable loans to build rental co-operative housing. This program supports a new generation of non-profit co-operative housing.
  • In addition, the Government of Canada has removed the Goods and Services Tax on development of new purpose-built rental, including student residences to accelerate the construction of affordable housing near campuses and provide more housing options for students.
  • The Government has also taken action to make housing costs more affordable for Canadians, including young Canadians. These include:
    • Implementing the First Home Savings Account, a registered account which helps Canadians save up to $40,000 to purchase a qualifying home with tax-deductible contributions and tax-free withdrawals.
    • Changes to mortgage insurance rules that increase the price cap for insured mortgages to $1.5 million, to help Canadians qualify for a mortgage with a downpayment below 20%, and to expand the availability of 30-year mortgage amortizations to all first-time home buyers and to all buyers of new builds.
    • Launching the Blueprint for a Renters’ Bill of Rights, which calls on provinces, territories, and housing partners to support fair and transparent renting practices.
  • As part of efforts to double housing starts, the federal government launched Build Canada Homes (BCH), Canada’s new federal agency that will build and finance affordable housing at scale, while catalyzing a more productive homebuilding industry. By combining access to federal lands, development expertise and flexible financing under one roof, BCH will make it simpler and faster to create new housing supply for all Canadians, including youth.

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

  • The Government of Canada is committed to making housing more affordable, returning overall immigration rates to sustainable levels, and attracting the best talent in the world to help build our economy.
  • By taking bold action to build more homes faster, the federal government is making it easier for Canadians and new immigrants to own or rent a home.
  • The Government of Canada will continue to calibrate immigration levels with housing supply and demand for other public services. We are committed to fostering a well-managed, responsive, and sustainable immigration system.

Background

  • Canada has experienced unprecedented population growth in recent years, which has increased demand for housing. Statistics Canada indicates that immigration accounted for more than 97% of this growth in 2024. Further, according to estimates from the Parliamentary Budget Officer, in 2024, there were approximately 482,000 new households formed while only 276,000 housing units were completed.
  • In recent years, the Government of Canada has put forward several housing measures that benefit newcomers and Canadians alike, which include:
    • New supports for affordable housing, including the launch of Build Canada Homes with a $13 billion initial capitalization, including a new $1.5 billion Canada Rental Protection Fund;
    • $50 million in 2024-25 and 2025-26 for Canada’s Foreign Credential Recognition Program and $97 million over five years starting in 2026-27 for a Foreign Credential Recognition Action Fund, with a focus on construction to help skilled trades newcomers get more homes built;
    • 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;
    • 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; and
    • $1.7 billion since 2017 through the Immigration, Refugees and Citizenship Canada’s Interim Housing Assistance Program, which helps provincial and municipal governments implement sustainable and cost-effective solutions to provide shelter for asylum claimants on a cost-sharing basis.
  • These actions complement immigration measures taken to support a return to sustainable immigration levels and help ease pressures on housing:
    • In March 2024, the Government of Canada announced commitments to reduce the temporary resident population to less than 5% of the total population and to reduce annual permanent resident admissions to less than 1% of the total population by the end of 2027.
    • To reach these commitments, the 2026-2028 Immigration Levels Plan, released alongside Budget 2025, announced a reduction in permanent resident targets from 395,000 in 2025 to 380,000 in 2026. This decrease was coupled with a reduction to targeted temporary resident admissions from over 673,000 in 2025 to 385,000 in 2026.
  • In its mandate letter priorities from May 21, 2025, the government committed to both make housing more affordable and returning overall immigration rates to sustainable levels – while attracting the best talent in the world to help build our economy.

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

  • The Government of Canada is working with Indigenous communities to address the unique housing needs of Indigenous peoples, both in community and in urban, rural and northern areas.
  • The Minister of Indigenous Services is leading the development of a cross-government Indigenous Housing Strategy, following engagement with First Nations, Inuit and Métis partners.
  • The Government of Canada is providing support for distinctions-based housing strategies and more than $2.2 billion in funding exclusively for Indigenous and northern housing under the National Housing Strategy.

Background

  • The Government of Canada supports Indigenous housing through funding provided by Indigenous Services Canada (ISC), Crown-Indigenous Relations and Northern Affairs Canada (CIRNAC), and the Housing, Infrastructure and Communities portfolio, including Canada Mortgage and Housing Corporation (CMHC) and Build Canada Homes (BCH).
    • CMHC and ISC provide funding to eligible First Nations communities for housing programs and services.
    • 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.
    • Indigenous communities have also benefitted from National Housing Strategy programs, such as the Affordable Housing Fund, innovation programs, and the Rapid Housing Initiative.
    • The $724.1 million Indigenous Shelter and Transitional Housing Initiative supports the construction and operations of additional 38 shelters and 42 transitional homes for Indigenous women, children, and 2SLGBTQQIA+ individuals fleeing gender-based violence, including in urban areas and in the North.
  • Bilateral governance mechanisms are in place to work with First Nations, Inuit, and Métis leaders to identify joint priorities, engage on policy and monitor progress, including with respect to housing and homelessness priorities. These forums provide opportunities to advance self-determination, exchange information, identify gaps, and develop solutions.
  • Indigenous partners, as well as the Office of the Auditor General’s 2024 Report 2, Housing in First Nations Communities regarding on reserve housing, have underscored that the current application-based programming approach is:
    1. difficult to navigate;
    2. has not met the needs of communities with the greatest housing needs; and
    3. lacks a substantive, long term and transformational plan to address housing and infrastructure gaps in Indigenous communities.
  • In Budget 2025, it was announced that the Minister of Indigenous Services will coordinate a cross-government Indigenous Housing Strategy, following engagement with Indigenous partners. Together with renewal of the National Housing Strategy, the Indigenous Housing Strategy is anticipated to chart next steps for the transformation of federal support for Indigenous housing.
  • In the meantime, 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). Distinctions-based funding is being advanced directly to First Nations, Inuit and Métis partners to support their members, beneficiaries and citizens living in urban, rural and northern areas. Remaining funding of $2.8 billion was reconfirmed in Budget 2025 and next steps will be shared in due course.
  • As Canada’s new agency for affordable homebuilding, BCH welcomes affordable housing proposals from a variety of organizations, including Indigenous governments and organizations. An early project to incorporate Indigenous housing leadership is the January 2026 tripartite agreement between the Government of Canada, the Government of Nunavut, and Nunavut Tunngavik Incorporated to address Territorial and Inuit housing priorities and to accelerate the supply of non-market, public, affordable, and supportive housing, delivering up to 750 much needed homes.

Federal Lands Initiative

Issue / question

How is the Government of Canada’s Federal Lands Initiative leveraging federally owned land and properties to increase the supply of affordable, energy efficient and accessible housing?

Suggested response

  • The Government of Canada is investing over $318 million in the Federal Lands Initiative to help turn unused government land and buildings into affordable housing.
  • These federal properties can be sold to affordable housing providers at a discounted rate as low as $1, depending on the level of social benefits being delivered. Project proposals are evaluated based on accessibility, affordability, environmental efficiency, and community need.
  • As of September 30, 2025, over $142 million in funding has been committed under the Federal Lands Initiative to support the creation of 4,899 new and 208 repaired housing units.

Background

  • The Federal Lands Initiative (FLI) is a $318.9 million fund that supports the transfer of surplus federal lands and buildings to eligible proponents at discounted to no cost to be developed or renovated for use as affordable housing. The discount on the property will depend on the level of social outcomes achieved by the winning proposal.
  • The FLI was launched in 2018 with an initial $200 million over 10 years, and a target of creating 4,000 units by making suitable properties available to selected proponents. Budget 2024 topped up the FLI with $112.6 million over five years with an additional $4.3 million in future years, with the investment expected to unlock a minimum of an additional 1,500 units, bringing the total to 5,500 new units.
  • The FLI facilitates subsidies for the transfer of federal lands to housing providers to encourage the development of sustainable, accessible, mixed-income, mixed-use developments, and communities. Surplus federal properties across Canada are made available to partners that repurpose them to provide housing at less-than-market rates. The partners receive federal properties at a value somewhere between market value and $1. The difference between market value and transfer value represents the government’s contribution towards the provision of affordable housing.
  • Each housing project must meet the following National Housing Strategy requirements:
    • Affordability: 30% of units must have rents at less than 80% of local median market rents;
    • Energy efficiency: a minimum 25% reduction in energy consumption and greenhouse gas emissions compared to either national building codes or past performance; and
    • Accessibility: 20% of units must meet accessibility standards.
  • In addition, the Government of Canada created the Canada Public Land Bank, where the government publishes an inventory of federal properties that have been identified as suitable for housing development. There are currently 88 properties listed on the website that can support the construction of thousands of new homes; with work underway to identify additional federal properties.
  • The recent launch of Build Canada Homes will build on the success of affordable housing programs like the FLI to build and finance affordable housing, including on public lands. Build Canada Homes will bring all aspects of housing under one roof to make it simpler and faster to get projects off the ground. This includes streamlining construction on public lands by having access to the government’s land portfolio, including federal properties under the Canada Public Land Bank that are suitable for housing construction.

Development Charges

Issue / question

What is the Government of Canada doing about development charges?

Suggested response

  • The Government of Canada is improving the housing market by reducing red tape around housing construction. It is working with other levels of government to mitigate the burden of development charges on homebuilders, while ensuring municipalities can build the infrastructure needed to support growth.
  • Budget 2025 announced measures to reduce the impact of development charges through the Provincial and Territorial Stream of the new Build Communities Strong Fund, which will provide $17.2 billion in federal infrastructure funding over 10 years.
  • Provinces and territories will be able to direct funding toward the type of housing-enabling infrastructure that is often paid for using development charges—like roads, or water and wastewater infrastructure. This will allow for substantial reductions in these charges and avoid the introduction of other similar taxes.
  • Federal action on development charges is one of the ways the Government of Canada is increasing housing supply and affordability. Other such measures include Build Canada Homes and the elimination of the GST for some first-time homebuyers.

Background

  • Development charges are fees levied by municipalities on new development to pay for new and expanded infrastructure needed to support growing communities.
  • The use of development charges varies significantly across the country, with municipalities in Ontario and British Columbia relying most heavily on this revenue tool. Most provinces and territories (PTs) have legislation that allow municipalities to collect development charges, but not all municipalities do so.
  • Provincial and territorial legislation also determines the specific services for which municipalities can collect development charges, which can include drinking water, wastewater, stormwater, solid waste/waste management, transportation, parkland, transit, recreation and community, and emergency services. Some jurisdictions include many more categories of services in their development charge frameworks than others, and, within PTs, municipalities will use development charges for different needs.
  • Building infrastructure is essential to provide the services needed for new housing to be built. However, development charges have increased significantly in parts of the country in recent years. According to the 2024 Canadian Home Builders’ Association Municipal Benchmarking Study, development charges and related taxes and fees have increased by an average of $27,500 for a unit in a low-rise development and by an average $3,000 per unit in a high-rise development since the 2022 Study.
  • Budget 2025 announced the Government of Canada’s intent to launch the $51 billion Build Communities Strong Fund (BCSF) over 10 years, starting in 2026-27. The BCSF will include a $17.2 billion over 10 years Provincial and Territorial Stream for funding provincial and territorial infrastructure projects and priorities. To access funding under this stream, provincial and territorial governments will be asked to cost-match federal dollars and show a commitment to reducing development charges and not levy other taxes that hinder housing supply. Of the total $17.2 billion, $5 billion over three years will be dedicated to health infrastructure funding and will be exempt from the requirement to reduce development charges.
  • Beyond taking action to reduce the burden of development charges for housing developers, the Government of Canada is supporting growth-enabling infrastructure through investment in the Canada Housing Infrastructure Fund (CHIF), which provides federal funding to PTs and municipalities for drinking water, wastewater, stormwater, and solid waste infrastructure to enable housing development. The Canada Community-Building Fund (CCBF) and the Canada Public Transit Fund also provide funding for infrastructure needed to support growing communities.
  • Budget 2025 also announced that the CCBF will be rebranded as the Community Stream under the BCSF and that the Fund will draw from repurposed resources from the CHIF.

Market Housing Supply

Issue / question

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

Suggested response

  • The Government of Canada is using all the tools at its disposal to close the housing supply gap, such as establishing Build Canada Homes to build affordable housing, and by eliminating the Goods and Services Tax on rental construction and for first-time homebuyers.
  • This builds on existing efforts to support new purpose-built rental through Canada Mortgage and Housing Corporation insurance, to lend directly to new housing developments through the Apartment Construction Loan Program, to encourage modern construction methods and programs that incentivize communities to cut red tape, to invest in housing-enabling infrastructure, and to streamline homebuilding.

Background

  • Canada is facing a housing supply gap, with the growth in demand for housing exceeding new construction. This has resulted in housing prices and rents growing faster than Canadians’ income.
  • One of the drivers of the housing shortage 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.
    • In June 2025, Canada Mortgage and Housing Corporation (CMHC) released a Housing Supply Gap report estimating that housing starts would need to increase from approximately 250,000 to between 430,000 – 480,000 annually over the next decade to restore affordability to pre-pandemic levels.
    • In August 2025, the Parliamentary Budget Officer estimated that 690,000 additional housing units, on top of baseline completions, will be needed by 2035 to eliminate the housing gap in Canada.
  • In 2025, there were 259,000 housing starts in Canada. According to the CMHC 2026 Housing Market Outlook, new home construction is set to decline through 2028 as developers face high costs, weaker demand and more unsold homes.
    • It estimates 247,000 starts in 2026, 223,000 starts in 2027 and 216,000 starts in 2028.
    • Rental projects are likely to continue to drive new supply but will moderate over the forecast period.
    • Condominium starts are expected to be particularly weak, especially in Toronto, where pre-construction sales fell to multi-decade lows in 2025.
    • Ground-oriented homes, such as single-detached homes, semi-detached homes and townhouses, are likely to recover later in the forecast period.
  • The Government of Canada is using every tool at its disposal to close the housing supply gap. This includes the creation and implementation of Build Canada Homes, the new federal agency that is building affordable housing at scale by using public lands, offering flexible financial incentives, attracting private capital, facilitating large portfolio projects, and supporting modern manufacturers.
  • The federal government has also introduced initiatives in recent years aimed at directly increasing the supply of market housing including:
    • 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; and
    • Launching the $4.4 billion Housing Accelerator Fund – a program that incentivizes local government to remove barriers that slow construction.
  • Other notable measures designed to increase the housing supply include the increase to the Canada Mortgage Bond limit, the introduction of the Canada Housing Infrastructure Fund to support infrastructure to enable housing development and the creation of a housing design catalogue to streamline housing designs.
  • To complement the above measures, ease pressures on housing and infrastructure, and support a return to sustainable immigration levels, in Budget 2025 the Government of Canada announced a reduction in permanent resident targets from 395,000 in 2025 to 380,000 in 2026. This decrease was coupled with a reduction to targeted temporary resident admissions from over 673,000 in 2025 to 385,000 in 2026.

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.
  • Building on the success of previous federal initiatives like the National Housing Strategy and Canada’s Housing Plan, this government will provide strong leadership to scale up affordable housing.
  • Through Build Canada Homes, this government will support affordable, non-market housing using modern and sustainable methods of construction, predictable and scalable financing solutions, and collaborative partnerships with all levels of government, Indigenous communities, and the not-for-profit and private sectors.

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 market rental rates). 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.
  • 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 grow its stock, but not to the scale needed to help restore housing affordability. The Government of Canada’s investments in non-market housing include:
    • The Affordable Housing Fund, which is providing $15.9 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) to preserve and expand community housing; and
    • The Canada Rental Protection Fund which is a $1.5 billion investment to help the community housing sector acquire rental apartment buildings and preserve affordability of rents over the long term.

Federal Homelessness Programming

Issue / question

What is the Government of Canada doing to address homelessness?

Suggested response

  • The Government of Canada is leading efforts to prevent and reduce homelessness, investing $5 billion through Reaching Home to support coordinated, evidence-based community responses.
  • Build Canada Homes will invest $1 billion to create transitional and supportive housing for people experiencing or at risk of homelessness.
  • Acknowledging that more needs to be done, this government will continue to work with communities, Indigenous partners, service providers and all levels of government to reduce homelessness.

Background

  • Reaching Home: Canada’s Homelessness Strategy: Launched in 2019 as part of the National Housing Strategy, this program is now a $5 billion investment over nine years, through 2027-28. Reaching Home provides funding to specific communities through the Designated Communities, Indigenous Homelessness, Rural and Remote Homelessness and Territorial Homelessness streams.
  • As of February 2026, Reaching Home has supported over 10,000 projects since April 2019. In the first six years of the program:
    • Over 202,000 people received prevention services such as short-term rental assistance or landlord mediation;
    • Over 112,000 people have been assisted in attaining more stable housing;
    • Over 48,000 people began receiving income assistance; and
    • Over 18,000 people started new paid employment.
  • The Indigenous Homelessness funding stream allocates funding directly to off reserve organizations that provide culturally appropriate services to Indigenous people experiencing homelessness. The Distinctions-based Approaches stream provides dedicated funding to address specific needs of First Nations, Inuit and Métis individuals.
  • Veteran Homelessness Program: Through 2027-28, the Services and Supports Stream provides up to $72.9 million in funding for rent supplements and wrap-around services and the Capacity Building Stream provides up to $6.2 million in funding for research on veteran homelessness and capacity building.
  • Unsheltered Homelessness and Encampments Initiative: Budget 2024 announced $250 million over two years through 2025-26 to address the urgent issue of unsheltered homelessness. Cost-matched funding agreements are in place until March 2026 with eight provinces, the three territories, as well as with municipalities in Ontario and Saskatchewan.
  • Build Canada Homes: This new federal agency will build affordable homes, support builders with financing, and encourage innovative building methods – using Canadian technology, workers and lumber, and sustainable building practices. It will focus primarily on non-market housing, supporting a mix of income needs as part of a national effort to double housing construction, restore affordability, and reduce homelessness. As announced on September 14, 2025, Build Canada Homes will deploy $1 billion to build transitional and supportive housing for people who are homeless or at risk of homelessness.

Buy Canadian

Issue / question

What is the Government of Canada doing to ensure that its investments in housing and infrastructure are supporting Canadian businesses?

Suggested response

  • The Government of Canada’s Buy Canadian Policy for federal procurement was announced and came into effect on December 16, 2025. Like other departments, Housing, Infrastructure, and Communities Canada will be implementing the Buy Canadian policy in respect of its grants and contributions funding.
  • The Policy is comprehensive, covering not only direct purchasing, but the breadth of federal investments and is being applied by departments, agencies, and Crown corporations.
  • Through the Policy, Housing, Infrastructure and Communities Canada, Build Canada Homes and the Canada Infrastructure Bank will maximize the impact of federal investments, strengthen Canada's economic competitiveness, create good jobs for Canadian workers, and deliver lasting prosperity for businesses across the country.
  • Leveraging major spending initiatives, including Build Canada Homes and the new Build Communities Strong Fund, will be our contributions to building big and bold projects using Canadian suppliers and manufacturers.

Background

  • Global supply chain disruptions and shifting markets are redefining how countries grow their economies. In response, the Government of Canada is developing a comprehensive industrial strategy to strengthen domestic capabilities, build Canadian expertise, and help industries pivot to new markets and opportunities.
  • On September 5, 2025, the Government of Canada announced a series of measures, including a comprehensive Buy Canadian Policy, to protect the Canadian economy and support Canadian workers and businesses, making Canada more resilient to changes in global trade.
  • Budget 2025 reinforced the federal government’s commitment to a comprehensive Buy Canadian Policy, moving from best efforts to a clear obligation to buy Canadian. Work to develop these measures remains ongoing and will be phased in. The main sector focus is on steel, aluminum, and wood products.
  • On December 16, 2025, the Government of Canada announced and put in force its Buy Canadian Procurement Policy Framework for federal procurements. It introduced requirements to prioritize Canadian content, suppliers, and materials, and reiterated commitments to support reciprocal procurement and support small- and medium-sized businesses. Departments and agencies, as well as Crown corporations, are responsible for applying these new requirements, as articulated through the policy instruments, for federal procurement. Buy Canadian measures will also be applied to grants and contributions programs.
  • Housing, Infrastructure and Communities Canada is collaborating with other federal departments and undertaking engagement to inform an implementation approach for grants and contributions and federal funding for housing and infrastructure. The objectives of Buy Canadian also extend to the activities of its portfolio Crown corporations: Canada Infrastructure Bank, The Jacques Cartier and Champlain Bridges Incorporated, Windsor-Detroit Bridge Authority and Canada Lands Company Limited.

Canada Housing Infrastructure Fund

Issue / question

How is the Government of Canada helping to build the core infrastructure needed to help neighbourhoods grow?

Suggested response

  • The federal government is making significant investments in critical infrastructure to directly support the construction of new homes and address the housing crisis.
  • The Canada Housing Infrastructure Fund is investing in the construction and upgrading of infrastructure – including drinking water, wastewater, stormwater, and solid waste systems – that in turn supports the creation of new homes.
  • Funding will be provided to provinces and territories on the condition that they commit to key actions that increase housing supply by lowering the cost of construction and increasing density. Municipalities and Indigenous communities can also access funding to support pressing infrastructure needs to enable even more housing.
  • Under the agreements with provinces and territories, 20% of the allocation is to be directed to projects in rural, northern, or Indigenous communities.

Background

  • The Government of Canada put forward in Budget 2024 several key measures to cut red tape, build more homes, and help communities grow. The Budget announced the launch of the Canada Housing Infrastructure Fund (CHIF) to accelerate the construction and upgrading of housing-enabling infrastructure relating to drinking water, wastewater, stormwater and solid waste infrastructure systems to support the construction of more homes.
  • Launched in fall 2024, the CHIF supports pressing infrastructure needs that directly enable housing, delivered to municipalities, Indigenous communities and other eligible recipients and provinces and territories (PTs) through agreements. The CHIF has a Direct Delivery stream and a Provincial and Territorial Agreement stream that supports long-term PT priorities while advancing federal housing objectives.
  • As of January 2026, agreements have been signed with 11 PTs, with one in active negotiations.
  • The CHIF direct delivery intakes are now closed and received hundreds of applications from across the country. This speaks to the great need for critical water, wastewater, stormwater and solid waste infrastructure all across Canada.
  • Under the direct delivery stream, there are 27 approved or announced projects representing an approximate federal investment of $780 million and could enable up to 193,230 housing units.
  • Budget 2025 announced that unallocated funding from the CHIF Direct Delivery stream will be repurposed for the new Build Communities Strong Fund (BCSF). Unselected eligible CHIF direct delivery applications may be considered for funding under the Provincial and Territorial Agreement stream of the program, where applicable, and under the upcoming BCSF, once it is established, with a focus on projects that are shovel ready.

Page details

Date modified: