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Build Canada Homes to develop housing on federal lands

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Staff Report
September 22, 2025 9:31am

Prime Minister Mark Carney has announced the creation of Build Canada Homes, a new federal agency tasked with accelerating the construction of affordable housing across the country.

The government has committed an initial $13 billion to launch the initiative. According to the federal government, Build Canada Homes will focus on building non-market and community housing, while also working with private developers to expand affordable housing for middle-income Canadians.

The agency will prioritize transitional and supportive housing for people experiencing or at risk of homelessness.

The agency will also take over management of federal land through Canada Lands Company. This transfer gives it access to 88 properties across the country that are considered suitable for housing development.

Carney said the initiative is central to tackling Canada’s housing shortage. “Build Canada Homes will transform the way government works with the private sector to build,” he said. “We will create an entirely new housing industry using Canadian technology, Canadian workers, and Canadian resources.”

The government said the agency will emphasize modern construction methods such as modular and factory-built housing to cut building times and costs, while reducing emissions.

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It will also apply a “Buy Canadian” policy, prioritizing materials like Canadian lumber, steel, and mass timber to support domestic industries.

Ana Bailão, a former Toronto city councillor and affordable housing advocate, has been appointed as the agency’s first chief executive officer. “At Build Canada Homes, we are bringing together government, industry, and communities to build homes faster, smarter, and more sustainably,” Bailão said.

The government outlined four early projects under the new agency. These include building 4,000 factory-built homes on federal land in six cities, creating a $1.5-billion rental protection fund, investing $1 billion in transitional housing, and developing more than 700 affordable units in Nunavut in partnership with the territory’s housing corporation.

Housing Minister Gregor Robertson said the agency’s role is to accelerate construction by leveraging public lands and adopting new building technologies. “It’s not just about building more – it’s about building better and building bolder,” he said.

Finance Minister François-Philippe Champagne called the agency “an ambitious step toward solving one of the most pressing challenges facing Canadians,” adding it will also create new jobs and strengthen the construction industry.

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