Prime Minister Carney Launches Build Canada Homes to Accelerate Affordable Housing
New federal agency aims to double construction, deploy modern methods, and reduce homelessness nationwide
Ottawa, Ontario — Prime Minister Mark Carney has unveiled Build Canada Homes (BCH), a new federal agency tasked with tackling Canada’s housing crisis by rapidly scaling up the construction of affordable homes across the country.
BCH is being capitalized with an initial $13 billion and will serve as the federal government’s one-stop shop for affordable housing. Its mandate includes building deeply affordable housing for low-income households, transitional and supportive housing to reduce homelessness, and affordable homes for the middle class through partnerships with private developers.
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— Mark Carney (@MarkJCarney) September 14, 2025
Three-pillar strategy
The government has outlined a three-pillar approach to BCH:
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Build at scale and speed — Partner with provinces, municipalities, Indigenous communities, and developers to deliver affordable housing projects, leveraging federal lands and offering flexible financial incentives. Canada Lands Company is being transferred to BCH, giving it access to 88 federal sites covering 463 hectares.
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Modern construction methods — Deploy factory-built, modular, and mass timber housing to cut construction timelines by up to 50%, reduce costs by 20%, and lower emissions. BCH will mainstream sustainable methods of construction nationwide.
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Buy Canadian policy — Prioritize Canadian lumber, steel, aluminum, and mass timber to strengthen supply chains and create jobs, while scaling a new homegrown housing industry.
Early projects announced
The agency’s first wave of initiatives includes:
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Six federal land sites in Dartmouth, Longueuil, Ottawa, Toronto, Winnipeg, and Edmonton to deliver 4,000 factory-built homes, with potential for up to 45,000 units across its portfolio.
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A $1.5 billion Canada Rental Protection Fund to preserve affordable rental housing by helping community groups acquire at-risk buildings.
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$1 billion for transitional and supportive housing for people experiencing homelessness, paired with provincial and Indigenous-led employment and health supports.
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A partnership with the Nunavut Housing Corporation to build over 700 public, affordable, and supportive homes, with 30% using factory-built construction.
Leadership and mandate
The Prime Minister appointed Ana Bailão, former Toronto Deputy Mayor and current housing executive, as CEO of Build Canada Homes. Bailão has long advocated for affordable housing, leading projects such as Toronto’s Housing Now initiative.
“Canada’s new government is relentlessly focused on bringing down housing costs,” said Prime Minister Carney. “Build Canada Homes will transform the way government works with the private sector to build… faster, sustainably, and at scale.”
Housing Minister Gregor Robertson and Finance Minister François-Philippe Champagne called the launch an ambitious step that will expand affordable housing and create skilled jobs nationwide.
Building a new Canadian housing industry
Officials emphasized that BCH is not only about increasing supply, but also about building a new Canadian housing industry that uses modern technology, Canadian materials, and sustainable practices. Future measures to reduce costs and mobilize private capital will be included in Budget 2025.
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