Prime Minister Mark Carney announced the launch of Build Canada Homes on Sunday, September 14, 2025, establishing a new federal agency with an initial capitalization of $13 billion to address Canada's housing crisis.
A New Federal Agency for Housing
Build Canada Homes represents a consolidation of federal housing initiatives under a single entity designed to accelerate affordable housing construction across the country. The agency will leverage public lands, offer flexible financial incentives, attract private capital, and support modern manufacturing methods to build homes Canadians need.
The announcement was made at a press conference in Nepean, Ontario, where Carney stated, "The core challenge present in the housing market is it's just too hard to build". The agency aims to reduce upfront building costs and streamline the approval process for large-scale housing projects.
Leadership and Structure
Ana Bailão, former Toronto city councillor and deputy mayor, has been appointed as CEO of Build Canada Homes. Bailão served on Toronto City Council from 2010 to 2022, where she chaired the Planning and Housing Committee and worked extensively on housing issues, including the city's HousingTO 2020-2030 Housing Action Plan.
Three Primary Functions
Build Canada Homes will operate with three core mandates:
Build Affordable Homes: Lead planning, management, and construction of affordable housing projects across the country in collaboration with partners, focusing on large-scale developments.
Finance Affordable Homes: Provide predictable, low-cost financing to support non-market and Indigenous housing providers to expand affordable and community housing.
Catalyse the Housing Industry: Generate demand for innovative building methods like factory-built and prefabricated construction, helping manufacturers scale up and create sustainable jobs.
Initial Projects and Investments
The agency's first major initiative involves constructing 4,000 factory-built homes on six federally owned sites, with potential expansion to 45,000 units on these locations. The initial sites are located in Dartmouth, Nova Scotia; Longueuil, Quebec; Ottawa and Toronto, Ontario; Winnipeg, Manitoba; and Edmonton, Alberta.
Construction on these homes is expected to begin in 2026, according to senior government officials. The agency will prioritize cost-efficient and modern construction methods, including factory-built, modular, and mass timber construction.
Financial Breakdown
Of the $13 billion initial funding:
$1.5 billion will support the Canada Rental Protection Fund, which helps community housing groups acquire at-risk rental buildings to keep them affordable long-term
$1 billion is designated for transitional housing projects to help people at risk of homelessness
The remaining funds will support flexible financial incentives, from contributions to loans, loan guarantees, and equity investments
Buy Canadian Policy
Build Canada Homes will adopt the federal government's "Buy Canadian" policy, prioritising the use of Canadian materials and inputs. This approach is designed to bolster the domestic economy while addressing potential impacts from U.S. tariffs.
Existing Federal Assets
The agency will work with the existing Canada Land Bank, which currently lists 88 federal properties suitable for housing development, spanning 463 hectares. Carney has instructed federal ministers to identify additional government-owned land suitable for housing development.
The Canada Rental Protection Fund and transitional housing initiatives represent continuations and expansions of existing federal housing programmes, now consolidated under the new agency's mandate.
Johnny Dulong
Family Real Estate Advisor
902-209-4761
johndulong@exitmetro.ca
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