The federal government has unveiled new details of its Build Canada Homes (BCH) initiative, a housing entity designed to accelerate affordable housing development, reduce costs and prioritize Canadian-made materials.
Prime Minister Mark Carney, who made housing a central issue during this spring’s federal election, said the program will target nearly 500,000 new homes annually over the next decade.
The aim is to get the federal government back into the business of building affordable housing at scale.
Support for Builders and Communities
The BCH will serve as both developer and financier, supporting co-ops, non-profits, Indigenous housing providers and private builders.
According to a consultation document released by the federal housing department, the entity will provide $25 billion in debt financing and $1 billion in equity financing to prefabricated homebuilders.
Prefabricated and 3D-printed methods are expected to reduce construction timelines by up to 50 percent and cut costs by as much as 20 percent.
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Workforce and Manufacturing Incentives
The program will also issue bulk orders to manufacturers, create regional production hubs and tie federal funding to the hiring of apprentices and recent graduates.
Financial supports under consideration include loans, equity investments and loan guarantees, in addition to direct contributions.
Softwood Lumber Measures
Beyond housing, the plan introduces measures to bolster Canada’s softwood lumber sector.
The government pledged up to $700 million in loan guarantees to keep forestry operations afloat, $500 million for diversification projects and $50 million for retraining more than 6,000 workers.
Federal procurement rules will also shift to prioritize Canadian lumber in homebuilding and infrastructure projects.
Addressing the Housing Shortfall
The urgency behind the initiative comes as the Canada Mortgage and Housing Corporation warns that current housing starts fall far short of what is needed to restore affordability.
The agency recently revised its projections downward, forecasting just over 237,000 starts in 2025, less than half the pace required.
Program Structure and Next Steps
BCH will consolidate existing federal programs such as the Affordable Housing Fund and Federal Lands Initiative under one umbrella, while also acquiring new land for housing development.
The government estimates the entity will cost over $11 billion in its first four years, though it remains undecided whether BCH will operate as a Crown corporation or as a temporary special-purpose body.
Public consultations on the program design are open until the end of the month, with officials signaling that feedback from builders and housing advocates will directly shape the rollout.
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