In a significant step toward addressing Canada’s deepening housing crisis, the federal government and the Quebec government, in partnership with Desjardins, have announced the construction of 1,000 new affordable housing units over the next three years.
The initiative, an expansion of the Desjardins Affordable Housing Initiative launched in 2022, represents a joint investment of nearly $184 million.
The project builds on the original agreement, which has already exceeded its targets. As of May 31, 2025, 1,198 units were already occupied, with another 908 under construction across 14 regions of Quebec.
This new phase will push the total number of units created under the initiative past 3,000 by 2028, all guaranteed to remain affordable for at least 35 years.
Funding and Project Scope
The funding for this expansion comes from a blend of provincial and federal sources. The federal government is contributing through the Canada-Quebec Agreement under the Housing Accelerator Fund (HAF), part of a $900 million commitment.
Quebec matched this with an additional $900 million in its 2023 economic update. Desjardins, Canada’s largest financial cooperative, will provide nearly $50 million in financing to community developers.
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Desjardins’ extensive network and streamlined support model help identify and fast-track housing projects led by cooperatives, community groups and municipalities.
A National Crisis, A Local Response
While this announcement is a welcome development, it underscores just how far Canada still has to go. A 2023 report from the Office of the Federal Housing Advocate estimated that Canada is missing 4.4 million affordable homes. Of those, 3 million are needed for households earning under $1,050 per month.
Quebec faces its own acute shortage. According to 2021 data, 30,500 households in Quebec have been waiting for social or affordable housing for more than two years. Construction delays have compounded the issue, with at least 25,000 units stalled, according to the Association des professionnels de la construction et de l’habitation du Québec.
How This Fits Into Canada’s Strategy
The federal government’s long-term goal is to double the rate of residential construction by streamlining permitting, accelerating financing and approval, and supporting public-private partnerships. The Housing Accelerator Fund is one of several tools being deployed to shift the focus toward non-market housing.
Recent developments include housing commitments in Toronto, Vancouver, and Halifax, but few projects have matched the scale of Desjardins’ initiative. Advocates say this model, which includes mixing public investment, local expertise, and cooperative financing, may be key to replicating success across provinces.
Looking Ahead
With construction already underway and thousands more units planned, the collaboration between Canada, Quebec, and Desjardins sets a precedent for how large-scale, affordable housing can be delivered. Still, advocates and experts caution that systemic change and sustained investment are essential if Canada is to meet the scale of demand.
As the housing crisis continues to displace low- and middle-income Canadians, today’s announcement is a signal that meaningful progress is possible, but only if partnerships like this become the rule, not the exception.
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