The Canadian Construction Association (CCA) is urging all federal parties to treat construction as a national priority in the upcoming election, warning that underinvestment could stall growth, delay housing development and widen the infrastructure gap.
With both major party leaders proposing sharply different approaches to housing and construction, the results of the election could significantly shape the industry’s trajectory for years to come.
The warning comes amid rising concerns about Canada’s aging infrastructure, growing housing shortages and escalating construction costs, particularly as a result of the 25 percent tariffs recently imposed by the United States.
These tariffs are expected to increase overall construction costs in Canada by 6–8 percent in the near term, threatening project feasibility and affordability at a time when demand for housing and infrastructure is at an all-time high.
CCA’s “Construction for Canadians” Campaign Demands Action
The CCA, which represents over 18,000 member firms nationwide, has launched a pre-election campaign: Construction for Canadians. They are urging the public to sign a letter to their riding candidates in support of construction, which can be done on their website.
The initiative is supported by 57 associations across the country and calls on the next federal government to take immediate action on three core fronts: investing in trade-enabling infrastructure, addressing workforce development and modernizing procurement practices.
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The campaign stresses that the construction sector is not only foundational to Canada’s economy but central to building inclusive, resilient communities.
With over 1.6 million workers and $151 billion in economic impact, construction is one of the country’s largest employers, yet faces growing barriers due to outdated policies, skilled labour shortages and global trade disruptions.
Infrastructure and Housing Demands Collide with Trade Pressures
The call for investment comes at a time when Canada’s infrastructure system is straining under decades of deferred maintenance. According to Statistics Canada, more than $264 billion worth of public infrastructure is currently rated in poor or very poor condition. Roads, bridges, water systems and transit networks are all in need of repair or replacement.
The federal government has taken some initial steps through the National Infrastructure Assessment (NIA), which aims to guide long-term planning by identifying infrastructure priorities.
The first NIA, led by the Canadian Infrastructure Council, is focused on supporting housing growth through investments in water, wastewater, public transit and waste management systems.
Simultaneously, housing demand continues to outpace supply. The Canada Mortgage and Housing Corporation (CMHC) maintains that 3.5 million additional homes are needed by 2030 to restore affordability. However, that goal now faces even greater hurdles with the added burden of tariffs.
Industry analysts say the 25 percent U.S. tariffs on Canadian goods will sharply raise the cost of steel, aluminum, and other core materials. Builders and developers are already warning of project delays, tighter profit margins and cancelled developments as construction costs rise.
Carney and Poilievre on Construction and Housing
With construction costs climbing and affordability worsening, both Liberal Leader Mark Carney and Conservative Leader Pierre Poilievre have made housing a key election issue, but their proposed solutions differ significantly.
Carney has introduced a sweeping plan to double the annual number of homes built to 500,000 through the creation of Build Canada Homes, a new federal agency.
The plan includes tens of billions in financing for affordable and prefabricated housing, bulk purchasing of modular homes and $10 billion in grants and loans for deeply affordable housing, including shelters and student residences. It also emphasizes green building and climate resilience as core objectives.
The Carney plan would also halve development charges in cities and invest in retrofitting housing stock for energy efficiency. Under his leadership, the federal government would take a more hands-on role in housing construction, echoing the post-WWII housing response.
Poilievre’s approach centres on cutting taxes and regulations. His housing plan includes eliminating the GST on new homes under $1.3 million and tying federal infrastructure funding to municipal housing performance. Cities that fail to increase housing starts by 15 percent annually would face funding clawbacks, while those that exceed targets would receive bonuses.
He also proposes aggressive streamlining of permitting and development approvals, with a focus on removing what he calls bureaucratic roadblocks. While Poilievre has said he supports increasing housing supply, his strategy leans more on incentivizing the private sector and penalizing slow-moving municipalities, rather than direct federal involvement.
On sustainability, Carney has outlined specific funding for climate-resilient housing and energy retrofits. Poilievre has not prioritized green construction to the same extent but has emphasized reducing overall housing costs and accelerating building timelines.
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