Canada launches Build Canada Homes with $13b (AUD $14.7b) modular housing plan

Canada has entered a new phase in its response to the housing crisis with the launch of Build Canada Homes, a federal agency tasked with accelerating affordable housing delivery across the country. Announced by Prime Minister Mark Carney, the agency is designed to build at scale, reduce homelessness, and expand housing access for Canadians facing affordability pressures. (main image: Build Canada Homes was launched at Caivan. Credit image: Caivan.)

Federal backing and modular housing focus

Backed by an initial $13 billion (AUD $14.7 billion) capitalisation, Build Canada Homes will act as a centralised, one-stop agency supporting developers, provinces, territories, municipalities, and Indigenous communities. It will focus primarily on non-market housing while also partnering with private developers to increase affordable supply for middle-income households.

The agency has been created with a clear mandate: streamline access to public land, speed up approvals, and provide flexible financial incentives to derisk housing projects. Canada Lands Company will be transferred under the Build Canada Homes portfolio, unlocking 88 federal properties across 463 hectares for residential development.

Prime Minister Mark Carney said the new agency represents a structural shift in how housing will be delivered. “Canada’s new government is relentlessly focused on bringing down housing costs. Central to that mission is rapidly scaling up the supply of homes,” he said. “Build Canada Homes will transform the way government works with the private sector to build. We will create an entirely new housing industry using Canadian technology, Canadian workers, and Canadian resources – and give builders the tools they need to build more, build sustainably, and build at scale.”

Watch the launch of Build Canada Homes

Central to the agency’s strategy is the use of modern methods of construction, particularly factory-built and modular housing. Bulk procurement, long-term financing, and partnerships with Canadian manufacturers are expected to cut build times by up to 50%, reduce costs by as much as 20%, and lower emissions by approximately 20%. Initial projects will prioritise six federal sites in Dartmouth, Longueuil, Ottawa, Toronto, Winnipeg, and Edmonton, where the government plans to deliver 4,000 modular homes. These sites could ultimately support up to 45,000 units, signalling the scale of ambition underpinning the agency’s early pipeline.

Expanding affordable supply and protecting rentals Beyond new construction, Build Canada Homes will oversee the $1.5 billion (AUD $1.7 billion) Canada Rental Protection Fund, aimed at safeguarding existing affordable rental housing. The initiative will enable the community housing sector to purchase at-risk apartment buildings, ensuring affordability over the long term. A further $1 billion (AUD $1.13 billion) will support the development of transitional and supportive housing for Canadians experiencing or at risk of homelessness, with investments paired with health and employment supports.

The agency has also announced a partnership with the Nunavut Housing Corporation to deliver more than 700 public and affordable housing units, with around 30% expected to be modular builds. This reflects the national intent to embed industrialised construction into Canada’s housing strategy and extend it to remote and northern regions where supply chains are constrained.

Alongside these efforts, the new Buy Canadian policy will direct demand through domestic industries, prioritising Canadian lumber, steel, aluminium, and mass timber. The policy is intended to strengthen supply chains, support regional economies, and create skilled jobs across the construction sector.

Agency leadership and early rollout
Build Canada Homes will be led by Ana Bailão, former Deputy Mayor of Toronto and long-time housing advocate. She brings extensive experience in public and private housing initiatives, including leadership roles at Toronto Community Housing and Dream Unlimited Corporation. Bailão will oversee the agency’s first wave of projects while engaging provinces, territories, Indigenous communities, and private developers to scale up housing delivery.

Carney said the agency’s rapid deployment is central to its success. “We are building a framework that allows homes to be delivered faster, smarter, and at scale,” he noted. “By combining federal land, private capital, and modern construction, we can finally deliver the homes Canadians need – not in decades, but within years.”

Budget 2025 is expected to include additional measures to lower construction costs and catalyse private capital. Together, these initiatives position modular housing at the centre of Canada’s housing recovery, aiming to double annual housing starts and create a new industrialised homebuilding sector capable of building faster, more sustainably, and at scale.

See: Build Canada Homes