On September 14, 2025, the federal government launched the Build Canada Homes agency, first announced in May’s Speech from the Throne.

The agency’s goals largely centre on non-market affordable housing, with a mandate to grow the proportion of housing that is for low- and middle-income households; create the conditions for high-capacity non-market housing; and generate long-term, predictable demand for factory-built housing.  

The agency also intends to focus on cost-efficient construction methods, including factory-built, modular, and mass timber housing, and will prioritize using Canadian building materials such as lumber and aluminum. 

What this means in terms of dollars and cents is an initial $13-billion investment. Of the $13 billion, the previously announced $1.5-billion Canada Rental Protection Fund will be launched within the newly created agency. 

Build Canada Homes has ambitious targets, prioritizing 4,000 factory-built homes on six federally owned sites located in Dartmouth, Longueuil, Ottawa, Toronto, Winnipeg, and Edmonton. It’s worth noting that none of the first six target municipalities are in BC, which is generally considered the epicentre of Canada’s nationwide housing affordability issues.  

BCREA is encouraged to see that the federal government, through the Build Canada Homes announcement as well as the GST exemption for first-time home buyers, is taking a supply-based approach to addressing housing affordability issues in Canada. Affordable, non-market housing is important, with current demand outpacing supply.  

That said, non-market housing is only one facet of the housing continuum, with about three per cent of Canadians living in subsidized housing. A broader approach will be required to address the totality of Canada’s housing needs. 

As the Build Canada Homes program continues its rollout, BCREA will continue to call on the federal government to repurpose the Housing Accelerator Fund to offset municipal development and amenity cost charges. 

To subscribe to receive BCREA publications such as this one, or to update your email address or current subscriptions, click here.