Is Build Canada Homes moving too slow to meet demand? | CBC News

The federal initiative to accelerate residential building was unveiled just over a year ago by Prime Minister Mark Carney at a site with partially assembled factory-built houses in Ottawa. It has since pledged backing for close to 19,000 lower-cost homes nationwide, though only around 2,000 have reached the construction stage.

The agency behind the effort formally became a Crown corporation in July after new housing legislation was approved. Officials say much of the intervening period involved administrative work, arranging transfers of public land and finalizing agreements with other governments.

Its main emphasis is rental housing outside the private market, with payments generally tied to household earnings instead of prevailing prices. It is also working with private firms to create lower-priced ownership options aimed at middle-income households.

The slow start follows decades of limited federal involvement. After deficits grew and borrowing costs climbed in the late 1980s and early 1990s, Ottawa scaled back housing spending, ended its co-operative program and stopped funding new low-cost units. Housing Minister Gregor Robertson has acknowledged that long absence, while former Bank of Canada official Fettig recalled mortgages at "14 per cent" during that earlier period.

Current production remains well below what analysts say is needed. The national housing agency reports about 250,000 starts per year over the last two years, while chief economist Mathieu Laberge says the pace must double to bring back 2019 affordability levels. Laberge described the shortfall as "putting future affordability at risk" and pointed to "pent-up demand" among younger residents and newcomers. Industry representative Wilkes said Ontario tax relief and lower development fees have helped ease strain in Toronto and nearby communities, and Fettig predicted the new tools for builders and community groups will help over time.