This story was updated September 16.
The Build Canada Homes program will begin with $13-billion to fund 4,000 new modular homes, with capacity to scale up to 45,000, Prime Minister Mark Carney announced Sunday.
The six initial sites for the work will be in Edmonton, Winnipeg, Toronto, Ottawa, Longueuil, and Dartmouth, Nova Scotia, CBC reports.
Building Canada Homes is meant to “supercharge housing construction across Canada,”, Carney told media Sunday, helping provinces, territories, and Indigenous communities to expand “deeply affordable and community housing” while building supportive and transitional housing. “The agency will be able to approve construction on public lands and provide funding in the early stages of housing development projects,” the news story states.
Carney announced former Toronto city councillor Ana Bailão as Building Canada Homes CEO.
The new agency will “leverage public lands, offer flexible financial incentives, attract private capital, facilitate large portfolio projects, and support modern manufacturers to build the homes that Canadians need,” the Prime Minister’s Office said in a release. “Canada’s new government will bring federal lands, faster approvals, and strong incentives to the table. The private sector will bring construction capacity, innovation, supply chains, and financing,” with a primary focus on non-market housing to double construction, restore affordability, and reduce homelessness.
Carney’s office said the new agency will take over the portfolio of the Canada Lands Corporation, giving it access to a public land bank of 88 properties totalling 463 hectares, “approximately the size of downtown Ottawa”. It will use bulk procurement and long-term financing to mainstream “cost-efficient and modern methods of construction such as factory-built, modular, and mass timber,” with the aim of reducing construction time by up to 50%, costs by up to 20%, and emissions by 20% during construction.
“To supplement these efforts, wherever possible, Build Canada Homes will prioritize low-carbon materials, low-carbon technologies, and efficient design,” the PMO said. Under the government’s new Buy Canadian policy, it will also maximize use of domestic lumber, materials, and supply chains.
The Pembina Institute said the rollout did a good job of signalling the urgency of the housing crisis, but added that commitments to affordable, low-carbon construction must follow.
“We’re pleased to see BCH prioritize modular and factory-built housing, which can reduce construction costs by up to 20 to 25%, shorten build times, and lower carbon emissions,” Pembina Buildings Director Kevin Lockhart said in a release. “But to truly serve Canadians, these homes must be affordable to build and operate, resilient to severe weather, insurable, and affordable to heat and cool.”
Lockhart added that most Canadian homes “were designed for a past climate. Without stronger building codes and targeted funding, homes and businesses will remain vulnerable. Homes must meet high performance standards to ensure long-term affordability and climate resilience.”
Carney’s announcement came just two days after Manitoba became the first province to sign on to the Canada Greener Homes Affordability Program, which offers free energy retrofits for low- and median-income households. Efficiency Manitoba will receive nearly $30 million in federal funds to deliver the program.
“By helping families reduce their energy bills, we’re not only supporting affordability—we’re also building a cleaner, more resilient future for everyone,” federal Environment and Climate Minister Julie Dabrusin said in a release.
The program means “even more support to Manitobans as they work with trusted delivery partners—making home retrofits more accessible, equitable and impactful,” added Manitoba Environment and Climate Change Minister Mike Moyes.
