Prime Minister Mark Carney has announced the creation of Build Canada Homes, a new federal agency with a sweeping mandate to supercharge homebuilding and ease Canada’s housing crisis.

The government is committing $13 billion in initial capital to the initiative, which will focus on building affordable and community housing for low-income households, transitional housing to combat homelessness, and affordable homes for the middle class.

“Canada’s new government is relentlessly focused on bringing down housing costs. Central to that mission is rapidly scaling up the supply of homes. 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,” said Prime Minister Carney.

The new agency will act as a one-stop shop for affordable housing, working alongside provinces, territories, municipalities, Indigenous communities, and private developers. By streamlining approvals and unlocking federal land, Build Canada Homes aims to double the pace of housing construction.

Its mandate is anchored on three priorities: scaling up construction at speed, deploying modern methods of building, and prioritising Canadian-made materials. Build Canada Homes will partner with industry and governments to simplify access to land and financial resources, remove land costs by developing on federal properties, and deliver large portfolio projects that reduce risk for private builders. Canada Lands Company will be transferred to its portfolio, providing access to 88 federal properties spanning 463 hectares.

An intense focus will be placed on factory-built, modular, and mass timber homes to accelerate delivery. These methods could cut building times by up to 50 per cent, reduce costs by as much as 20 per cent, and lower emissions during construction. The programme will also prioritise low-carbon materials and efficient design. Under a new Buy Canadian policy, the agency will give preference to projects that use Canadian lumber, steel, aluminium, and mass timber, strengthening domestic industries and supporting skilled employment.

Housing Minister Gregor Robertson emphasised the importance of speed and innovation, noting: “It’s not just about building more – it’s about building better and building bolder. Build Canada Homes will support new ways of building, leverage public lands, and accelerate affordable home building to deliver real results for Canadians, so that everyone has a place to call home.”

To lead the agency, Carney has appointed Ana Bailão as Chief Executive Officer. A former Toronto Deputy Mayor, Bailão played a central role in creating the Housing Now programme during her time on City Council and most recently worked in the private sector with Dream Unlimited. “Affordable housing has always been more than policy – it’s a personal mission. From my time in public office to my work in the private sector, I’ve seen firsthand how safe, stable housing transforms lives. At Build Canada Homes, we are bringing together government, industry, and communities to build homes faster, smarter, and more sustainably. We’re not just building units – we’re building opportunity, dignity, and a future where everyone in Canada has access to the homes they need – and deserve,” she said.

The Prime Minister also announced the agency’s first four investments. These include developing six federal sites in Dartmouth, Longueuil, Ottawa, Toronto, Winnipeg, and Edmonton to deliver 4,000 factory-built homes with capacity for up to 45,000 units across the wider portfolio. A $1.5 billion Canada Rental Protection Fund will be introduced to help preserve at-risk affordable rental properties. The agency will deploy $1 billion for transitional and supportive housing in collaboration with local governments and Indigenous partners. It will also work with the Nunavut Housing Corporation to build more than 700 units, approximately 30 per cent of which will be factory-built off-site.

Finance Minister François-Philippe Champagne described the new agency as a cornerstone of Canada’s economic strategy: “Build Canada Homes is an ambitious step toward solving one of the most pressing challenges facing Canadians, and will be a key focus in the upcoming budget. Through innovative partnerships, we will deliver more affordable housing and create new skilled jobs, while driving a new era of residential construction across the country.”

Build Canada Homes will begin life as a Special Operating Agency within Housing, Infrastructure and Communities Canada, before evolving into a standalone entity in the new year. With the transfer of Canada Lands Company, it will gain access to extensive public land holdings to accelerate construction. Further measures to lower building costs and catalyse private investment are expected to be unveiled in Budget 2025.

With affordability at the centre of national policy, the launch of Build Canada Homes marks one of the most ambitious housing initiatives in Canada’s history, designed to reshape the country’s construction industry and deliver homes for generations to come.