Prime Minister Mark Carney addressed the media at a press conference in Mississauga, Ontario, on Friday, September 5, 2025. The Canadian Press
Prime Minister Mark Carney announced the launch of a new federal agency, Build Canada Homes, on Sunday. The agency will oversee plans to build 4,000 homes on six federally owned sites as part of a $13 billion budget aimed at speeding up affordable housing construction.
Financial Incentives for Builders
Carney said the $13 billion will provide financial support to builders, helping reduce upfront costs and encourage the construction of affordable homes. “The core challenge present in the housing market is it’s just too hard to build,” Carney said during a press conference in Nepean.
Planned Locations
While specific locations have not been finalized, Carney confirmed that the homes will be built in Dartmouth, N.S., Longueuil, Que., Ottawa, Toronto, Winnipeg, and Edmonton. Construction on the first homes is expected to begin next year.
Land Identification and Cost Reduction
The Prime Minister has asked government departments to identify available land for housing projects. This will add to the 88 properties listed in the Canada Land Bank. Carney said this approach will help lower construction costs, rents, and new home prices for Canadian families.
Streamlining Permits and Ongoing Programs
Build Canada Homes will speed up permitting for large projects by giving faster approvals. The agency will also continue the government’s rental protection fund, which helps community housing groups purchase private rental units to keep them affordable.
Affordable Housing Standards and Transitional Housing
The agency follows the Canada Mortgage and Housing Corporation definition of “affordable housing,” where costs are less than 30 per cent of pre-tax household income. A $1 billion fund will also support transitional housing projects to help people at risk of homelessness.
Modern Construction Methods
Carney emphasized the agency will prioritize cost-efficient and modern building methods, including modular construction, factory-built homes, and mass timber. Factory-built homes can be produced off-site and assembled in days, allowing construction to continue even in winter.
Partnerships and Regional Focus
Build Canada Homes will partner with the Nunavut Housing Corporation to produce 700 homes, about 30 per cent of which will be built off-site and shipped to Nunavut. The agency will also follow the federal “Buy Canadian” policy, prioritizing Canadian materials to support the economy amid U.S. tariffs.
Leadership and Oversight
Ana Bailão, a former Toronto city councillor and deputy mayor with experience on the board of Toronto Community Housing, will serve as CEO of Build Canada Homes. Carney described her as highly experienced in affordable housing and well-suited to lead the agency.
