In a bold move to tackle Canada’s housing affordability crisis, Liberal Leader Mark Carney has unveiled an ambitious plan aimed at doubling the nation’s home construction rate. Announced on March 31 in Vaughan, Ontario, the initiative seeks to increase residential housing construction to nearly 500,000 new homes annually through the establishment of a federal housing entity, Build Canada Homes (BCH).
BCH is designed to function as a developer overseeing affordable housing projects, accelerating construction timelines, and providing financing to homebuilders. Carney emphasized the government’s renewed commitment to affordable housing, stating, “By getting government back into the business of building affordable homes and by making the market work better, we will drive a huge increase in housing supply so we can bring cost down for Canadians.”
A significant component of this plan involves allocating over $25 billion in financing to innovative Canadian prefabricated home builders, particularly those utilizing domestic technologies and resources like timber and softwood lumber. Additionally, the program earmarks $10 billion in low-cost financing and capital to construct deeply affordable homes targeting vulnerable populations, including students and seniors.
To streamline development and reduce costs, Carney’s strategy includes measures to cut red tape, such as halving municipal development charges for multi-unit residential housing over the next five years. He also proposes reintroducing the Multiple Unit Rental Building cost allowance, a tax incentive from the 1970s that allows investors to claim depreciation and other costs of an apartment building against unrelated income.
This housing plan builds upon previous federal initiatives aimed at addressing the housing crisis. In April 2024, the Canadian government introduced a comprehensive housing plan to unlock 3.87 million new homes by 2031, including a minimum of 2 million net new homes. Federal actions were projected to support at least 1.2 million new homes, with a call for all levels of government to contribute to building an additional 800,000 homes by 2031.
Carney’s current proposal also complements the Housing Accelerator Fund, a $4 billion initiative aimed at encouraging municipalities to implement transformative changes, such as removing prohibitive zoning barriers, to expedite housing development. To date, this fund has signed 179 agreements, collectively expected to fast-track over 750,000 housing units across Canada over the next decade.
By focusing on innovative construction methods, reducing bureaucratic obstacles, and providing substantial financial support, Carney’s plan aims to make homeownership more attainable for Canadians and address the pressing issue of housing affordability nationwide.
Source : Swifteradio.com
