Scaling up affordable housing through a ‘Build Canada Homes’ proposal 

A roadmap for the federal government’s new housing initiative  

This report is part of the “Housing as essential social infrastructure” series.

Canada needs a $40 billion annual federal investment in non-market housing to address the country’s escalating housing crisis. This report is the culmination of a project working directly with non-market developers to figure out a model that “Build Canada Homes,” a new federal entity focused on increasing affordable housing supply and modernizing construction, could employ to unlock affordability in innovative, scalable, and sustainable ways.  

The model, based on analysis of real projects across three provinces, involves federal contracting with non-market developers to build on government land, with the government retaining ownership of assets to avoid immediate fiscal impacts while rental income offsets depreciation over time. Drawing from successful Canadian and international precedents, this approach could scale non-market housing to 200,000 units annually – 40 per cent of the federal target of 500,000 homes per year – providing permanently affordable housing for very low- to median-income households. 

Key findings 

1. Canada faces an unprecedented housing shortage: To end homelessness and fulfill the right to adequate housing, Canada requires at least 4.4 million affordable homes, including 3 million deeply affordable units for very low- and low-income households.  

2. Current federal programs are failing to meet the scale of need: Despite National Housing Strategy goals, fewer than 30,000 new non-market homes have been enabled since 2018, representing just 2-3 per cent of total annual completions.  

3. A $40 billion annual federal investment could transform housing supply: This infrastructure approach could build 80,000 affordable homes per year without immediate fiscal impact by retaining government ownership of assets.  

4. Non-market housing must become 40 per cent of new construction: To restore widespread affordability, Canada needs 200,000 non-market units annually out of the federal target of 500,000 homes per year.  

5. Real-world examples prove the model works: Four projects across Canada (highlighted in the report) show construction costs of $300,000 to $650,000 per unit, delivering rents affordable to very low- to median-income households.  

6. International models demonstrate proven success: Countries like Austria, Denmark, and Finland have used similar cost-based approaches to reduce homelessness while maintaining 11-27 per cent non-market housing stock.  

7. Without major federal action, housing remains unaffordable everywhere: There is currently no major Canadian city where homeownership is affordable to median-income households, with Vancouver’s median multiple reaching an “impossibly unaffordable” 11.8, or four times the cost a median-income household can afford. 

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Read all publications in the “Housing as essential social infrastructure” series

• Scaling up affordable housing through a ‘Build Canada Homes’ proposal
• Rights-based and ambitious: A new chapter for housing policy in Canada
• Scaling housing building in Canada: Leveraging military infrastructure
• Building housing like we did the St. Lawrence Seaway