The federal government just handed Build Canada Homes some serious tools to work with. On February 5th, Housing Minister Gregor Robertson tabled legislation that would transform the agency into a Crown corporation, giving it the power to buy land, finance projects, and partner with private developers. It's a big move, and it's raising questions about what happens next.

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The basics of what's changing

Here's what the Build Canada Homes Act would do. The agency would officially become a Crown corporation instead of operating under Housing, Infrastructure and Communities Canada. That shift sounds bureaucratic, but it matters. It means Build Canada Homes gets more independence to take on risk and the operational room to move faster on projects without waiting for government approvals at every turn.

The legislation also folds Canada Lands Company into Build Canada Homes. Canada Lands has been developing federal properties for years, and now all that land and expertise moves under one roof. The goal is to streamline things. No more coordinating between two separate entities when there's federal land that could be used for housing.

Build Canada Homes would get land acquisition powers too. That's new. The agency could buy property, develop it, and build housing on it. It could also finance projects, partner with private developers, and operate rental buildings long-term. Minister Robertson called land acquisition a "key component" of the strategy, though he didn't point to any specific parcels they're eyeing yet.

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What they've done so far

Build Canada Homes launched in September 2025 with a $13 billion initial budget. Since then, they've moved on six direct-build projects in Dartmouth, Longueuil, Ottawa, Toronto, Winnipeg, and Edmonton. They've also signed four major partnerships with Ottawa, Nova Scotia, Quebec, and a three-way deal with Nunavut. Together, these represent over 7,500 homes.

The agency's mandate covers a wide range. They're supposed to build supportive housing for people experiencing homelessness, deeply affordable units for low-income families, and market-rate homes for middle-class Canadians. It's a lot of ground to cover, and they're doing it through partnerships with provinces, cities, Indigenous organizations, and private builders.

Factory-built housing is part of the pitch. Modular construction can cut timelines and costs, and Build Canada Homes is pushing it as a way to scale up production. The six initial sites are focusing on this approach, with the idea being that once you perfect the process on federal land, you can replicate it elsewhere.

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The missing benchmarks

Here's where things get fuzzy. The legislation doesn't spell out how many homes Build Canada Homes is actually supposed to build. There are no targets, no price points, no definitions of what "affordable" means in this context. Housing researchers noticed immediately.

Andy Yan, a professor at Simon Fraser University, put it simply: "How do you measure success?" He pointed out that while the agency talks about development, there's nothing about operations and maintenance. Building homes is one thing. Keeping them affordable and functional for decades is another.

Mike Moffatt from the Ivey Business School said benchmarks are necessary to judge whether the agency succeeds or fails down the line. "Are we building homes for single individuals, or for families?" he asked. Without knowing the price points or the types of housing being prioritized, it's hard to evaluate the impact.

Carolyn Whitzman, a housing researcher at the University of Toronto, expects to see targets in a new national housing strategy within the next year. The legislation might be silent on specifics, but she thinks the benchmarks will show up elsewhere in policy documents.

When asked about quotas during the announcement, Robertson said the number of homes built would depend on how much private capital they can attract. The agency's model relies on leveraging public funding to bring in private investment, which could mean more units overall than traditional public-only funding. But it also means the numbers aren't set in stone.

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The Parliamentary Budget Officer weighs in

In December, the Parliamentary Budget Officer released an analysis estimating that Build Canada Homes would create about 26,000 units over five years. That's a 2.1% increase in housing completions compared to baseline projections. The report called it "a modest amount" added to housing supply.

The PBO broke down where the money's going: $625 million to help community housing providers buy rental apartments at risk of being sold or redeveloped, $1 billion for transitional and supportive housing, and $5.4 billion in grants and loan concessions for affordable housing projects.

But the report also noted that overall federal housing spending is set to drop 56% from $9.8 billion in 2025-26 to $4.3 billion in 2028-29. That decline comes from programs ending and budget cuts, which means Build Canada Homes is entering the picture as other federal housing initiatives wind down.

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Political reactions are mixed

The Conservative Party hasn't said whether it'll support the bill. MP Garnett Genuis said he's looking forward to studying it and discussing it with colleagues, but stopped short of committing either way. Conservatives have previously criticized Build Canada Homes for adding bureaucracy to homebuilding, so support isn't guaranteed.

The NDP's housing critic, Jenny Kwan, pointed out that the legislation doesn't define "affordable housing." She also raised concerns about the broad powers being granted, noting that Build Canada Homes could finance and partner with virtually anyone, acquire land, operate housing, and invest in third-party ventures with minimal constraints and limited parliamentary oversight.

Kwan also said turning the agency into a Crown corporation "removes accountability from the minister of housing." That's a concern about how much direct control Parliament would have over the agency's decisions once it operates independently.

Moffatt sees the independence as potentially valuable. He noted that any government agency could face political interference, and Build Canada Homes would now have a layer of separation. "You want an agency like Build Canada Homes to be building homes where they're needed the most, building homes where they can get the best deal possible," he said. You don't want project announcements timed to election cycles.

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What this means for the housing market

Canada needs more housing. The Canada Mortgage and Housing Corporation estimates the country needs an additional 3.5 million homes by 2030 to restore affordability. In 2024, housing starts reached about 240,000 units, but projections suggest Canada needs closer to 480,000 units annually to meet demand.

Build Canada Homes is one piece of the response, but it's not the whole solution. The agency's projected 26,000 units over five years won't close the gap by itself. What it could do is demonstrate new approaches to construction, financing, and public-private partnerships that other builders and governments could replicate.

The focus on factory-built housing matters for the industry. If Build Canada Homes can prove that modular construction works at scale and produces quality homes that people want to live in, it could shift how builders across the country approach projects. Faster timelines and lower costs would help, especially in markets where construction expenses have made new developments financially unfeasible.

The land acquisition authority could also change dynamics in tight markets. Federal ownership of land takes land costs out of the equation for some projects, which directly impacts affordability. If the agency buys strategically in areas with good transit access and infrastructure, those projects could help fill the "missing middle" housing that's in short supply in most cities.

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The bigger picture on affordability

Build Canada Homes exists because the housing market wasn't solving the affordability problem on its own. Decades of policy choices, restrictive zoning, rising construction costs, and financialization of housing have created a situation where even middle-class households struggle to find affordable options.

Some researchers argue the crisis isn't just about supply. Recent analysis from the Canadian Centre for Policy Alternatives suggests financialization, not demographics, drove housing costs up. They point out that even the CMHC's proposal to build millions of new homes would only bring prices back to pre-pandemic levels.

Others focus squarely on supply. TD Economics estimates Canada could be short over 300,000 units from 2024-2026 as population growth outpaces construction. The debate over whether supply alone can fix affordability continues, but most experts agree more housing is necessary even if it's not sufficient by itself.

Build Canada Homes is betting that government can play a direct role in construction, not just funding and incentives. It's a return to an older model of housing policy, when governments built public housing at scale. Whether it works this time depends on execution, funding, political support, and whether the agency can actually deliver homes that people need at prices they can afford.

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What to watch for

The legislation still needs to pass, and that's not a given. Opposition parties will scrutinize the details, and the debate over accountability, oversight, and benchmarks will intensify. If the bill does pass, the transition from special operating agency to Crown corporation would follow.

Look for announcements about specific land acquisitions. The agency has the authority, but we haven't seen them use it yet. Where they buy and what they plan to build there will signal their priorities.

Watch for the updated national housing strategy that Whitzman expects. That's where the targets and benchmarks might finally appear, filling in the gaps that the legislation left open.

And pay attention to the direct-build projects already underway in six cities. Those 4,000 factory-built homes will be the proof of concept. If they're delivered on time, on budget, and people want to live in them, the model has legs. If they're delayed, over budget, or poorly designed, that's a different story.

For buyers, sellers, and investors in Canadian real estate, Build Canada Homes represents a shift in how government approaches housing development. The agency won't flood markets with supply tomorrow, but its projects could influence where new housing gets built, what types of homes are prioritized, and how quickly construction happens. That ripple effect matters, whether you're looking to buy your first home, planning your next investment, or just trying to understand where the market's headed. If you're navigating the housing market in the Okanagan or wondering how federal housing initiatives might affect your plans, Coldwell Banker Horizon Realty can help you make sense of the local market and find opportunities that align with your goals.