Build Canada Homes unveiled its new proposal portal for housing projects on National Housing Day, marking a significant step forward for Prime Minister Mark Carney's signature housing initiative. The portal, which launched in late November, will allow developers, non-profits, municipalities, and Indigenous partners to submit projects for federal support.

"For decades, we've talked about housing as a challenge and now today, we know it's more than that. It's a test of who we are as a nation," said Ana Bailão, CEO of Build Canada Homes, during her keynote address at the Empire Club in Toronto. "Across the country, families are being squeezed by rising rents, young people are leaving cities they love, communities are struggling to keep pace with demand."

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Two Priority Areas: Transitional Housing and Shovel-Ready Projects

The portal will focus on two kinds of projects, Bailão explained. First, there's $1 billion earmarked for transitional housing. "There is immediate need for transitional housing and Build Canada Homes wants to get these projects out as soon as possible," Bailão said, noting that the agency has been in conversations with cities and provincial governments because transitional housing requires operating and wrap-around services.

This fund is intended to support the most vulnerable groups, such as women fleeing violence and youth aging out of care. Bailão said Build Canada Homes is hoping its $1 billion transitional housing fund will start seeing results within the next few weeks.

Second, the portal will consider proposals for "shovel-ready" projects that can begin within the next 12 months. "We're going to be looking at who is able to provide the highest amounts of affordable housing using modern methods of construction and what kinds of partnerships, what kinds of innovation are coming in," Bailão said.

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Factory-Built and Modular Construction Are Priorities

Build Canada Homes is particularly interested in proposals using innovative building methods such as factory-built, prefab and modular, and Canadian-sourced materials, according to the portal's Investment Policy Framework.

Many municipalities already have experience developing transitional housing using modular methods. Build Canada Homes wants to leverage that experience and scale it nationally.

The agency is currently prioritizing six sites that will produce 4,000 units on federal land in Dartmouth, Longueuil, Ottawa, Toronto, Winnipeg, and Edmonton, with construction expected to start in 2026. Bailão said the agency is also looking at another 18 properties to develop affordable housing.

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Affordable Housing Defined as 30% of Local Median Income

The program will consider specific community needs, such as proximity to transit, and is defining affordable housing as not more than 30% of local median incomes. That's a critical threshold.

Canada ranks among the lowest among OECD countries for social housing, creating a need for housing "across the entire spectrum of affordability, including supportive and transitional housing for those who need it the most," Bailão said.

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$13 Billion Initial Investment to Build Affordable Housing

Ottawa committed an initial investment of $13 billion to Build Canada Homes to develop affordable housing over the next five years. The agency was launched on September 14, 2025, as a special operating agency within Housing, Infrastructure and Communities Canada.

The broader proposal included over $25 billion in financing for prefabricated home builders and $10 billion in financing for affordable home builders. The goal is to double Canada's residential construction rate to 500,000 units per year.

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Who Ana Bailão Is

Bailão, a former Toronto deputy mayor who chaired the city's planning and housing committee, most recently worked as Head of Affordable Housing and Public Affairs for developer Dream Unlimited. She immigrated to Canada from Portugal at age 15 and holds a Bachelor of Arts from the University of Toronto.

Her experience spans both public policy and private development, positioning her uniquely to navigate the complex relationships between governments, non-profits, and developers that Build Canada Homes will require.

Bailão declined to comment on possible partnerships that are already being discussed, but said Build Canada Homes is hoping the portal will help speed and scale up processes.

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Community Housing Sector Concerns

The Canadian Housing & Renewal Association, the national voice of community housing, has been working to ensure Build Canada Homes reflects the needs and priorities of the community housing sector.

In their submission to Build Canada Homes' Market Sounding Guide, CHRA emphasized several key priorities: prioritize community housing in all developments, with community housing organizations in a lead position. Set ambitious targets for the number of community housing units that significantly exceed current National Housing Strategy targets. Ensure delivery of shovel-ready projects already progressing through existing federal programs.

They also called for Build Canada Homes to eventually transfer ownership of funded developments to community housing organizations to strengthen the sector's permanent capacity, and to provide reliable, stable, long-term sources of capital to help community housing organizations plan for growth and scale up.

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The Broader Market Context

Build Canada Homes launched at a challenging moment for Canadian housing construction. Housing starts fell 17% in October to 232,765 units, less than half what CMHC estimates is needed. New home sales in the GTA were down 80% from the 10-year average. Just 53 condos sold in Toronto in September.

The agency is betting that factory-built and modular construction can help close that gap. But the prefab industry faces significant challenges, particularly around financing. Traditional construction financing doesn't work for modular homes because nothing is being built on site until the unit is nearly complete.

That's where Build Canada Homes' $25 billion in financing for prefabricated builders could make a real difference. If the agency can solve the financing problem that has plagued modular construction, it could unlock the scale needed to meaningfully impact housing supply.

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How Coldwell Banker Horizon Realty Can Help

At Coldwell Banker Horizon Realty, we understand that federal housing initiatives like Build Canada Homes affect real estate markets in complex ways. Whether you're a developer evaluating whether to submit a proposal, a homebuyer wondering how new affordable housing supply will affect your local market, or a homeowner assessing how these developments will impact your neighborhood, we provide the expertise and local knowledge you need.

Understanding how government programs interact with market dynamics requires professional guidance from people who track policy changes and their real-world implications.

Contact Coldwell Banker Horizon Realty today to discuss how Build Canada Homes and other federal housing initiatives are affecting your area and how we can help you navigate the changing landscape.

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The Bottom Line

Build Canada Homes' new proposal portal represents the federal government's most ambitious housing intervention in decades. With $13 billion in initial funding, $1 billion specifically for transitional housing, and a mandate to double housing construction, the agency has resources and political backing that previous programs lacked.

The focus on shovel-ready projects that can start within 12 months signals urgency. The emphasis on factory-built and modular construction shows commitment to innovative methods that can scale faster than traditional building. And the prioritization of transitional housing for vulnerable populations addresses immediate needs while longer-term projects ramp up.

But challenges remain. The modular construction industry lacks the factory capacity to scale quickly. Traditional construction financing doesn't work for prefab homes. And regulatory barriers, from municipal zoning to provincial building codes, slow everything down.

Whether Build Canada Homes can overcome those barriers depends on execution. Ana Bailão brings relevant experience from both government and development. The agency has substantial funding and political support. And the portal creates a streamlined process for partners to submit proposals.

The next few months will reveal whether Build Canada Homes can translate ambitious plans into actual homes. The $1 billion transitional housing fund should show results within weeks, according to Bailão. The six priority sites should break ground in 2026. And the portal will test whether shovel-ready projects exist at the scale the agency needs.

For Canada's housing crisis, Build Canada Homes represents either a meaningful solution or another well-funded program that delivers less than promised. The agency's success or failure will shape Canadian housing policy for the next decade.