Carney unveils signature housing plan he says will double pace of home building in Canada
Liberal Leader Mark Carney has unveiled a bold and ambitious housing policy that aims to address the housing crisis in Canada by doubling the number of homes built annually to nearly 500,000. During a campaign stop in Vaughan, Ont., Carney outlined his vision for a new approach to housing that focuses on building faster, smarter, and more affordably.
The centerpiece of Carney’s plan is the creation of Build Canada Homes (BCH), a new entity that will act as a developer overseeing the construction of affordable housing across the country. Described as a “lean, mission-driven organization,” BCH will provide tens of billions in financing for new affordable housing projects. Carney emphasized that BCH will operate independently from the Canada Mortgage and Housing Corporation (CMHC) in order to maximize efficiency and effectiveness.
To kickstart affordable home building, BCH will provide $25 billion in debt financing and $1 billion in equity financing to Canadian prefabricated home builders. Additionally, BCH will issue bulk orders of housing units to Canadian modular and prefabricated home builders to create sustained demand.
In addition to financing, BCH will provide $10 billion in low-cost financing and grants for affordable home building projects. This includes long-term, fixed-rate financing for affordable homes as well as funding for deeply affordable housing, supportive housing, Indigenous housing, and shelters. Part of the funding will also be used to build housing for students and seniors in partnership with provinces and territories.
Carney’s plan also includes proposals to make the existing housing market work better. This includes cutting municipal development charges in half for five years, reducing tax liability for owners of existing structures when converting them into affordable housing, and reintroducing the Multiple Unit Rental Building (MURB) cost allowance.
Furthermore, Carney plans to boost the Housing Accelerator Fund, which allocates $4 billion in funding to streamline land-use planning and development approvals to build 100,000 more housing units across the country.
Carney emphasized the need for Canada to get back into the home building business, drawing parallels to the post-World War II housing crisis that was successfully addressed through government intervention. He expressed confidence that Canada can overcome the current housing crisis by building its way out of it.
In contrast, Conservative Leader Pierre Poilievre’s housing plan focuses on incentivizing municipalities to increase the number of homes built each year through federal grants and bonuses. Meanwhile, NDP Leader Jagmeet Singh’s housing proposals include banning corporate landlords from buying affordable homes and setting aside federal Crown land for rent-controlled housing.
Overall, Carney’s housing policy represents a comprehensive and innovative approach to tackling the housing crisis in Canada, with a strong emphasis on affordability, sustainability, and efficiency. If implemented, it has the potential to significantly impact the housing market and improve access to affordable housing for Canadians across the country.
