Canada’s Bold Plan to Build Millions of New Homes Starts with Speed and Scale

Canada has announced one of its most ambitious housing agendas in history: a national commitment to build millions of homes faster than ever before. At the heart of the plan is a strategy that makes housing construction more affordable and scalable by leveraging new tax incentives, zoning reforms, and innovative construction methods. Housing and Infrastructure Canada has made it clear that the housing crisis will not be solved without full government collaboration across all levels.

One of the plan’s central pillars is a series of tax reforms to encourage private developers to build rental housing. Budget 2024 proposes an Accelerated Capital Cost Allowance for apartment construction, raising the rate from 4 to 10 percent. This change, combined with the removal of GST on student residences and expanded access to low-cost loans, is designed to kickstart more than 300,000 rental units over the next several years.

Canada is also increasing the annual limit for Canada Mortgage Bonds from $40 billion to $60 billion. This change will unlock financing for tens of thousands of additional apartment builds, as noted by Housing and Infrastructure Canada. With municipalities under pressure to streamline approval processes, the federal government is investing in tools and partnerships to reduce red tape and modernize permitting systems.

Innovation will play a key role in this effort. The plan includes $500 million in low-cost loans to support prefabricated and modular home construction, a $50 million technology fund for faster homebuilding solutions, and a standardized design catalogue to make approval and construction more efficient. These efforts will help deliver housing that is not only faster to build but also more climate resilient and energy efficient.

This national push, according to Housing and Infrastructure Canada, is modeled on successful postwar and baby boomer-era housing efforts. The country has done it before, and with the right coordination, it can do it again. Credit: Housing and Infrastructure Canada.