Canada announces new federal agency to build affordable housing

MONTREAL: Canadian Prime Minister Mark Carney on Sunday announced a new federal agency supported by an initial C$13 billion ($9.39 billion) in capitalization to build affordable housing, following campaign promises to bolster residential construction.

The agency, Build Canada Homes, will construct affordable housing for low-income households and work with private developers to build homes aimed at the middle class, Carney told reporters in Nepean, Ontario.

Carney’s ruling Liberal party has pledged to improve affordability and reduce homelessness, while increasing home construction after high housing costs hurt the approval rating of his Liberal predecessor, former Prime Minister Justin Trudeau.

“We’re in a housing crisis,” Carney said. “And it’s going to take all hands on deck to get us out of it.”

Carney said the agency will reduce the risk of building in the country by helping reduce the upfront costs of building and leveraging public lands for housing.

The former central banker has been announcing projects recently as part of a campaign to diversify the economy and reduce Canada’s reliance on the United States as tariffs bite.

“We’re transforming Canada’s economy from one that had become too reliant on a single trading partner to an economy that’s more diverse,” Carney said.