Canada Creates Federal Agency to Build Affordable Housing

Canadian Prime Minister Mark Carney announced on Sunday the creation of a new federal agency dedicated to building affordable housing. The initiative will start with C$13 billion in initial funding. The new body, called Build Canada Homes, is set to become a key instrument in tackling the housing crisis.

“We are facing a real housing crisis,” Carney said in Nepean, Ontario. “And it will take joint efforts from all levels of government and society to overcome it.”

The agency will construct homes for low-income families and partner with private developers to deliver projects aimed at the middle class. The ruling Liberal Party has pledged to ramp up construction, improve affordability, and reduce homelessness.

Carney emphasized that the agency will help lower risks for developers, cut upfront costs, and leverage federal lands for housing projects. He added that this is not just a social program but also part of a broader strategy to diversify Canada’s economy, which has been hit by the U.S.-led tariff war.

“We are building a more resilient and diverse economy,” Carney said. “But the consequences of tariffs are already clear: next year’s budget deficit will be much higher than last year’s.”

Forecasts show that the 2025/26 deficit could reach C$62.3 billion, significantly higher than previous expectations.