Canada’s Housing Sector Enters a New Phase With Laws and Funding to Speed Up Construction

By Tahani Elghazaly
Published June 20, 2026

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Canada’s housing sector is entering a new phase after the federal government announced that Bill C-20, the Build Canada Homes Act, has received Royal Assent. Ottawa says the law marks an important step in its plan to build more homes faster and improve housing affordability for Canadians.

The new legislation provides the legal framework to transform Build Canada Homes into a federal Crown corporation focused on building affordable homes across the country. According to the federal government, the change is intended to give the organization more operational independence and flexibility while keeping it accountable to Canadians.

The government says Build Canada Homes has already advanced six direct-build projects across the country and is involved in partnerships representing more than 11,000 housing units that are either underway or close to construction. The new law is meant to strengthen this federal role and move housing projects more quickly from planning to delivery.

The legislative move comes as Ottawa and British Columbia announced a major housing partnership worth nearly $1.6 billion over ten years, matched by the province for a total of up to $3.2 billion. The plan aims to reduce development charges for multi-unit housing by up to 50% in priority communities, with estimated savings of up to $40,000 per unit, while also expanding housing-related infrastructure such as water systems, wastewater systems, and local roads.

Ottawa also introduced legislation to provide a one-time transfer of $284 million to British Columbia to help reduce barriers to new housing construction. The measure is part of a broader effort to lower costs for builders and accelerate projects in communities facing strong housing pressure.

In a separate track, British Columbia said its partnership with the federal government through Build Canada Homes will secure $170 million in federal capital funding, while the province will commit up to $200 million in capital funding, plus operating support. The combined funding is expected to accelerate construction-ready projects and deliver more than 700 supportive and transitional homes across the province.

The timing is significant because Canada’s housing construction data remains mixed. The Canada Mortgage and Housing Corporation reported that the total monthly seasonally adjusted annual rate of housing starts fell 6% in May 2026 to 261,377 units, down from 278,380 units in April. Actual monthly housing starts were also down 5.2% year over year in centres with populations of 10,000 or more.

These figures show why governments are trying to speed up construction, but they also highlight the scale of the challenge. New laws and funding can help, but the real test will be whether projects can move faster through approvals, financing, labour shortages, and local infrastructure limits.

For families, renters, and first-time buyers, this does not mean an immediate drop in rents or home prices. However, it does signal a more aggressive federal approach to housing, combining legislation, public funding, and direct partnerships with provinces and local communities.