On September 14, 2025, Prime Minister Mark Carney launched Build Canada Homes, a new federal agency to build affordable housing at scale, with an initial $13 billion. Ana Bailão was named its chief executive officer.
What the agency will do
- Focus mainly on non-market housing, from supportive and transitional homes to community housing and mixed-income projects with private builders.
- Take over Canada Lands Company, with access to 88 federal properties suitable for housing.
- Promote factory-built, modular and mass-timber construction, which the government says could cut timelines by up to 50% and costs by as much as 20%.
- Prioritize Canadian lumber and other Canadian materials.
First investments
- Six federal sites for 4,000 factory-built homes, with capacity for up to 45,000 units across the portfolio. The first sites are in Dartmouth, Longueuil, Ottawa, Toronto, Winnipeg and Edmonton.
- A $1.5 billion Canada Rental Protection Fund to help community groups buy at-risk rental buildings.
- $1 billion for transitional and supportive housing.
- Over 700 units with the Nunavut Housing Corporation.
What it means for Calgary
Calgary is not among the first six sites, but the agency said it will begin engaging with provinces, cities and builders on more projects this year. Its focus is non-market housing, so the direct effect on resale prices is likely to be small in the near term.
Why the agency was created
The government said that despite recent improvements in several cities, far too many Canadians, particularly young Canadians, are struggling to find homes they can afford. Build Canada Homes is part of a national effort to double housing construction, restore affordability and reduce homelessness. It will work with provinces, territories, municipalities and Indigenous communities on transitional and supportive housing, build deeply affordable and community housing for low-income households, and partner with private developers on affordable homes for the middle class.
Build Canada Homes funding announced September 14, 2025, $ billion
Land and construction methods
Moving Canada Lands Company under the new agency gives it access to 88 federal properties listed on the Canada Public Land Bank, covering 463 hectares, roughly the size of downtown Ottawa. Federal ministers will also be told to identify other suitable land owned by their departments. On construction, the agency will rely on bulk procurement and long-term financing to mainstream factory-built, modular and mass-timber methods. The government says these could cut building timelines by up to 50%, reduce costs by as much as 20% and lower construction emissions by about 20%.
Factory-built homes on federal land
Who leads it
Ana Bailão served for more than a decade on Toronto City Council, including as deputy mayor from 2017 to 2022 and as chair of its planning and housing committee. She led the creation of Housing Now, which uses city land to build housing. The government also said Budget 2025 would bring additional measures to lower costs for builders.
What it means for Calgary buyers and sellers
The agency is aimed at non-market and affordable housing, not at the resale market where most Calgary buyers and sellers operate. In the short term it is unlikely to change resale prices. Over time, more affordable rental and community housing could ease pressure on renters, and a stronger factory-built industry could help lower costs for builders. Calgary already has strong construction: CREB reported that record high new home starts over the past few years are adding supply.
Local angle
Edmonton is among the first six sites, so Alberta is part of the first wave. Calgary organizations and the City may seek projects as the agency begins talks with partners this year. Watch for federal land in the city that could be offered for housing.
About 30% of the more than 700 units planned with the Nunavut Housing Corporation are expected to be built off-site, using methods such as factory-built housing.
