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Carney said the $13 billion will provide economic incentives for builders to build affordable homes and reduce affordable home construction costs.
The specific location of the home has not been announced yet, but Carney said they will be in Dartmouth, North Carolina, Queens, Quebec, Ottawa, Toronto, Winnipeg and Edmonton.
Construction is expected to begin next year, a senior government official said.
“The core challenge facing the housing market is that it’s too difficult to build,” Carney said at a press conference in Nepal.
Carney said he had asked his colleagues to identify the land owned by government departments that could be used for housing, which would be added to the 88 properties list of Land Bank of Canada.
This will “help reduce the cost of builders and, most importantly, lower rents and new home prices for Canadian families,” he said.
Carney said the new agency will also speed up the licensing process by providing a “green light” for bulk projects.
The government’s lease protection fund can help community housing groups purchase private rental units to make them affordable and will continue to build homes in Canada.
The agency uses the Canadian mortgage and housing company’s “affordable housing” definition, which costs less than 30% of household income before tax.
The new agency will also include a $1 billion transitional housing project fund designed to help homeless people.
The construction of Canadian homes is intended to be the main body responsible for affordable housing projects of the federal government.
“Building Canadian homes will prioritize cost-effective and modern construction methods, including factory construction, modularity and large-scale timber,” Carney said.
He said factory-built houses can be mass-produced in a controlled environment and assembled within a few days, enabling construction in winter.
This will include a partnership with Nunavut Housing Corporation to build some homes on site. Carney said the partnership with Canadian construction families is expected to build 700 homes, about 30% of which will be built on site and shipped to Nunavut.
He said the agency will also adopt the recently announced “Canada Buy” policy by the federal government, which aims to prioritize the use of Canadian materials and inputs to help face U.S. tariffs to help strengthen the economy.
The agency’s CEO, Ana Bailão, is a Toronto City Councilman and Deputy Mayor, who has served on the Toronto Community Housing Board.
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Last modified: September 14, 2025
