Ottawa’s Housing Revolution Update – May 26

Double the Pace, Rising Sales, and What’s Next for Builders

Toronto, ON – May 23, 2026

Canada’s housing sector is at a pivotal moment. Ottawa remains committed to doubling the pace of home construction over the next decade, despite ongoing headwinds. This ambitious pledge is backed by major investments, new policies, and a focus on  innovation—but also faces significant challenges and opportunities for industry leaders like you.

Federal Pledge: Doubling Construction Pace

• Ottawa’s Commitment:The federal government, under Prime Minister Mark  Carney, is investing billions to double home building, aiming to restore  affordability and meet the needs of a growing population.
• Build Canada Homes (BCH): This new Crown corporation is central to the  strategy, with $13 billion in initial funding to accelerate deeply affordable and  non-market housing, leverage public land, and deploy modern construction methods (modular, prefabricated, mass timber).
• Building Permits: Recent data shows a rebound in building permits and housing starts, with April’s six -month trend up 3.2% to 256,777 units. However, the pace remains below what’s needed to close the supply gap.

Market Trends: Condo Investors, Sales, and Buyer Activity

• Return of Condo Investors: After a period of retreat, institutional investors are returning to Toronto’s condo market, buying up surplus inventory and signaling renewed confidence. This could stabilize developers and prompt a new wave of pre-construction activity.
• Sales and Buyer Sentiment: Home sales are slowly rising, with buyers returning cautiously. In the Toronto area, sales rose 7% year- over-year in April, though prices remain below last year’s levels. Buyers are more selective and price-sensitive, but optimism is building.
• Young Canadians’ Strategies: Many young buyers are turning to recreational properties and cottages as affordable entry points, building equity outside major  urban centres.

Challenges for Build Canada Homes (BCH)

• Structural Barriers: BCH must address restrictive land use rules, slow municipal approvals, high development charges, and fragmented building codes. Modular and modern construction methods offer promise but require regulatory and   financing reforms to scale.
• Transparency and Targets: Industry stakeholders are calling for BCH to publish clear, measurable goals—annual starts, cost per unit, and private capital leveraged—to build trust and drive accountability.
• Affordability Focus: BCH is urged to maintain cost discipline, acquire unsold  condos for affordable housing, and partner with non-profits and municipalities to maximize impact.

Policy and Program Considerations

• Reconsidering the BUILD Act: Recent polling and municipal feedback highlight  the need for local flexibility and collaboration, rather than top- down mandates. Industry voices support responsible growth that respects community planning.
• Retrofit Program Stability: Canada needs a stable, long- term retrofit incentive program to support energy efficiency upgrades, create skilled jobs, and provide certainty for contractors and homeowners.
• Net-Zero and Battery Storage: Ontario’s completion of one of Canada’s largest battery storage projects and the development of net -zero villages (e.g., Watercolour in Westport) showcase the integration of clean energy and  sustainable community design.

Industry Highlights and Regional News

• CHBA Awards: The Canadian Home Builders’ Association continues to recognize excellence and innovation across the sector.
• Regional Initiatives: Notable projects include affordable housing in North Bay, modular builds  in the Arctic, and new developments in Yukon, Nova Scotia, and Hamilton. Municipalities like Sudbury and Saint John are leveraging federal  funds to cut red tape and accelerate approvals.
• Permits and Approvals: Building permits are up, and municipalities are rewarded for innovative solutions that speed up housing delivery.

How GTA Strategies Can Help

The path ahead is challenging, but with the right strategies and partnerships, the construction industry can lead Canada’s housing transformation. GTA Strategies stands ready to help you navigate policy shifts, accelerate projects, andseize new opportunities in this dynamic market.