Building Momentum: The Latest in Canadian Construction, Housing & Industry Support

Toronto, ON – June 22, 2026

The latest developments impacting Canada’s construction sector, including updates on Build Canada Homes, CMHC, new housing starts, interest rates, government initiatives, and how GTA Strategies can support your business.

What’s New: Build Canada Homes & CMHC

Build Canada Homes

• Launched in September 2025, this federal agency is driving affordable housing by leveraging public land, flexible financing, and modern construction methods.
• Initial capitalization of $13 billion is unlocking stalled projects, attracting private investment, and scaling up innovative building techniques.
• The agency is partnering with provinces and municipalities to deliver deeply affordable, supportive, and transitional housing, with a focus on rapid delivery and community impact.

CMHC & Housing Starts

• CMHC data shows a national drop in housing starts for May 2026 (down 5% from 2025), with Ontario seeing a 3% dip month-over-month but an 18% increase year-over-year.
• Despite improvements, Ontario is behind on its ambitious target of 1.5 million new homes by 2031, having achieved only 15% of its 2026 goal so far.
• Multi-family building permits fell 8% in April, reflecting a broader slowdown in residential construction, especially in British Columbia and Ontario.

Interest Rates & Industry Impact

• While interest rates have recently fallen, the expected rebound in housing starts has not materialized as strongly as hoped. Developers cite high construction costs, regulatory delays, and labour shortages as ongoing challenges.
• The construction industry faces a critical labour shortage, with a projected need for 380,500 new workers by 2034 due to retirements and increased demand for housing and infrastructure.

Local & Territorial Updates

• Ontario: New incentives for homebuyers and reduced development charges are spurring demand, but the pace of new builds remains below targets.
• British Columbia: A landmark federal-provincial partnership will invest over $5 billion in local infrastructure, cut development charges by up to 50% in priority communities, and convert 2,200 vacant condos into affordable homes.
• Quebec: Over $200 million is being invested in the Université de Montréal Science Complex, supporting advanced research and construction jobs.
• Prince Edward Island: Joint investments in infrastructure are enabling new housing developments in communities like Alberton and Wellington.
• Hamilton, ON: Non-profit coalitions are leveraging federal funding to deliver thousands of affordable and supportive housing units.

Government Announcements & Assistance

• The federal Build Communities Strong Fund is investing $51 billion over 10 years in infrastructure to support housing, health, transit, and climate adaptation.
• New programs are rewarding municipalities that exceed housing targets, such as Kitchener, ON, which received $8 million for surpassing its goals.
• The Canada Housing Infrastructure Fund is supporting core infrastructure upgrades to enable higher-density housing.
• Public-private partnerships are being encouraged to accelerate purpose-built student accommodation and affordable housing.

CUSMA (Canada-United States-Mexico Agreement) Effects

While the documents do not provide specific recent impacts of CUSMA on construction, the agreement continues to facilitate cross-border trade in construction materials and services, supporting supply chains and market access for Canadian firms.

How GTA Strategies Can Assist

GTA Strategies is positioned to help your organization navigate this evolving landscape by:

• Advising on Funding & Incentives: Identifying and securing federal, provincial, and municipal grants, loans, and incentives for housing and infrastructure projects.
• Regulatory Navigation: Guiding clients through new development charge reductions, HST relief, and streamlined approval processes.
• Labour Solutions: Connecting you with workforce training programs and strategies to address skilled labour shortages.
• Project Delivery: Supporting public-private partnerships, innovative construction methods, and compliance with new housing policies.
• Market Intelligence: Providing up-to-date analysis on housing starts, market trends, and policy changes affecting your business.

Please reach out to GTA Strategies for tailored support as you plan and deliver your next project.