Government Funding, Unsold Condos & New Housing Rules: Critical Insights for Construction Firms

Toronto, ON – July 5, 2026

We would like to share important updates on Canada’s evolving housing landscape and recent government initiatives.

Federal & Provincial Housing Initiatives

Build Canada Homes (BCH) & CMHC

• BCH, a new federal agency with $13 billion in initial capital, is leading direct-build developments on public lands and catalyzing modular housing. CMHC continues to support the sector with innovative programs like the Housing Design Catalogue, offering over 50 pre-approved low-rise housing plans to accelerate approvals and reduce costs.
• The Housing Accelerator Fund (HAF), administered by CMHC, is delivering measurable results by expediting municipal approvals, unlocking public land, and supporting zoning reforms. For example, St. Catharines exceeded its HAF targets, issuing over 1,000 new dwelling permits in a year.

Government Assistance & Funding

• The Build Communities Strong Fund is investing $51 billion in infrastructure, with at least 10% earmarked for Indigenous communities. The Canada Housing Infrastructure Fund (CHIF) is also supporting core infrastructure to enable new builds, such as the $9.1 million investment in Souris, PEI.
• Local and provincial governments are leveraging these funds to expand water, wastewater,and stormwater systems. streamline approvals, and incentivize affordable housing developments.

Market Challenges & Policy Debates

Unsold Condos & Market Interventions: Despite new builds, major cities face a glut of unsold condos. The federal and BC governments plan to purchase over 2,200 vacant units and convert them to affordable housing, aiming to stabilize the market and offer rent-to-own options. However, critics argue this may delay necessary price corrections and prioritize developer interests over affordability.

Bias Against Renters: Recent legislation, including the Build Canada Homes Act, has been criticized for favouring homeowners and landlords. Advocates highlight a lack of renter representation in Parliament and missed opportunities to strengthen tenant protections or introduce a national Renter Bill of Rights.

Delivery Challenges: While new agencies like BCH promise speed, experts caution that creating parallel organizations may not resolve longstanding delivery issues. Sustainable reform requires modernizing existing government operations, not just adding new layers.

Ontario’s Housing Target Shortfall: Ontario’s government has admitted it will not meet its goal of building 1.5 million homes by 2031, citing slow housing starts and insufficient time for Indigenous consultation. The Grater Toronto Area , in particular, faces a significant inventory of unsold condos and declining new starts.

Indigenous & Local Initiatives

• At least 10% of federal infrastructure funding is dedicated to Indigenous communities, supporting projects like the White Rock Pier reconstruction and regional wastewater upgrades.
• Innovative programs, such as student-built tiny homes for First Nations and partnerships for long-term care homes, are addressing both housing and skills development in Indigenous communities.

How GTA Strategies Can Assist

GTA Strategies specializes in helping construction and development firms:

Access Government Funding

• Identify and secure federal, provincial, and municipal grants, including BCH, HAF, and infrastructure funds.
• Navigate application processes and compliance requirements, including those for Indigenous-focused streams.

Address Municipal Issues

• Advise on zoning, permitting, and leveraging public land for new builds.
• Support engagement with local governments to streamline approvals and maximize incentives.

The current environment presents both challenges and opportunities. With the right strategy and support, your organization can capitalize on new funding streams, adapt to policy changes, and contribute to building a more affordable, inclusive housing market.
Please reach out to GTA Strategies to discuss how we can support your next project.