Canada finalizes contracts with cities to boost home construction

Posted on March 8, 2024   |  

The Canadian government has finalized 179 housing deals using the $4 billion housing accelerator fund.

Only one-third of the 544 applications received were successful in securing funding.

These agreements, set to last until 2026–27, aim to expedite 107,000 permits within the next 3 years and construct over 750,000 homes within 10 years.

Housing shortages in Canada are partly due to bureaucratic hurdles, slow permit processes, and high development fees at the municipal level.

Municipal approval timelines for housing projects in 2022 varied widely, ranging from three months to almost three years.

The housing accelerator fund incentivizes municipalities to revise bylaws and regulations to facilitate home construction.

Communities receive 25% of their funds upon signing and 25% annually thereafter upon meeting specified milestones.