Canada's national housing strategy remains 'under construction'

Canada’s National Housing Strategy (NHS), launched in 2017 with an $82 billion commitment, was designed to tackle the country’s housing crisis by building and repairing homes, supporting vulnerable populations, and improving affordability. Despite progress—over 296,000 units have been built or repaired as of late 2024—the strategy is still falling short of its goals, leaving many Canadians struggling to find affordable housing.

The NHS has faced several challenges, including rising construction costs, higher interest rates, and a rapidly growing population. These factors have made it difficult for developers and non-profits to finance projects, even with federal support. For instance, the National Housing Co-Investment Fund has been criticized for slow approvals and failing to meet affordability targets.

In response, the federal government has introduced new measures to boost housing supply. The 2024 budget added $15 billion to the Apartment Construction Loan Program, aiming to build over 30,000 new apartments. Additionally, a $6 billion Canada Housing Infrastructure Fund was launched to support essential infrastructure for new housing developments. 
To accelerate construction, the government is also leasing underused public land to developers, targeting the creation of 3.9 million homes by 2031. However, experts warn that this still falls short by 1.2 million units needed by 2030. The Housing Accelerator Fund, topped up with an additional $400 million, is helping municipalities cut red tape and fast-track home construction.

Despite these efforts, the housing crisis persists. Critics argue that the NHS needs a comprehensive overhaul to address current economic realities and ensure that affordable housing reaches those who need it most. Without significant changes, the strategy may continue to fall short of its objectives.

As Canada continues to grapple with housing affordability, the success of the NHS will depend on the government's ability to adapt and implement effective solutions. With the next federal election approaching, housing remains a critical issue for many Canadians seeking stable and affordable homes.