Builders talk latest government proposal
Canada’s latest effort to ease its housing crisis involves expanding a public lands bank by 56 properties – a move that homebuilders say is a positive step, but far from a complete solution.
The initiative is part of a broader strategy to unlock underused federal lands for residential development to help alleviate the housing affordability crisis gripping the nation. The newly added properties, including former military bases, Canada Post sites, and federal office buildings, will be offered to developers on long-term leases rather than sold outright.
“Making public lands available for home construction is going to reduce the cost of construction and in turn reduce the cost of living,” housing minister Sean Fraser said during the announcement with public services and procurement minister Jean-Yves Duclos on Sunday in Halifax.
Duclos emphasized the government's intent to keep these lands in public ownership while addressing housing needs.
“By partnering with the housing sector and communities, and utilizing long-term leases rather than sales, we are ensuring that public lands stay public, while also providing the affordable housing that Canadians desperately need,” he said.
The expanded Canada Public Land Bank now includes 305 hectares across 28 municipalities in seven provinces. The government expects to add more properties as it continues to review underused or vacant federal lands.
Homebuilders and industry associations were quick to point out that while this is a step in the right direction, it doesn’t address the full scope of the housing crisis.
Justin Sherwood, senior vice president of the Building Industry and Land Development Association (BILD), welcomed the announcement but stressed that more comprehensive measures are needed.
“Land is a critical ingredient in addressing the current housing supply and affordability crisis facing the GTA and many Canadian cities – particularly land that is already serviced or that can be readily serviced with housing supportive infrastructure. Yesterday’s announcement is a welcome step in the right direction,” said Sherwood.
Developers like Nicholas Gefucia of EllisDon Community Builders praised the initiative, noting that the long-term lease model could enable a more focused and sustainable approach to development.
“It is encouraging that the government is now embracing delivery models that have been successfully implemented all over Canada to deliver critical social infrastructure,” Gefucia said. “Long-term leases could allow a more focused approach to how land is developed and operated.”
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The Canadian Home Builders’ Association (CHBA), while supportive of the initiative, also stressed the need for a broader strategy.
A CHBA spokesperson highlighted that while releasing public lands is crucial, it must be part of a comprehensive plan that includes infrastructure development, streamlined regulations, and effective subsidies.
“CHBA has called for the release of public lands for housing development, and smart means to subsidize affordable housing without driving up the cost of market-rate housing. However, land leasing rather than sales, while potentially innovative, will also need to be carefully crafted to ensure success,” the spokesperson told the Financial Post.
The government’s plan to collaborate with municipalities and housing sector stakeholders aims to build homes on every suitable federal site.
Gefucia highlighted the importance of a collaborative approach, bringing together governments, developers, and community stakeholders from the outset of each project.
“I am especially encouraged by the prospect of a development approach that allows governments, developers, operators, and other community stakeholders to be at the table at the beginning of a project to ensure sustainable and responsible development,” he said.
“[This] can allow non-profit organizations to optimize their operating capacity, while top-tier constructors can truly perform to scale to build housing that Canada desperately needs to regain affordability levels.”
Canada Lands Company, in partnership with Canada Mortgage and Housing Corporation (CMHC), has already begun soliciting proposals from housing providers for some of the properties in major cities. These properties will be offered on long-term leases at discounted rates.
Additionally, five properties – former military bases in major cities and a former National Film Board site – have already moved into the development phase.
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