Canada is tackling its housing shortage by leasing public land to construct affordable housing, a strategic initiative to facilitate the development of nearly 3.9 million homes by 2031.
The government has identified underutilized land for this purpose. Potential sites include abandoned industrial parks, defunct government company locations, and schools experiencing low enrollment.
According to the Canada Mortgage and Housing Corp, the plan still needs 1.2 million units by 2030 despite these efforts.
The Liberal government has recently introduced multiple measures to mitigate the housing crisis. These initiatives are expected to be a focal point in the upcoming federal budget.
This surge of measures comes in response to rising housing and rental prices. The price increase has impacted Trudeau’s Liberals, now trailing the Conservatives in polls ahead of the mandatory October 2025 election.
During a press briefing in Vaughan, Ontario, Trudeau expressed confidence in the plan, stating, “It is a plan that is going to make a difference in the lives of Canadians.”
Housing Minister Sean Fraser outlined additional strategies, including modifications to the capital-cost tax structure. These changes are designed to motivate institutional builders to increase housing production. The government also plans to extend low-cost loans and address mortgage fraud, which escalates housing costs.
Mike Moffatt from the Task Force for Housing and Climate, an independent think tank, noted that achieving the 3.9 million homes target would require an investment close to C$2 trillion ($1.5 trillion).
Moffatt told the Canadian Broadcasting Corp., “We are going to need to see more math and more (the cost) in the budget. But I think overall, we have seen some pretty significant reforms in today’s package.”
Rapid growth in Canada’s immigrant population has exacerbated the housing deficit, inflation, and high-interest rates.
In Canada, housing is primarily managed by the 10 provinces and major municipalities. Although the federal government does not directly engage in construction, it influences the sector through policy measures and funding.
