With home prices and rents rising due to high inflation, interest rates, and a growing immigrant population outpacing housing supply, Prime Minister Justin Trudeau has announced a new CAD $6 billion Canada Housing Infrastructure Fund. The fund aims to accelerate home construction through initiatives like providing CAD 1 billion to municipalities for critical housing infrastructure and allocating CAD 5 billion to provinces and territories to build middle-income housing. It is part of Trudeau's efforts to address the country's housing affordability crisis.
Prime Minister Justin Trudeau has launched a Canadian Dollar (CAD) 6 billion (approximately USD 4.42 billion) Canada Housing Infrastructure Fund to accelerate the construction and upgrading of housing across the country.
Canada is facing a housing affordability crisis as the rapidly growing immigrant population has far outstripped the available housing supply. This has led to rising home prices and rents. High inflation and interest rates at 22-year highs have also driven up mortgage costs.
The opposition has criticized the government for being too slow to build more homes, and the housing crisis has contributed to a decline in Trudeau's polling numbers.
The new fund will be part of the upcoming federal budget on April 16th. It aims to spur home construction through multiple initiatives. Approximately one-fifth of the funds will go to municipalities for critical housing infrastructure projects. The rest will be allocated to provinces and territories to build middle-income housing.
He noted that the Housing Accelerator Fund launched last year has helped cut red tape to enable 750,000 new homes over the next decade. As a result, the government will invest an additional CAD 400 million in the program.
Specifically, CAD 1 billion will go to municipalities for urgent infrastructure needs like water and sanitation. The remaining CAD 5 billion will support long-term priorities through agreements with provinces and territories.
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