Blog post #01
New home construction on the rise in canada
At the moment in Canada, we are experiencing a housing supply shortage. To keep up with the growing population, some organizations estimate that Canada will need to build around 3.5 million new homes in the next decade to keep up with the demand.
In April 2022, the Government of Canada stated in their Budget 2022 publication that “…Canada will need to double our current rate of new construction over the next decade.” This initiative is driven by one main goal: to make housing more affordable for Canadians.
And while annual construction has increased steadily over the past few years, it is not enough to keep up with the demand.
To move towards this goal, the federal government is launching a few incentives:
The New Housing Accelerator Fund
Encourage cities and towns to build new homes by providing incentives like annual per-door incentives and up-front funding for investments in municipal housing planning.
Reforming the Rental Construction Financing Initiative
Provide non-repayable loan options to developers who build highly affordable and energy efficient units
Greener Construction in Housing and Buildings
Provide $183.2 million over seven years to the National Research Council to support innovations like the development of lower-carbon building materials and more energy efficient processes for building homes
What does this mean for new home developers?
There is now a huge opportunity to build new homes and better the lives of Canadians at the same time. By tapping into some of the federal government incentive programs available, developers in major cities and rural areas alike could be expecting a lot more business and brand awareness from the community.