Ottawa wants to get banks, pension funds involved in affordable housing: minister – Global News

Federal Initiative to Accelerate Affordable Housing Development in Canada

Introduction

The federal housing minister, Gregor Robertson, has announced plans to enhance the pace of homebuilding in provinces where progress has been slow. This initiative aims to engage developers actively in Ottawa’s affordable housing projects, aligning with the United Nations Sustainable Development Goals (SDGs), particularly SDG 11: Sustainable Cities and Communities, and SDG 1: No Poverty.

Build Canada Homes Agency and Financing Strategy

Launched in September with an initial capitalization of $13 billion, the Build Canada Homes agency is central to this strategy. The agency focuses on scaling up affordable or “non-market” housing projects, which are supported by government or other sources to offer below-market rental rates.

Minister Robertson highlighted efforts to involve Canadian banks and pension funds in financing affordable housing, aiming to mobilize private capital by reducing investment risks. This approach supports SDG 17: Partnerships for the Goals, fostering collaboration between government and financial institutions.

Focus on Vulnerable Populations and Mixed Developments

Emphasizing the importance of addressing housing affordability for vulnerable populations, Robertson stated that the priority is to deliver affordable housing as a critical component of improving overall affordability in Canada.

Mixed-use developments, combining affordable units with market-rate housing, are being promoted to stimulate activity across different price levels. An example is the 540-unit Arbo development in Toronto, which will include at least 40% affordable housing upon completion.

Challenges and Market Dynamics

Despite a 5.6% increase in housing starts nationwide in 2025, driven by Alberta and Quebec, provinces like Ontario and British Columbia experienced declines. The Canada Mortgage and Housing Corporation (CMHC) reported strong momentum in spring and summer, which stalled in the fall.

Robertson acknowledged that private sector construction, influenced by market conditions such as interest rates and material costs, will be essential to meeting homebuilding targets. The government’s role is to “crowd in” investment and support affordable housing projects when market incentives are insufficient.

Strategic Approach to Housing Cycles

1. Utilize Build Canada Homes to engage builders in affordable housing during market slowdowns.
2. Accelerate approvals and construction to avoid missing windows of opportunity for affordable supply expansion.
3. Maintain a nimble approach to program implementation to respond effectively to market fluctuations.

This strategy aligns with SDG 8: Decent Work and Economic Growth, by aiming to create employment opportunities within the housing sector while addressing social needs.

Stakeholder Engagement and Future Outlook

• Build Canada Homes has received 450 applications from provinces, community housing groups, and private developers.
• Efforts are underway to attract capital from Canadian banks and pension funds by de-risking affordable housing investments.
• Collaboration with former municipal leaders and housing experts is ongoing to enhance the agency’s effectiveness.

Experts note challenges in aligning profit-driven financial institutions with non-profit affordable housing goals, highlighting the need for innovative mechanisms to incentivize investment.

Conclusion

The federal government’s renewed focus on affordable housing development through Build Canada Homes represents a significant step toward achieving SDG 11 and SDG 1 by providing safe, affordable, and sustainable housing. By fostering partnerships and leveraging private sector involvement, Canada aims to address housing affordability challenges while promoting inclusive economic growth and sustainable urban development.

1. Sustainable Development Goals (SDGs) Addressed or Connected

1. SDG 1: No Poverty
   • The article discusses affordable housing initiatives aimed at helping vulnerable populations, which directly relates to reducing poverty by providing access to affordable living conditions.
2. SDG 11: Sustainable Cities and Communities
   • The focus on increasing the pace of homebuilding, especially affordable and non-market housing, supports the creation of inclusive, safe, resilient, and sustainable human settlements.
   • Mixed developments with affordable and market-rate units contribute to sustainable urban development.
3. SDG 17: Partnerships for the Goals
   • The article highlights collaboration between federal government, provinces, private sector developers, banks, and pension funds to finance and build affordable housing, reflecting multi-stakeholder partnerships.

2. Specific Targets Under Identified SDGs

1. SDG 1: No Poverty
   • Target 1.4: By 2030, ensure that all men and women, particularly the poor and vulnerable, have equal rights to economic resources, including access to basic services such as affordable housing.
2. SDG 11: Sustainable Cities and Communities
   • Target 11.1: By 2030, ensure access for all to adequate, safe and affordable housing and basic services and upgrade slums.
   • Target 11.a: Support positive economic, social and environmental links between urban, peri-urban and rural areas by strengthening national and regional development planning.
3. SDG 17: Partnerships for the Goals
   • Target 17.16: Enhance the global partnership for sustainable development, complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology and financial resources.
   • Target 17.3: Mobilize additional financial resources for developing countries from multiple sources, which can be linked to attracting capital from banks and pension funds for affordable housing.

3. Indicators Mentioned or Implied to Measure Progress

1. Housing Starts and Construction Pace
   • The article mentions housing starts increased by 5.6% nationally in 2025, with regional variations. This indicator measures the number of new residential construction projects begun, reflecting progress toward increasing affordable housing supply.
2. Proportion of Affordable Housing Units
   • The Arbo development in Toronto is cited as having at least 40% affordable housing units, implying the use of the percentage of affordable units in new developments as an indicator.
3. Number of Applications and Projects Approved
   • Build Canada Homes has received 450 applications from various proponents, which can be used as an indicator of engagement and pipeline development for affordable housing projects.
4. Financial Investment and Capital Mobilization
   • The $13 billion capitalization of Build Canada Homes and efforts to attract investment from banks and pension funds suggest indicators related to the volume of financial resources mobilized for affordable housing.

4. Table of SDGs, Targets, and Indicators

Source: globalnews.ca