Federal Government to Cut Housing Spending by Over 50%, Build Only 26,000 Homes: Budget Watchdog
Ottawa:Federal spending on housing programs is set to decline by more than half over the next four years, with the government’s flagship $13-billion housing initiative expected to deliver only 26,000 new homes, according to a new report from the Parliamentary Budget Officer (PBO).
The report examines Prime Minister Mark Carney’s newly created housing agency, Build Canada Homes, and assesses how it, along with other federal programs, will contribute to new home construction through 2029–30.
According to the PBO, federal housing spending will fall from $9.8 billion in 2025–26 to $4.3 billion annually by 2028–29, representing a sharp 56 per cent decrease.
The watchdog attributes the projected funding decline largely to the expiry of major programs, including the Housing Accelerator Fund, the Affordable Housing Fund, and the Canada Housing Benefit.
Housing advocates have warned that the significant reduction in federal investment could undermine efforts to address Canada’s growing housing shortage and affordability crisis.
