Canada’s Housing Strategy in 2026: What the Federal Government Is Doing

Housing affordability remains one of Canada’s biggest challenges. By 2026, the federal government’s approach to housing is less about a single new plan and more about scaling up multi-year strategies already in motion, with a strong focus on increasing supply, speeding up construction, and protecting affordability.

This post breaks down what Canada’s housing strategy looks like heading into 2026, and what Canadians can realistically expect. 

 The Big Picture: Long-Term, Not One-Off Solutions

Canada does not have a standalone “Housing Strategy for 2026.” Instead, housing policy in 2026 is shaped by long-term federal commitments, especially the National Housing Strategy (NHS) and newer supply-focused initiatives announced in recent federal budgets.

The federal government’s central goal is clear:

build significantly more homes by the end of the decade, while ensuring a portion of those homes remain affordable.

Most programs running in 2026 are designed to last through 2030–2031, reflecting the scale and persistence of the housing shortage.

 1. The National Housing Strategy Still Anchors Policy

Launched in 2017, the National Housing Strategy remains the backbone of federal housing policy in 2026.

Key objectives include:

• Increasing affordable housing supply

• Repairing and preserving existing housing

• Reducing homelessness

• Supporting vulnerable populations

Billions of dollars committed under the NHS continue to flow through 2026 via programs delivered mainly by Canada Mortgage and Housing Corporation (CMHC).

Rather than winding down, NHS funding is now being layered with new supply-focused initiatives, responding to population growth and rising housing demand.

 2. A Strong Shift Toward Building More Homes

By 2026, federal housing policy is heavily oriented toward supply expansion.

The government’s housing plans aim to unlock millions of additional homes by 2031, and several programs active in 2026 support this goal:

·         Apartment Construction Loan Program

Offers low-cost federal loans to encourage rental apartment construction, especially in high-demand cities.

·         Housing Accelerator Fund

Incentivizes provinces and municipalities to speed up approvals, modernize zoning rules, and allow denser housing.

·         Public Lands for Homes

Uses surplus or underutilized federal land to support new housing developments, often with affordability requirements.

Together, these programs reflect a major policy shift: housing supply is no longer seen as solely a provincial or municipal issue.

 3. Build Canada Homes: A New Federal Role in Housing

One of the most significant developments affecting 2026 is the creation of Build Canada Homes, a new federal housing development agency announced in recent budgets.

Its mandate includes:

·         Acting as a national housing builder and financier

·         Supporting large-scale and affordable housing projects

·         Encouraging innovative construction methods such as prefabrication

By 2026, Build Canada Homes is expected to be fully operational, with multi-year funding extending well beyond that year. This marks a notable return of the federal government to a more direct role in housing development.

 4. Continued Support for Affordable and Community Housing

While increasing supply is a priority, affordability remains central to the strategy.

Programs continuing through 2026 include:

• Affordable Housing Fund, supporting below-market rental housing

• Rapid Housing Initiative, focused on people facing homelessness or severe housing need

• Funding for repairs and preservation of existing affordable housing

These initiatives aim to ensure that new housing construction does not only benefit higher-income households.

 5. Cutting Red Tape and Speeding Up Construction

A recurring theme in the 2026 strategy is reducing delays.

The federal government increasingly ties funding to:

• Faster permitting and approvals

• Allowing higher density near transit

• Updating zoning rules to permit multi-unit housing

While municipalities control land-use decisions, federal funding is being used as leverage to encourage reform.

 What This Means for 2026

By 2026, Canada’s housing strategy can be summarized in five key themes:

• Build more homes, faster

• Use federal funding to push local reform

• Expand rental and multi-unit housing

• Protect affordability for vulnerable groups

• Treat housing as a long-term national priority

The real test will be execution. Many programs are already funded and underway, but housing outcomes depend on coordination across federal, provincial, and municipal governments.

 Final Thoughts

Canada’s housing strategy in 2026 is less about bold new announcements and more about delivery at scale. If the federal government succeeds in turning funding, land, and policy incentives into actual homes, 2026 could mark a turning point in addressing the housing shortage.

If not, affordability pressures are likely to persist.