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Canadian Prime Minister Mark Carney has created a new endeavor designed to expand affordable housing opportunities, while new data shows Canadian home sales are rebounding.

According to a statement from Carney’s office, the newly launched Build Canada Homes is a federal agency that will collaborate with provinces, territories, municipalities, and Indigenous communities to build “deeply affordable and community housing for low-income households, and partner with private market developers to build affordable homes for the Canadian middle class.” This new endeavor will also seek to “leverage public lands, offer flexible financial incentives, attract private capital, facilitate large portfolio projects, and support modern manufacturers to build the homes that Canadians need.”

The primary focus for Build Canada Homes will be on non-market housing, with the multiple goals of doubling housing construction, expanding affordability, and reducing homelessness.

Canada’s government will capitalize Build Canada Homes with an initial $13 billion and will transfer public lands – including 88 federal properties – under the Canada Lands Company to the new agency’s portfolio. The new construction will also prioritize factory-built housing made with low-carbon materials, low-carbon technologies, and the use of Canadian lumber and other Canadian materials will be emphasized.

Furthermore, existing affordable rental housing will be protected with the $1.5 billion Canada Rental Protection Fund launched under Build Canada Homes, while an additional $1 billion will be deployed to build transitional and supportive housing for people who are homeless or at risk of homelessness.

Ana Bailão, a former deputy mayor of Toronto, was named CEO of Build Canada Homes. She most recently served as the head of affordable housing and public affairs with the private developer Dream Unlimited Corporation.

“Canada’s new government is relentlessly focused on bringing down housing costs. Central to that mission is rapidly scaling up the supply of homes,” said Carney. “Build Canada Homes will transform the way government works with the private sector to build. We will create an entirely new housing industry using Canadian technology, Canadian workers, and Canadian resources – and give builders the tools they need to build more, build sustainably, and build at scale.”

While the government puts a new focus on affordable housing, the Canadian Real Estate Association (CREA) reports the number of home sales recorded over Canadian MLS Systems edged up 1.1% on a month-over-month basis last month. This marked the best month of August for sales since 2021 and the fifth straight monthly increase in activity. The number of newly listed properties climbed 2.6% on a month-over-month basis while a total of 195,453 properties were listed for sale on all Canadian MLS Systems at the end of August, up 8.8% from one year earlier.

The CREA also noted the non-seasonally adjusted national average home price was $664,078 in August, up 1.8% from one year before.

“August continued the trend of rising sales in many markets across the country, and while momentum slowed compared to July, much of that is simply a reflection of the time of year,” said Valérie Paquin, CREA chairperson. “Now that we are on the other side of Labor Day, new listings are flooding onto the market.”

“Activity has continued to gradually pick up steam over the last five months, but the experience from a year ago suggests that trend could accelerate this fall,” added Shaun Cathcart, CREA’s senior economist. “Part of what drives sales at different points in the year is the availability of a lot of fresh property listings for buyers to buy. For the fall market, that always happens right at the beginning of September, and this year was no exception. If last year is any kind of guide, then there is the potential that sales could really pick up in the next month or so depending on how many buyers are drawn off the sidelines, particularly if we see a September rate cut by the Bank of Canada.”