OTTAWA — Internal government documents reveal the dire state of the Canadian housing market. A review by new Housing and Infrastructure Minister Gregor Robertson shows that high housing prices are weighing on the economy and making it difficult for people to afford affordable housing.

The documents also highlight the government’s failure to invest in affordable housing, with the shortage hitting newcomers and vulnerable groups hardest.

Government figures show the cost of building an average home in Canada has risen 58 per cent since 2020 and could rise further due to U.S. tariffs.

To that end, the federal government is creating a new agency called Build Canada Homes to accelerate the pace of affordable housing construction and encourage builders to use new technologies. Prime Minister Mark Carney has announced that the agency will officially launch in the coming days.

Source