Liberals reassert goal to double homebuilding pace after target omitted from budget

OTTAWA · The federal government says it remains committed to doubling the pace of home construction, a target that did not appear in Budget 2026. The budget document, released last week, omitted the original pledge introduced in the Liberals' 2025 election platform. When asked if the goal was being abandoned, Housing Minister Gregor Robertson's office referred to a statement from May confirming the government was still "working toward doubling homebuilding over the next decade." The budget instead details a new plan to triple non-market housing construction to 24,000 starts annually over the coming decade.

Robertson's office highlighted recent statistics, noting housing starts are up over 20 per cent compared to pre-pandemic levels and rental construction is at a record pace. "Since forming government, we launched an ambitious national plan to focus our efforts and spur co-ordinated action between governments, homebuilders, and communities," his office said. Conservative housing critic Scott Aitchison accused the Liberals of quietly dropping the broader promise. "Their announcements and promises have turned into another Liberal housing illusion," Aitchison said in a statement.

The Canada Mortgage and Housing Corp. warned in a recent report that current construction levels are insufficient to restore pre-pandemic affordability within ten years. Its forecast anticipates 231,000 housing starts per year under a business-as-usual scenario, leaving a shortfall of up to 238,000 affordable homes by 2036. The Crown corporation said the country is entering a new phase with more balanced rental markets due to slowing population growth. However, it cautioned that failing to build rapidly now would keep affordability out of reach.

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Mike Moffatt of the Missing Middle Institute said the goal of doubling construction to roughly 500,000 annual starts was always a difficult target. He suggested it might be "excessive" because the government influences population growth, which dictates housing demand. "I never loved the target. I felt it was probably too high and missed some important nuances," Moffatt said. Andy Yan of Simon Fraser University's City Program also viewed the original goal as "more aspirational than realistic," questioning the capacity to meet it.

The federal government has implemented several policies to stimulate construction since Prime Minister Mark Carney took office, including GST waivers and new infrastructure funds. Budget 2026 proposes an additional $13 billion over ten years for Build Canada Homes, a Crown corporation focused on non-market housing. Moffatt noted that constraints like material costs and labour shortages affect all construction, including social housing. "There's no non-market drywall, right? There's no non-market lumber, there's no non market electrician," he said.

Many factors influencing homebuilding lie outside federal control, such as interest rates set by the Bank of Canada. The central bank raised rates last month for the first time in over three years. Yan pointed to federal programs like the Housing Accelerator Fund as being "fairly successful" in boosting rental construction. The government's renewed commitment to the doubling goal comes after its omission from both the recent budget and April's spring economic update.

With files from The Canadian Press, BNN Bloomberg and Winnipeg Sun