Internal government documents reveal grim housing climate in Canada

Minister of Housing and Infrastructure Gregor Robertson waits to appear as a witness at the House of Commons transport committee on Parliament Hill in Ottawa, on Aug. 1, 2025. THE CANADIAN PRESS/Adrian Wyld

OTTAWA — As Ottawa gears up to launch a new agency to build homes faster, internal government documents describe how dire the housing situation has become in Canada.

Briefing materials prepared for incoming Housing Minister Gregor Robertson this past May acknowledge that costly housing is hurting the economy and making it difficult for people to find places to live.

The documents say the government has fallen behind on investing in housing offered below market rates, a shortfall that is hitting newcomers and vulnerable Canadians especially hard.

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

The federal government plans to create a new Build Canada Homes agency to ramp up the pace of affordable homebuilding and encourage builders to adopt new technologies.

Prime Minister Mark Carney said at the Liberal caucus retreat earlier this week that his government would launch the new agency in the coming days.

This report by The Canadian Press was first published Sept. 12, 2025.

Craig Lord, The Canadian Press