Build Canada Homes: What It Means for Kelowna, BC, and the Canadian Housing Market
The housing crisis in Canada is no longer just a headline — it’s a reality shaping decisions for buyers, sellers, and investors from Kelowna to Vancouver and across the country. With affordability slipping further out of reach, governments at every level are scrambling for solutions.
One of the most ambitious new initiatives is Build Canada Homes — a federal program that aims to directly build affordable homes, finance projects, and push Canada’s construction industry to double its output. But can we really build our way out of this affordability crunch?
Let’s step back, look at the history, and then narrow in on where Kelowna and BC stand today.
A Century of Building – Why Supply Hasn’t Kept Up
Canada has gone through housing booms before. In the 1970s, we built more homes per person than at any point in history — peaking at nearly 273,000 homes in 1976.
Fast forward to 2021, and Canada nearly matched that record with 271,000 housing starts. The problem? Our population today is much larger. Even record construction hasn’t kept pace with record population growth.
In the 1970s, each new home served fewer than two new Canadians. In 2023, it was more than five new people per housing start. That’s the supply gap driving today’s affordability crisis.
The Last 5 Years: Why Building Has Slowed
Between 2019 and 2021, Canadian housing starts surged — but then interest rates jumped, material and labor costs soared, and projects stalled.
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Permits dropped as developers hit financing hurdles.
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Completions lagged despite high demand.
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Rental projects delayed as presales slowed in Vancouver and other major cities.
Even in Kelowna, where demand is strong, the city cautioned in 2022 that interest rates, construction costs, and supply chain delays were slowing projects.
Where We’re At Today: Canada, BC, Vancouver, Kelowna
Canada:
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Current pace: ~240,000–260,000 housing starts annually.
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CMHC says we need 3.5 million more homes by 2030 (on top of what we’re already building).
British Columbia:
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Record 50,490 housing starts in 2023 — but population growth (150,000+ new residents) outpaced supply.
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Only 12% were single-family homes, as the province pivots to multi-unit apartments.
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Experts estimate B.C. must double current output to ~75,000 additional homes per year.
Vancouver:
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Provincial mandate: 28,900 new homes by 2028.
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In the first six months of tracking, Vancouver delivered just 31% of Year 1’s target.
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Multi-family permit values are falling, signaling fewer future projects.
Kelowna:
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Provincial mandate: 8,774 new homes in five years.
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Needs: 2,000–3,000 new units per year to meet local growth.
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2023 starts: ~2,970 (down 12% from 2022).
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West Kelowna’s target: 2,266 new homes in five years.
Build Canada Homes – The Big Promise
The federal government’s new Build Canada Homes initiative is designed to scale housing like never before.
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Goal: Almost 3.9 million new homes by 2031.
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Method: Build directly, finance builders with $35B in low-cost loans, use public land, and push new construction methods (like modular housing).
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Target: Double construction to 500,000 new homes per year — something Canada has never achieved, even in its 1970s peak.
“We’re talking about almost 3.9 million homes by 2031. That’s a scale not seen in generations.” – Prime Minister Justin Trudeau
Will It Work?
Here’s the hard truth:
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Ambition is there. Both Canada and BC are pushing harder than ever before.
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History says it’s tough. We’ve never built at the scale being promised.
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Early results are mixed. Vancouver and other B.C. municipalities are already falling behind on Year 1 targets.
For Kelowna, hitting 8,774 homes in five years is possible — but it requires holding a record-breaking pace while costs and rates remain high. Developers, builders, municipalities, and governments all have to align.
What This Means for Kelowna Home Buyers and Sellers
For buyers:
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Don’t expect affordability to improve overnight. Even with Build Canada Homes, supply takes years to deliver.
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More rental and condo projects will come, but single-family homes will remain scarce.
For sellers:
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Inventory growth could change market dynamics — but in the short-term, demand is still stronger than supply.
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Positioning and pricing remain critical in this shifting market.
Final Thoughts
Build Canada Homes represents the most ambitious housing plan in Canadian history. For Kelowna, BC, and Vancouver, the challenge is execution: turning permits into completions, and promises into real homes.
We’re at a crossroads. If governments and builders succeed, we’ll see more balanced markets and a path toward affordability. If not, today’s supply crunch will only deepen.
Either way, staying informed is essential — and that’s where we come in.
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👉 Kelowna Real Estate is local, but it’s also part of the bigger Canadian story. At Selling Kelowna Real Estate Group, we combine local expertise with national context so you can make smarter moves — whether buying, selling, or investing.
Mark and Maddie Coons
Selling Kelowna Real Estate Group
Tel: 778-744-0872
