OTTAWA — Internal government documents reveal a troubling housing situation in Canada as the government prepares to establish a new agency aimed at accelerating home construction. Briefing materials for incoming Housing Minister Gregor Robertson, prepared in May, highlight the negative impact of high housing costs on the economy and the challenges many Canadians face in securing affordable living spaces.

The documents indicate that the government has not kept pace with investments in below-market housing, which disproportionately affects newcomers and vulnerable populations. According to government statistics, the cost of building an average home in Canada has surged by 58 percent since 2020. This increase may continue due to tariffs imposed by the United States.

In response to the crisis, the federal government plans to create the Build Canada Homes agency. This new entity aims to expedite the construction of affordable housing and promote the adoption of innovative building technologies. Prime Minister Mark Carney announced that the agency would be launched in the coming days during a recent Liberal caucus retreat.

The urgency of the situation is underscored by the growing number of Canadians struggling to find suitable housing, as rising costs continue to outpace wage growth. The government's efforts to address these issues come amid increasing public concern over housing affordability and availability.