Canada is entering a new era in real estate.
With Mark Carney at the helm and his 2025 housing strategy in motion, the country is poised for the most ambitious housing expansion since the post-war era. The goals are bold: double the pace of home construction, dramatically expand affordable rental housing, and modernize how we build and finance real estate.
But what do these sweeping policies mean for developers, property owners, construction firms, and investors? And what shifts should we expect across residential, multi-family, and commercial real estate?
Let’s unpack how this transformation will likely unfold—and what the industry should prepare for.
1. A Construction Boom Fueled by Modular Innovation
The newly proposed federal entity, Build Canada Homes (BCH), is at the heart of the plan. Modeled after post-WWII institutions, BCH is designed to finance and develop affordable housing at scale, backed by $25 billion in debt and $1 billion in equity for Canadian modular and prefabricated home builders.
Key implications:
- Modular construction and mass timber will take center stage as BCH places bulk orders to achieve economies of scale.
- Supply chain modernization will become critical to meet delivery timelines.
- Sustainability regulations will shape materials and methods, requiring low-emission building standards.
This signals a fast, factory-style approach to homebuilding and a new market reality in which innovation in construction will be rewarded.
2. Multi-Family Market Revival: Tax-Incentivized Growth
Carney’s plan breathes new life into multi-unit rental housing by reviving the MURB (Multiple Unit Rental Building) tax allowance—a once-successful program from the 1970s that drove the construction of over 190,000 rental units.
Why this matters:
- Investors will be able to deduct depreciation and other costs, making purpose-built rentals more financially viable.
- Developers are incentivized to convert existing buildings into affordable units, especially with reduced tax burdens for sellers transferring assets to non-profits.
- Municipal development charges for multi-unit housing will be cut in half for five years, easing cost pressures in expensive markets.
Rental housing, long neglected in favor of condos, could once again become a centerpiece of Canadian real estate.
3. Commercial Real Estate: A Quiet Transformation
Though the policy focus is residential, commercial property won’t be untouched. Adaptive reuse—turning underused office and commercial buildings into residential or mixed-use projects—will likely accelerate under zoning reforms and municipal incentives.
Emerging trends:
- Aging downtown office stock will be retrofitted into multi-family housing, senior housing, or co-living developments.
- Demand for industrial and logistics properties will rise due to the growth of prefab and modular housing factories.
- Transit-oriented and mixed-use developments will grow, as urban planning increasingly favors densification over sprawl.
This presents a dual opportunity for commercial landlords and real estate investors: modernize assets for new uses or pivot toward logistics and industrial development.
4. The Economic Ripple Effect: Affordability, Investment, and Growth
The real estate reboot has broader economic consequences:
- Increased GDP from construction and infrastructure investment.
- Job creation across skilled trades, engineering, and project management.
- Affordability improvements—especially for first-time buyers through GST rebates and new supply- remain challenging in hot markets.
- Potential inflation risks if materials and labor markets overheat, though prefabrication may offer cost containment.
At the same time, this plan demands tight federal-provincial coordination, innovative financing, and careful execution to meet its targets without unintended fallout. Potential challenges include managing inflation risks if materials and labor markets overheat, though prefabrication may offer cost containment.
What This Means for the Real Estate Industry
Whether you're a developer, investor, property manager, or construction firm, Canada’s new housing agenda will change how projects are financed, built, and managed. But it also brings with it a wave of potential growth and opportunity. Speed, scalability, and sustainability will become the new benchmarks, opening up new avenues for success.
A Note on Staying Ahead
Navigating this landscape will require more than traditional approaches. Companies that invest in technology, process automation, and real-time data visibility will be better equipped to take advantage of tax incentives, modular efficiencies, and funding opportunities.
Assetsoft, a leading real estate technology and consulting firm, works with companies across Canada to modernize operations—from project costing and ERP integration to lease management and data analytics. As the market evolves, tools like these will become essential for those looking to scale smartly and stay compliant with shifting regulatory frameworks.
Conclusion: A Defining Decade for Canadian Real Estate
Mark Carney’s housing plan isn’t just about building homes—it’s about reshaping the real estate ecosystem to be faster, greener, and more inclusive. For those ready to adapt, this new environment offers immense opportunity. With the potential for faster, greener, and more inclusive real estate, the future looks bright. For those unprepared, it could bring disruption.
The next decade will belong to the agile and innovative. Is your business ready to adapt and thrive in this new real estate landscape?