The federal government has launched the Housing Accelerator Fund, a $4 billion initiative that provides funding for local governments to fast track the creation of 100,000 new homes across Canada.

The fund will help cities, towns, and Indigenous governments unlock new housing supply by speeding up development and approvals, like fixing out-of-date permitting systems, introducing zoning reforms to build more density, or incentivizing development close to public transit.

Each year, Canada constructs about 200,000 new housing units—standalone houses, individual condos, and other types of homes alike. While annual construction has increased in recent years, it is not enough to address affordability challenges and keep up with the housing demands of a growing population.

The Government of Canada aims to double the rate of housing construction over the next decade to address growing demand.

“Canada has the fastest growing population in the G7, but our housing supply hasn’t kept up with demand,” said Prime Minister Justin Trudeau. “The fund will help local governments cut red tape and backlogs.”

The federal government is encouraging local governments to think big and be innovative in their approaches. They could be accelerating project timelines, allowing increased housing density, encouraging affordable housing units, and more. The fund will provide upfront funding to support implementation, as well as additional funds upon delivering results.

“We recognize that the key to increasing housing affordability is to boost the supply of homes available to Canadians,” said Ahmed Hussen, minister of Housing and Diversity and Inclusion. “By partnering with local governments, this fund will enable us to create long-term systemic changes in our housing system and make a tangible impact in increasing housing supply.”

The program, first announced in Budget 2022, will launch this June and run until 2026-27.

A full list of eligible system reforms is available on the website of the Canada Mortgage and Housing Corporation.