Two million green homes: Canada needs quality affordable housing

Canada stands at a critical juncture in addressing its housing crisis. The federal government has promised to increase housing supply through 3.87 million new homes by 2031. The urgency to rapidly increase the supply of housing is underscored by an ever- increasing cost burden. In 2021, according to the Canada Mortage and Housing Corporation, “a household on average income would have had to devote close to 60% of their incomes to housing.” 

While fast, cheap construction might seem like the immediate answer, this approach risks creating a new set of problems for Canadians. Housing constructed today will shape communities for decades to come – and cutting corners now means higher costs later through excessive utility bills, uncomfortable living spaces, and buildings vulnerable to extreme weather events. 

 This pivotal moment presents an opportunity to create housing that balances cost with quality. Significant supplies of two types of housing are needed: affordable units, where costs are capped at 30% of household income, and attainable market-rate units that remain within reach for working families. To meet this growing demand, purpose-built rental housing has become a key solution, with multiple-unit residential buildings now making up nearly half of Canada’s apartment starts in early 2024—the highest level in nearly 30 years. By prioritizing sustainable design from the outset, these developments can create lasting value through energy-efficient systems, weather-resilient features, and superior indoor air quality, creating cost-effective and healthy living spaces for Canadians. 

In its new report, Two Million Green Homes: Ensuring Canada’s Needed New Housing is Affordable, Attainable, and Sustainable, CAGBC explores the importance of investing in quality construction for multi-unit rental developments. Building these apartment buildings with sustainable features delivers significant benefits for Canadians: lower utility costs, cleaner air, and protection from extreme weather. 

The report outlines the successes of Canada’s real estate and development sector on delivering green housing, the key challenges they face and the ways CAGBC will support sustainable housing as the solution to Canada’s housing squeeze. 

“Canada’s building sector already has the cost-effective, scalable technologies and proven approaches to build housing that is green and affordable for the long-term,” said Thomas Mueller, CAGBC’s President and CEO. “Not building green today will only shift costs onto everyday Canadians through higher energy costs. The home building industry, government and financial institutions need to remove barriers and provide practical solutions to transform Canada’s housing sector into a model of efficiency and innovation.” 

The report demonstrates that sustainability and affordability are not competing priorities. They can be complementary when we leverage sustainable technologies and prioritize quality. Supported by thoughtful policies and innovative financing models, Canada can spur housing that is green, cost-effective, and resilient to our changing climate.  

“Achieving more and better housing for Canadians requires collaboration from government, industry and the financial sector,” said Laurna Strikwerda, Director of CAGBC’s research and projects team. “Two Million Green Homes lays out a clear path forward for all relevant groups and commits CAGBC to supporting industry transformation through research, advocacy and industry training.”  

Part of a comprehensive affordable housing strategy must involve innovation and new technologies that can give people attractive, clean, comfortable and energy efficient houses. Morgan Solar, working with partners across the real estate sector are developing new technologies such as our Energy Blinds that will advance that goal, using Canadian made innovations for smarter, greener homes.

Mike Andrade

CEO, Morgan Solar and BEIC member

Canada’s building sector already has the cost-effective, scalable technologies and proven approaches to build housing that is green and affordable for the long-term.

Thomas Mueller

CAGBC’s President and CEO

Achieving more and better housing for Canadians requires collaboration from government, industry and the financial sector.

Laurna Strikwerda

Director of CAGBC’s research and projects team

The Building Energy Innovators Council (BEIC) believes that sustainability and affordability go hand in hand. This research validates our long-standing belief that Canadian housing can be both environmentally responsible and cost-effective. By supporting innovative building solutions, we’re helping create a future where sustainable housing is accessible to all Canadians.

Gord Hicks

Chair, BEIC