An Update on Canada's Housing Accelerator Fund
A straightforward summary of the key facts from the official report on boosting housing supply nationwide.
Welcome back, everyone! Whether you're in a big city dealing with rising rents or a smaller community hoping for more homes, I'm here to break down the latest on the Housing Accelerator Fund in simple terms. This recap comes straight from the official document, focusing on the facts to help you stay informed. 🇨🇦 Let's get into it.
Overview of the Housing Accelerator Fund
The Housing Accelerator Fund (HAF) aims to help municipalities take steps to increase housing supply. It started with a goal of 100,000 new middle-class homes by 2024-25 and now targets 112,000 new homes by 2028.
The fund is run by the Canada Mortgage and Housing Corporation (CMHC) and has $4.4 billion allocated from 2023-24 to 2027-28. This includes $3.97 billion from the 2022 Budget, $69 million for administrative costs, and a $400 million top-up from the 2024 Budget.
Funding Commitments and Agreements
CMHC has active agreements with 230 sub-national governments, committing $4.37 billion in total funding. These agreements cover initiatives expected to lead to 119,685 more housing units than would have been built otherwise.
Most of the funding ($4.1 billion) and expected units (113,817) are under the Large/Urban Stream.
The rest ($261 million for 5,868 units) is under the Small/Rural/Northern/Indigenous Stream.
Agreements are in place with the province of Quebec and local governments in every other province and territory.
Key Initiatives Under the Agreements
Participating governments have agreed to 1,744 initiatives. Over three years, these are estimated to add 119,685 units, with a longer-term impact of 833,126 additional units over 10 years. The estimated cost to implement these initiatives is $3.2 billion.
Here are some highlights from the main types of initiatives, based on the report's table:
Adoption of Quebec's Act respecting land use planning and development: 1 jurisdiction, 23,000 units in 3 years, 23,000 in 10 years, $0 cost.
Implementing incentives, costing or fee structures to encourage such things as affordable housing: 114 jurisdictions, 12,538 units in 3 years, 46,364 in 10 years, $522 million cost.
Allowing increased housing density on a single lot including promoting "missing middle" housing forms: 130 jurisdictions, 11,044 units in 3 years, 148,461 in 10 years, $129 million cost.
Implementing new/enhanced processes or systems: 170 jurisdictions, 10,618 units in 3 years, 89,322 in 10 years, $165 million cost.
Promoting high-density development without the need for rezoning (as-of-right zoning): 61 jurisdictions, 10,341 units in 3 years, 163,685 in 10 years, $82 million cost.
The largest single initiative is Quebec's adoption of the Act respecting land use planning and development, accounting for 23,000 incremental units.
Spending in the First Year
HAF funding is meant to encourage housing reforms but must be used for housing-related purposes. In the first year, $599 million was advanced to some major cities, with $93 million (16%) spent by the end of that year.
Impact on Housing Permits and Starts
Participating jurisdictions issued permits for 31% more units and saw 5% more housing starts than their 2018 to 2023 average. This was higher than in non-participating areas.
From October 2024 to April 2025, census metropolitan areas (CMAs) in participating jurisdictions permitted 31% more units and had 5% more starts compared to historical averages. Non-participating CMAs saw -15% in permits and -28% in starts.
Changes vary by area:
Increases in Quebec, Calgary CMA, and Edmonton CMA were offset by decreases in Toronto CMA and other Ontario areas.
Quebec, Calgary, and Edmonton had rezoning efforts underway before their HAF agreements.
For specific cities in the first year (from the report's table on net units permitted):
Calgary: Baseline 11,947; Target 14,222; Actual 23,587; +11,640 vs. baseline; +9,365 vs. target.
Toronto: Baseline 16,400; Target 20,327; Actual 22,849; +6,449 vs. baseline; +2,522 vs. target.
Edmonton: Baseline 10,233; Target 11,978; Actual 16,435; +6,202 vs. baseline; +4,457 vs. target.
Vancouver: Baseline 4,208; Target 5,275; Actual 5,386; +1,178 vs. baseline; +111 vs. target.
Winnipeg: Baseline 3,645; Target 4,700; Actual 4,307; +662 vs. baseline; -393 vs. target.
Hamilton: Baseline 3,076; Target 3,967; Actual 3,092; +16 vs. baseline; -875 vs. target.
Ottawa: Baseline 11,046; Target 12,529; Actual 10,610; -436 vs. baseline; -1,919 vs. target.
Mississauga: Baseline 3,511; Target 4,526; Actual 2,276; -1,235 vs. baseline; -2,250 vs. target.
Total: Baseline 64,066; Target 77,524; Actual 88,542; +24,476 vs. baseline; +11,018 vs. target.
Note: Targets are annualized (1/3 of the three-year goal), and baselines are municipality-provided but may not be consistent.
What are your thoughts on how these housing efforts might play out in your neck of the woods? Share in the comments below—I'd love to hear from you. 🏠