Wednesday, February 25, 2026
The Government of Canada announced the launch of the second phase of Canada’s National Residential Housing Construction Program, a major expansion project that will see the construction of approximately 7,500 new residential housing units (RHUs) across Canada.
Through the Canadian Forces Housing Agency (CFHA), the Department of National Defence (DND) will build directly on the accelerated progress of the first phase, which has already provided more than 800 new units in nine locations experiencing significant housing shortages.
“Members of the Canadian Armed Forces and their families deserve safe, modern, and affordable housing. This historic expansion project, which includes 280 new homes right here in Ottawa, is one of the largest investments in military housing in decades. By building quickly and on a large scale across the country, we are strengthening operational readiness, supporting recruitment and retention, and providing military families with the stability they need to thrive,” said David J. McGuinty, Minister of National Defence.
The construction of residential buildings consisting primarily of one- or two-bedroom apartments is planned at all 25 locations where CFHA currently operates, including approximately 280 units in Ottawa. The five locations with the largest planned number of new housing units are Valcartier (Quebec), Petawawa (Ontario), and Edmonton (Alberta), each with over 1,000 new units, as well as Kingston (Ontario) with over 900, and Gagetown (New Brunswick) with over 500.
“Phase 2 of this project is our largest construction campaign since the portfolio was established after the Second World War. The Canadian Forces Housing Agency will collaborate with industry to deliver housing at an unprecedented pace and scale to support members of the Canadian Armed Forces and their families,” said Paola Zurro, CEO, Canadian Forces Housing Agency.
(Department of National Defence)
To facilitate this work, Defence Construction Canada has issued a Notice of Procurement for potential projects valued at approximately $3.74 billion. This notice will inform contractors of upcoming planned construction projects across the country and encourage early industry participation. The CFHA is collaborating with Canada Homes, the federal agency responsible for building affordable and off-market housing, to support housing availability by leveraging modern construction methods (MCMs), including modular and prefabricated construction systems and the use of low-carbon materials. This partnership directly supports Canada’s national commitment to innovative, sustainable, and scalable housing production, thereby strengthening the country’s capacity to efficiently deliver high-quality housing.
“By investing in thousands of new homes for Canadian Armed Forces members across the country, we are strengthening communities, reducing pressure on local housing markets, and building the quality homes that Canadians need. This national expansion is a crucial step toward building more affordable housing, maintaining good jobs, and ensuring that military personnel serving our country have homes that meet their current and future needs,” said Gregor Robertson, Minister of Housing and Infrastructure.
Featured image: (Department of National Defence)
