Military aims to build 7,500 housing units across Canada

Key Takeaways:

• The Department of National Defence has initiated the second phase of a military housing program that will deliver roughly 7,500 new residential units across 25 locations with a procurement notice worth $3.74 billion.
• The Canadian Forces Housing Agency is prioritizing the construction of one and two bedroom apartment buildings with the largest number of units planned for Valcartier Petawawa Edmonton Kingston and Gagetown.
• This initiative utilizes modular and prefabricated building systems while incorporating specific procurement targets to ensure at least five percent of the contracting value is awarded to Indigenous businesses.

The Whole Story:

The Department of National Defence launched the second phase of Canada’s military housing construction program on Tuesday, announcing plans to deliver approximately 7,500 new residential housing units across 25 locations nationwide, with an advanced procurement notice valued at $3.74 billion.

The Canadian Forces Housing Agency (CFHA) will build primarily one and two-bedroom apartment buildings at all 25 sites where it currently operates. The five locations with the largest planned growth are Valcartier, Quebec; Petawawa, Ontario; and Edmonton, Alberta, each with over 1,000 new units; Kingston, Ontario, with over 900 units; and Gagetown, New Brunswick, with over 500 units. Ottawa will see approximately 280 new units, with 160 planned at the Uplands site.

The announcement comes as Phase 1, launched in January 2025, is already delivering over 800 units across nine locations experiencing housing pressures.

“Canadian Armed Forces members and their families deserve safe, modern and affordable housing. This historic expansion—including 280 new homes here in Ottawa—is one of the most significant investments in military housing in decades,” Defence Minister David J. McGuinty said in a statement. “By building at speed and scale across the country, we are strengthening operational readiness, supporting recruitment and retention, and giving military families the stability they need to thrive.”

The CFHA is collaborating with Build Canada Homes, the federal agency for affordable and non-market housing, to leverage Modern Methods of Construction, including modular and prefabricated building systems and low-carbon materials. The partnership supports Canada’s commitment to innovative, sustainable and scalable housing production.

The program is expected to generate substantial labour demand nationwide, creating thousands of job-years and driving procurement of Canadian materials including steel, lumber, concrete, and mechanical and electrical systems. The initiative includes mandatory procurement targets and site-specific Indigenous Benefits Plans aiming to exceed the mandatory five per cent of the program’s contracting value to Indigenous businesses.

“Phase 2 is our largest construction campaign since the creation of the portfolio in the post-Second World War era,” said Paola Zurro, Chief Executive Officer of the Canadian Forces Housing Agency. “The Canadian Forces Housing Agency will work with industry to deliver housing at an unprecedented speed and scale to support Canadian Armed Forces members and their families.”

The $1.4 billion investment over 20 years forms part of Canada’s defence policy, ​Our North, Strong and Free: A Renewed Vision for Canada’s Defence​. Together, Phases 1 and 2 will deliver up to 7,500 new builds. The CFHA currently manages over 11,700 residential housing units across Canada.