CAGBC submission to the prebudget consultation Standing Committee on Finance
Canada faces two interconnected issues: a major housing shortage and the growing economic effects of transitioning the building sector towards high-performance standards and risk management, including a changing climate. Policy responses to one will directly influence outcomes for the other.
As Canada accelerates housing construction to restore affordability, the performance of new buildings will be a central determinant of long-term economic and environmental outcomes. Sustainable building is a critical economic sector, supporting over 500,000 jobs and contributing nearly $81 billion to Canada’s GDP in 2024. At the same time, Canada must build millions of new homes to restore affordability. Decisions made today will shape energy costs, emissions, and housing affordability for decades.
Addressing these challenges requires coordinated federal action in three areas:
1 – Embedding performance-driven investments in federally supported housing programs to ensure long-term affordability and resilience
2 – Creating market conditions that attract private capital into sustainable real estate at scale
3 – Strengthening data infrastructure to support investment decisions, performance measurement, and accountability.
Public support for these measures is strong. Canadians consistently indicate a preference for energy-efficient, resilient housing and support stronger standards in new construction. This provides a clear mandate for federal action.
CAGBC therefore recommends the following measures for inclusion in Budget 2026.