This is Queen Street Analytics' weekly digest of regulatory developments, legislative discussions and other government-related news related to residential and commercial construction as well as infrastructure and government initiatives and programs concerning housing and housing affordability. Once a week, we break down the most important updates in this space in under five minutes.

Dates: 2026-03-22 to 2026-03-28

📋 In This Week's Newsletter

• 🇨🇦 Federal Government News
• 🗺️ Provincial Government News
• 💬 Government Consultations
• 📚 What We're Reading This Week

Federal Government News

Federal Government Tables Legislation for $1.7 Billion Provincial Housing Fund

On March 26, 2026, the Department of Finance Canada, led by Minister François-Philippe Champagne, introduced Bill C-26, which would authorize $1.7 billion in immediate transfers to provinces and territories aimed at expanding housing supply. The funds will support targeted measures such as reducing development fees, supporting existing provincial housing incentive programs, and harmonizing regulations across the construction sector. In conjunction, the new federal Build Canada Homes agency is deploying housing programs totaling $40 billion to accelerate home construction, particularly affordable and community housing. Ontario’s HST policy, announced the previous day, serves as an example of how provincial-matched reforms are intended to stimulate supply. Access to the funding is conditional on provinces and territories reducing fees and charges related to homebuilding. Federal officials indicated these investments are part of a broader suite of policies designed to protect jobs in homebuilding and foster productivity in construction.

Sources: www.canada.ca

Legislation Passes to Implement Budget 2025: Significant Measures for Construction, Housing and Skilled Trades

Bill C-15, the Budget Implementation Act, 2025, received Royal Assent on March 27, introducing significant measures for the construction, real estate, and skilled trades sectors. The legislation funds the Build Canada Homes initiative and directs support to affordable homebuilding, seeks to double output over 10 years, and includes a broader Build Communities Strong Fund for infrastructure. New and enhanced tax incentives—such as an upgraded Clean Electricity ITC and a new Productivity Super-Deduction—are designed to increase capital investment and support construction industry productivity. The act also details new funding for vital infrastructure (roads, bridges, water, schools), relieved the GST on new homes for first-time buyers, and introduced consumer-friendly financial regulation, including support for credit unions and a legislative open banking framework. The bill’s Early Retirement Incentive provision is set to reshape the public sector workforce, potentially impacting government contracting and project timelines. In parallel, funding for sectors impacted by tariffs, reinforced "Buy Canadian Policy" with domestic supply preferences, and a $1 billion Arctic Infrastructure Fund to connect Northern communities are included.

Sources: www.canada.ca

Competition Bureau Requires Welltower Divestments in Retirement Home Deal

On March 25, 2026, the Competition Bureau finalized a consent agreement with Welltower OP LLC regarding its proposed acquisition of properties from Amica Senior Lifestyles. The Bureau found the deal could substantially lessen competition in the licensed retirement home sector across regions in Ontario and British Columbia. Under the agreement, Welltower must divest four retirement homes from its portfolio—situated in Victoria, Northwest Vancouver, Brampton, and Ottawa—to independent buyers approved by the Commissioner of Competition. The divestitures are intended to preserve competitive pressure on pricing and service quality within the sector as demand is expected to accelerate with an aging population. This is the second such agreement in March, following a similar outcome with Chartwell.

Sources: www.canada.ca

Federal, Provincial, and Municipal Governments Invest $35.6 Million in Newfoundland Water and Wastewater Infrastructure

A joint investment of more than $35.6 million was announced for ten water and wastewater projects in western Newfoundland, allowing for new housing development, such as a 300-unit residential subdivision in Corner Brook. The funds, coordinated by Housing, Infrastructure and Communities Canada, will address local growth, enable further residential construction, and support local building trades. Projects span from St. Anthony to Rose Blanche-Harbour Le Cou, underpinning future residential expansion in the region.

Sources: www.canada.ca

Procurement Ombud Calls for Stronger Indigenous Procurement Policy

The Office of the Procurement Ombud released its review of the Procurement Strategy for Indigenous Business (PSIB) on March 26, identifying critical deficiencies in federal support structures for Indigenous contracts. The review noted a lack of centralized policy, inconsistent departmental guidance, and limited recourse for suppliers. The Ombud recommends reforms for oversight, reporting and adjudication, with a specific gap identified in suppliers’ inability to appeal to the Canadian International Trade Tribunal for PSIB set-asides. Stakeholders in federal construction procurement may see changes as the government addresses these governance and compliance gaps.

Sources: www.canada.ca

Federal Government Supports Rural Transit in Alberta with $730,538 Investment

On March 27, 2026, six rural communities in Alberta secured $730,538 in federal support to purchase and plan new transit solutions, including electric vehicles for the Kehewin Cree Nation and an accessible van for Edson Senior’s Transportation Society. Projects will improve local and on-reserve transit for seniors, Indigenous residents, and those with disabilities, as well as support adaptive transit planning in Medicine Hat and feasibility studies in Vegreville and for Tribal Chief Ventures Inc. The investment, through the Rural Transit Solutions Fund, aims to improve mobility, access to services, and local connectivity—factors linked to regional housing development patterns.

Sources: www.canada.ca

Canada Partners with Saskatchewan to Support Tariff-Impacted Workers

$15.6 million will be invested over three years to assist up to 1,800 workers and employers in Saskatchewan’s steel, softwood lumber, and other tariff-impacted sectors. Announced March 27 by Employment and Social Development Canada in partnership with the provincial government, support will be distributed via the SaskJobs network and training providers, with a focus on upskilling, retraining, and assistance for participants in Employment Insurance Work-Sharing. The initiative is designed to protect jobs within the construction supply chain and adjust for shifting global trade conditions.

Sources: www.canada.ca

Annual Survey: Real Estate and Property Management Revenues Reach $150 Billion

Statistics Canada reported that the real estate rental, leasing, and property management segment generated $150.2 billion in operating revenue in 2024, a 6.1% increase from the previous year. Growth was propelled by a third consecutive year of large population increases, and non-residential sub-sectors experienced notable expansion as demand for logistics centres was buoyed by strong retail and e-commerce activity.

Sources: www.statcan.gc.ca

Payroll Employment up by 45,600 in January 2026

The Statistics Canada survey for January 2026 observed a month-over-month increase of 45,600 (+0.2%) in payroll employment, overturning a December decline. The year-over-year payroll rise stands at 33,500 (+0.2%). Trends in payroll data hold importance for industry labor availability, contractor hiring, and wage-setting in construction and building trades.

Sources: www.statcan.gc.ca

Specialized Design Services Show Continued Expansion

Revenues in specialized design services reached nearly $4.7 billion in 2024, according to Statistics Canada’s March 24 release. This represents a 4.3% annual increase and marks a fourth consecutive year of growth for providers of interior, industrial, and building design services.

Sources: www.statcan.gc.ca

Provincial Government News

Ontario Expands HST Rebate for New Homes up to $1 Million

Ontario’s 2026 Budget includes a full HST rebate for eligible buyers of new homes up to $1 million, effective April 1, 2026, and coordinated with the federal government to deliver nearly $2.2 billion in collective tax relief.

Sources: news.ontario.ca

B.C. Opens 40 Rental Homes in Prince Rupert Using Modular Construction

Prince Rupert saw the delivery of 40 new BC Builds rental homes built by NorthStar Pacific using modular techniques, exceeding affordability targets and supporting local employers in sectors including health care and logistics.

Sources: news.gov.bc.ca

Ontario Funds Conversion of 2,200 Condominium Units into Long-Term Rentals

Ontario will invest $300 million through the Building Ontario Fund in partnership with High Art Capital to convert 2,200 condominium units in the GTA into rental apartments, with 550 designated at below-market or income-based rents.

Sources: news.ontario.ca

Government of Alberta Launches Trades Discovery Centre

Alberta committed $6 million to open the Alberta Trades Discovery Centre in Calgary, providing junior high and high school students early, hands-on exposure to construction trades beginning in fall 2026.

Sources: www.alberta.ca

Nova Scotia and Canada Agree to One Project, One Review Environmental Approach

Nova Scotia signed a co-operation agreement with the federal government to integrate environmental reviews for major infrastructure and resource projects, aiming to reduce regulatory duplication and shorten assessment times.

Sources: news.novascotia.ca

Government Consultations

Federal Consultation on Green Public Procurement Tool Product Categories

Public Services and Procurement Canada, alongside the Circular Innovation Council, is soliciting feedback on adapting the U.S.-based Green Public Procurement Tool to Canadian standards, with consultation open until March 31, 2026.

Sources: circularinnovation.ca

What We're Reading This Week

• A Build America, Buy America law is causing construction delays amid the US housing crisis: The Toronto Star covers how the law’s sourcing requirements are affecting US construction project timelines.
• Ottawa proposes $1.7B fund to help provinces lower cost of homebuilding: CBC reports on the new federal fund intended to lower homebuilding costs.
• Welltower to sell four retirement homes in deal with Competition Bureau: The Star details the conditions of Welltower’s transaction with the Competition Bureau.
• NorthStar and Aurora Complete Estrella, Showcasing a Faster Path to Affordable, Purpose-Built Rental Housing in BC: Coverage of modular construction and expedited affordable housing delivery.
• BILD and the Large Urban Centre Alliance welcome the federal government’s tabling of new Improving Housing Supply Act: BILD and industry groups comment on federal legislative initiatives.
• Builders warn dip in new home construction is a threat to London's economy: Local builders signal risk from slowing home starts.
• CBU development group issues tenders to build housing at Tartan Downs: Updates on new project tenders in Nova Scotia.
• Electra Restarts Construction and Reports 2025 Financial Results: Electra restarts work, offering insights into sector project cycles.
• GETATIT ANDSTART BUILDING: The Globe and Mail feature discusses urgency in Canadian home construction.

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