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: 2026-02-22 to 2026-02-28

📋 In This Week's Newsletter

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

Federal Government News

Government Launches Phase 2 of National Military Housing Expansion, Targeting 7,500 New Units

The federal government announced the second phase of its national housing construction program for Canadian Armed Forces (CAF) members and their families. The Department of National Defence, via the Canadian Forces Housing Agency, will add around 7,500 new residential housing units in 25 locations nationwide. Notable sites with over 1,000 units planned include Valcartier, Petawawa and Edmonton. Kingston will see more than 900 units, and Gagetown over 500. The program is issuing an advanced procurement notice valued at about $3.74 billion to inform contractors about upcoming opportunities, supporting early engagement with industry. Construction will leverage modular and prefabricated systems, with a mandate for low-carbon materials. Build Canada Homes is collaborating as a delivery partner, and Indigenous businesses are expected to exceed 5% of program contracting value through dedicated benefit plans. The announcement specified job generation across various construction trades as well as increased demand for building materials, mechanical and electrical systems.

Sources: www.canada.ca

Ottawa and St. John’s Move Forward with $139 Million Wastewater Infrastructure Upgrade to Enable Additional Housing

The federal and Newfoundland and Labrador governments, alongside the City of St. John’s, are investing over $139 million for the first phase of expansion at the Riverhead Wastewater Treatment Facility. This work will boost water treatment capacity and prepare for a future secondary treatment facility. The infrastructure upgrade is designed to support the construction of new homes by increasing system capacity in response to community growth. The current phase will advance compliance with federal wastewater effluent regulations. The investment is expected to unlock new housing supply in St. John’s and surrounding communities by removing existing capacity constraints.

Sources: www.canada.ca

Federal, Provincial, and Municipal Governments Announce Over $1.5 Million for Water Infrastructure to Support Housing in Grand-Bouctouche, New Brunswick

Government officials announced joint funding for water and wastewater infrastructure in Grand-Bouctouche, New Brunswick, intended to support the development of up to 30 new housing units. The federal government is providing more than $784,000, with over $523,000 from the province and $261,000 from the town, through the Canada Housing Infrastructure Fund Agreement. The project will install drinking water, transmission, and sanitary sewer pipes along key streets, and address street reconstruction and drainage improvements. These works are positioned to increase the local housing stock, with a focus on preparing new serviced lots to meet population growth demands.

Sources: www.canada.ca

Natural Resources Canada Opens $500 Million in Forest Sector Transformation Funds, Details Seven Atlantic Projects for Mass Timber and Indigenous Capacity

Natural Resources Canada has launched calls for proposals under four national forest sector transformation programs, together worth $500 million: the Investments in Forest Industry Transformation (IFIT), Green Construction Through Wood (GCWood), Indigenous Forestry Initiative (IFI), and Global Forest Leadership Program (GloFor). These programs are aimed at expanding use of Canadian wood in construction, driving domestic demand, enabling Indigenous participation, and supporting research and export expansion. The department also announced $2.8 million in immediate funding for seven projects in New Brunswick and Nova Scotia, including the design of mass timber housing systems, upgrading a mill to increase supply for Indigenous housing, and the development of a low-carbon fuel oil facility. Projects are expected to contribute to innovative industrial processes, housing supply, and workforce development in Atlantic Canada.

Sources: www.canada.ca

Backgrounder and Appointment: David Chemla Named to Windsor-Detroit Bridge Authority Board

David Chemla, a professional with more than 25 years in public-private partnerships and major infrastructure advisory, has been appointed a director of Windsor-Detroit Bridge Authority. Chemla is current president of Sage Project Advisors and has held senior roles at Deloitte and Infrastructure Ontario. He brings expertise in large-scale project delivery and governance to the board overseeing the Gordie Howe International Bridge project. His experience includes leading multidisciplinary teams in budgeting, procurement, and construction of P3 infrastructure, as well as governance of affordable housing organizations.

Sources: www.canada.ca, www.canada.ca

Office of the Procurement Ombud Advances Creation of Government-wide Vendor Performance Management System

The Office of the Procurement Ombud convened its second Procurement Solutions Forum on establishing a federal Vendor Performance Management (VPM) system, drawing cross-departmental attention to contract management issues. Participants from multiple jurisdictions, including the City of Ottawa and Metrolinx, discussed lessons from implementation of their own VPM frameworks. These systems are intended to provide more reliable performance data for vendor selection, reward high-performing contractors, and reduce contracting risks. Federal officials noted that lack of VPM remains a barrier to improved procurement outcomes. Additional forums are scheduled to further explore foundational procurement reforms.

Sources: www.canada.ca

Statistics Canada: Non-residential Capital Expenditures Expected to Reach $401.2 Billion in 2026

New data from Statistics Canada projects that total capital expenditures by businesses and all levels of government on non-residential tangible capital assets will grow 3.7% in 2026, reaching $401.2 billion. This measure includes investment in construction, repair, and upgrades across commercial, industrial, and public infrastructure projects. Businesses and industry professionals can reference this indicator for upcoming investment trends.

Sources: www.statcan.gc.ca

Statistics Canada: Machinery and Equipment Price Index Now Available for December 2025

Statistics Canada released the Machinery and Equipment Price Index for December 2025 (2016=100), providing updated reference data for industry cost planning and contract adjustment.

Sources: www.statcan.gc.ca

Statistics Canada Business Survey: Cost- and Labour-related Challenges Persist in Construction

The Canadian Survey on Business Conditions for Q1 2026 reports that cost pressures and labour shortages remain the primary challenges identified by business respondents. However, overall business sentiment has shown improvement when compared to previous quarters. This dataset allows for monitoring of the ongoing operating environment across construction and related sectors.

Sources: www.statcan.gc.ca

Provincial Government News

Nova Scotia Advances Housing Legislation for Supply Acceleration and Project Approval

Nova Scotia amended several bills to extend the Executive Panel on Housing in Halifax, grant the Minister of Housing new order-making powers to expedite infrastructure coordination, and update performance management for municipal CAOs, aiming to speed housing delivery.

Sources: news.novascotia.ca

Manitoba Reports Progress in Affordable and Social Housing Supply and Reductions in Homelessness

The Manitoba government announced completion or ongoing construction of nearly 1,000 social and affordable units since October 2023, and movement of over 250 individuals from encampments or shelters into stable housing, citing tax credits and incentive programs.

Sources: news.gov.mb.ca

British Columbia Introduces Regulatory Amendments to Update Permitting for Homebuilding and Site Restoration

British Columbia enacted four regulatory changes to its permitting process, easing requirements for low-risk riparian development, expediting reconstruction after wildfire, and advancing a one-window approach to housing-related approvals.

Sources: news.gov.bc.ca

Nova Scotia Legislature Establishes Institute of Skilled Trades at NSCC Through Legislative Amendments

Nova Scotia introduced legislation enabling the creation of the Institute of Skilled Trades at NSCC, with an industry-led council, updated governance, and funding for modern equipment and classroom expansion.

Sources: news.novascotia.ca

Quebec Municipalities Face April 1, 2026 Deadline For Heritage Inventory and Building Maintenance Regulation Implementation

Quebec's municipal governments are reminded of the approaching April 1, 2026 deadline under Bill 69 to adopt a heritage inventory and meet new real estate building maintenance regime requirements.

Sources: www.quebec.ca

What We're Reading This Week

• Housing affordability challenges remain despite recent improvements: CMHC: Industry remains watchful as CMHC reports on affordability gaps.
• Defence department to build 7,500 new housing units across Canada: National coverage of DND’s planned military housing expansion.
• Most housing funds still flowing from Ottawa despite missed commitments: Ottawa maintains housing transfers; questions on meeting prior targets persist.
• Toronto startup brings its modular housing solution to Canada’s North: Coverage of a modular approach to Northern housing supply.
• Reality check: Did Trudeau and Carney’s immigration cuts make housing cheaper? Here’s what actually happened: News dive into links between immigration levels and housing prices.
• Opinion: Canada’s housing market has frayed our social fabric. How did this happen?: Perspectives on housing’s role in Canadian social cohesion.
• 200 new residential housing units to be constructed at CFB Greenwood: Details on new DND housing construction in Nova Scotia.
• Feds investing $3.5 billion to build thousands of new homes for Canadian Armed Forces members: Coverage of federal budget commitment for CAF housing.
• Data-informed decision-making enhancing project confidence: Reporting on the role of data analytics in construction project outcomes.
• A rock-solid foundation for our shared future: Feature on construction’s role in shaping Canada’s economic landscape.

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