Ana Bailão, a veteran member of Toronto's city council, has begun her role as the first CEO of Build Canada Homes (BCH). This new agency, established by Prime Minister Mark Carney's government, aims to double the number of homes constructed annually across Canada. Critics question the decision to appoint Bailão, given her history as chair of Toronto's affordable housing committee during a period marked by significant housing price inflation.

Bailão will report to Gregor Robinson, a Vancouver MP and former mayor, who oversaw the city as it became Canada's most expensive housing market. Observers express skepticism about the ability of these two leaders to effectively address the housing crisis.

The challenges facing the housing market are extensive. Factors such as inflation, high interest rates, increased immigration, strict housing regulations, high municipal development fees, and lengthy construction approval processes contribute to rising housing prices. Critics argue that the very politicians responsible for these issues may not be equipped to resolve them.

In a recent announcement, Carney outlined BCH's mission, promising high-quality, environmentally sustainable homes built with low-carbon materials and technologies. He claimed this initiative would stimulate the softwood lumber industry and create tens of thousands of high-paying jobs, describing it as "the largest investment in infrastructure in a generation."

However, experts point out that BCH's focus on "non-market" housing implies subsidized prices, which may not address immediate housing needs. The agency is currently in a planning phase, tasked with identifying surplus federal lands for construction and developing complex building codes. Critics suggest that this bureaucratic approach may delay the construction of homes when immediate action is necessary.

Furthermore, BCH's commitment to using only Canadian building materials could lead to shortages, driving up construction costs for both BCH and private builders. This situation may ultimately increase housing prices for everyone. Additionally, potential labor shortages could further complicate the housing market.

The challenges facing BCH are reminiscent of New Zealand's KiwiBuild program, which promised 100,000 affordable homes but delivered fewer than 3,000, resulting in significant financial losses for taxpayers. As BCH begins its work, many are watching closely to see if it can avoid a similar fate.