Canada will invest an additional C$1.2 billion to shore up its forest‑products industry, accelerate mass‑timber use in public buildings and reduce dependence on the United States, the federal government announced at Kalesnikoff’s mass‑timber plant in Castlegar, British Columbia.
The package, included in Budget 2025, provides C$700 million in loan guarantees, available now through the Business Development Bank of Canada, and C$500 million, beginning in 2026–27, to renew and expand Natural Resources Canada programs that support product and market diversification.
“Canada’s forest sector is a cornerstone of our economy and a source of pride and livelihoods in communities across the country,” said Tim Hodgson, Minister of Energy and Natural Resources. “When the government spends, we will select Canadian suppliers by default — backing Canadian lumber, Canadian jobs and Canadian leadership in sustainable construction.”
“In times of global uncertainty, leadership means investing in what makes us resilient,” said Stephen Fuhr, Secretary of State for Defence Procurement. “Budget 2025 is not just a response to disruption — it’s a blueprint for renewal.”
At the plant, ministers toured lines that transform local lumber into low-carbon building components — cross-laminated timber panels, glulam beams, and prefabricated wall and floor systems — parts already used in projects supported by Natural Resources Canada’s Green Construction Through Wood program.
“We look forward to participating in urgently needed government infrastructure projects,” said Chris Kalesnikoff, chief operating officer of Kalesnikoff Mass Timber Inc. “These panels are already being fully assembled into site‑ready modules ideal for multi‑storey homes, schools and community infrastructure.”
Canada’s New Housing Agency is Laser-Focused on Mass Timber
It comes after Wood Central revealed back in September that the world’s most ambitious housing programme will “use as much mass timber as possible to create an entirely new housing industry.” That is according to Mark Carney, who doubled down on his commitment to developing an all-new housing agency—Build Canada Homes— “a bold approach and unprecedented investments to increase the housing supply.”
Wood Central understands that Build Canada Homes will use federal funding, public land, and regulatory support, alongside private-sector incentives, to establish a CA$13 billion programme to accelerate homebuilding nationwide. The agency will bring “all aspects of housing under one roof,” overseeing everything from emergency shelters to supportive and market-rate housing across urban and rural communities.
“Build Canada Homes will transform the way government works with the private sector to build,” Carney said. “We will create an entirely new housing industry using Canadian technology, Canadian workers, and Canadian resources—and give builders the tools they need to build more, build sustainably, and build at scale.”
To streamline delivery, the government will open public lands and remove bureaucratic hurdles, aiming to cut construction timelines by up to 50 per cent and reduce costs by as much as 20 per cent through the use of innovative housing technologies: “Build Canada Homes will place an intense focus on using cost-efficient and modern methods of construction such as factory-built, modular and mass timber,” Carney said, before adding that it will embrace a Buy Canada policy, which prioritises domestically produced lumber, steel and other materials.
For its first build-out, the agency will directly construct 4,000 homes on six federal sites in Dartmouth (NS), Longueuil (QC), Ottawa and Toronto (ON), Winnipeg (MB) and Edmonton (AB). A C $1.5 billion fund will acquire at-risk rental buildings to preserve affordability, while C $1 billion is earmarked for transitional and supportive housing for those experiencing or at risk of homelessness. Former Toronto Deputy Mayor Ana Bailão will serve as the inaugural CEO of Build Canada Homes, bringing deep expertise in municipal and housing policy to the role.
- To learn more about the Build Canada Homes agency, click here for Wood Central’s special feature.
