Government of Canada Investing in Historic Military Housing Expansion to Support CAF Members and Families
Press Release
February 24, 2026 – Ottawa, ON - National Defence / Canadian Armed Forces
Today, the Honourable David J. McGuinty, Minister of National Defence, visited the Uplands site of Canadian Forces Support Group (Ottawa-Gatineau) to announce the launch of the second phase of Canada’s national housing construction program – a major expansion of military housing that plans to deliver approximately 7,500 new Residential Housing Units (RHUs) across Canada.
Through the Canadian Forces IHousing Agency (CFHA), the Department of National Defence (DND) will build on the accelerated progress of the first phase, which is already delivering over 800 new units in nine locations experiencing significant housing pressures.
Construction of primarily one and two-bedroom unit apartment buildings is planned at all 25 locations where CFHA currently operates, including approximately 280 units in Ottawa. The five locations with the largest planned growth include Valcartier, Quebec, Petawawa, Ontario and Edmonton, Alberta, with over 1,000 new housing units each; Kingston, Ontario, with over 900 housing units, and Gagetown, New Brunswick, with over 500 housing units.
To enable this work, Defence Construction Canada issued an advanced procurement notice for potential projects valued at approximately $3.74 billion. This notice will inform contractors of upcoming construction opportunities at locations across the country and support early engagement with industry. CFHA is collaborating with Build Canada Homes - the federal agency for affordable and non‑market housing - to support housing delivery by leveraging Modern Methods of Construction (MMC), including modular and prefabricated building systems and the use of low‑carbon materials. This partnership directly supports Canada’s national commitment toward innovative, sustainable, and scalable housing production, strengthening the country’s capacity to deliver high‑quality homes efficiently.
Investing in military housing plays a strategic role in strengthening the domestic supply chain. As one of Canada’s largest economic sectors, construction generates broad employment across skilled trades, engineering, architecture, site supervision, logistics and manufacturing. Phase 2 of the construction program will support substantial labour demand nationwide, creating thousands of job‑years over the program’s duration, and drive procurement of Canadian materials—such as steel, lumber, concrete, and mechanical and electrical systems, supporting Canadian industry competitiveness.
It will also support Indigenous employment, business growth and long‑term economic reconciliation through mandatory procurement targets and site‑specific Indigenous Benefits Plans aiming to exceed the mandatory 5% of the program’s contracting value to Indigenous businesses.
This investment strengthens the CAF’s ability to recruit and retain its members by improving access to safe and modern housing and supporting local economies through construction activity in communities across the country. Modern, energy-efficient residential housing directly enables operational readiness, enhances quality of life for CAF members and reduces pressure on local housing markets in surrounding communities.
Quotes
“Canadian Armed Forces members and their families deserve safe, modern and affordable housing. This historic expansion - including 280 new homes here in Ottawa -is one of the most significant investments in military housing in decades. By building at speed and scale across the country, we are strengthening operational readiness, supporting recruitment and retention, and giving military families the stability they need to thrive.”
The Honourable David J. McGuinty, Minister of National Defence
“By investing in thousands of new homes for members of the Canadian Armed Forces across the country, we are strengthening communities, easing pressure on local housing markets, and building quality housing that Canadians need. This national expansion is an important step in building more affordable homes, supporting good jobs, and ensuring that the members who serve our country have housing that meets their needs today and into the future.”
The Honourable Gregor Robertson, Minister of Housing and Infrastructure and Minister responsible for Pacific Economic Development Canada
“Phase 2 is our largest construction campaign since the creation of the portfolio in the post Second World War era. The Canadian Forces Housing Agency will work with industry to deliver housing at an unprecedented speed and scale to support Canadian Armed Forces members and their families.”
Paola Zurro, Chief Executive Officer, Canadian Forces Housing Agency
Quick facts
Through DND’s defence policy Our North, Strong and Free: A Renewed Vision for Canada’s Defence, these new homes form part of a $1.4 billion investment commitment to modernize housing for Canadian Armed Forces (CAF) members and their families. This work supports broader initiatives to enhance quality of life for those who serve Canada through the provision of housing and community services.
CFHA is launching its Phase 2 Construction Program as part of its Residential Portfolio Capital Investment Plan, which is a major component of the Residential Housing Response Plan.
The Residential Housing Response Plan provides site-specific solutions and services to meet housing needs. It includes renovation within the existing portfolio, a national housing construction program, acquisitions and alternative housing solutions such as the Dual-Use Pathfinder initiative, leases and service arrangements.
Canadian Forces Support Group (Ottawa-Gatineau) will see the delivery of approximately 280 new RHUs. One hundred and sixty of these units will be built at the Uplands site, and additional housing at other locations are being explored.
Phase 2 represents a significant, multi-year national investment in military housing infrastructure. Spanning 25 sites across six regions and valued at more than $3.7 billion, the program will stimulate sustained economic activity in design, construction, building systems manufacturing, and supporting services across Canada. Most of these projects are included in the advanced procurement notice that was released today.
Phase 2 follows the first phase that was announced in January 2025, initially launching the construction of 668 RHUs (now over 800 RHUs) in nine CAF locations. Together, Phases 1 and 2 will deliver up to 7,500 new builds across the country.
CFHA currently manages over 11,700 RHUs across Canada. The expansion under Phase 2 of the national construction program represents a significant step in modernizing and growing the Defence residential housing portfolio to better reflect the current and future needs of the CAF.
In close collaboration with Natural Resources Canada and National Research Council of Canada, Phase 2 advances the federal commitment to net zero, climate-resilient, and energy efficient infrastructure.
The distribution of construction projects across all regions will stimulate local economies, generating work for contractors, suppliers and service providers. Economic benefits will be felt through increased demand for local trades, transportation services, accommodations, fuel, food services and other community level spending associated with major construction programs.
About time. I always get miffed when the Feds lecture the Provinces on housing, the two areas where the Feds have direct responsibility for Housing is DND and Reserve lands and both are dismal and a mess.